Overpay fixed rate mortgage?

T

tom1ie

Registered User
Messages
126
Hi all,
I’m wondering should I start overpaying my mortgage?
We have spare cash every month that is just building up in the bank.
Mortgage is a 7 yr fixed (only 4 months into it) with avant @1.95% with 250k outstanding, approx 20 years left to pay. We can overpay by 20% each year.

We both have stable jobs, I am in a semi state with pension and my wife is working for a foreign multi national with pension.

We are both 40.

In the current climate with cash to spare am I better off paying off 20% a year, every year for 7 years, to lower the outstanding amount?

Thanks for any advice.
 
7 years fixed at 1.95% sounds like Avant, but they only allow a 10% over payment?
 
Last edited:
Hi Tom

without all the information from a full moneymakeover, it does seem like the right strategy.

You can, as of right, overpay the mortgage by 10% each year.

After that, they may be a break fee. The only way to find out is to ask.

But overpay the 10% first.

But even if there is a break fee, it's probably going to be worth doing.

Brendan
 
apologies,
i will set this out in the format used by previous posters:
Age:
40
Spouse’s/Partner's age:
40

Annual gross income from employment or profession:
E75000
Annual gross income spouse:
E65000

Type of employment:
I am Semi state and other half is Foreign multi national working in Ireland.

Expenditure pattern:
We are both generally 'savers'

Rough estimate of value of home
E700000
Mortgage on home
E252,000
Mortgage provider:
Avent
Type of mortgage: Tracker, interest only, fixed rate
fixed for 7 years, 3 months into it
Interest rate
1.95%

Other borrowings – car loans/personal loans etc
None

Do you pay off your full credit card balance each month?
Dont have a credit card!

Savings and investments:
E30K savings plus 15K tied up in my wife's work shares

Do you have a pension scheme?
yes i have a DB scheme and my wife is in a DC scheme. I don't really know a whole lot about my pension but I really do want to know how it works. I get a statement every year and the last one said my projected retirement benefits at NRA (Normal retirement age, which will be 65) is €17,099 per year with a lump sum of €90K. The state pension has to be added to this, which i will only get from 67 (is that correct?) so there's a 2 year gap where i am on the 17k PA, which works out at €328 per week. Does this seem about right?

Do you own any investment or other property?
No.

Ages of children:
9,7, and 1 week old

Life insurance:
Yes.

What specific question do you have or what issues are of concern to you?
Hi all,
I’m wondering should I start overpaying my mortgage?
We have spare cash every month that is just building up in the bank.

In the current climate with cash to spare am I better off paying off 10% a year, every year for 7 years, to lower the outstanding amount?

Also i would like some advice or guidance on the pension details i have posted above, should i be looking at AVC's? if so before or after paying off the 10% every year for 7 years?

Thanks for any advice.
 
Hi guys any more views on the above as I have filled in all the info now?
Also any advice on the pension?
 
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