Not sure what you mean but if you enter different sets of figures, one at a time, then you can compare the results.PS: I've used the mortgage calculator here: http://www.jeacle.ie/mortgage/ie/, but it doesn't give me the option of entering overpayments for comparison purposes
Note that you may not be locked in indefinitely. I did this before with EBS and just told them to fix the repayments at a specific level above the "normal" variable rate mortgage repayment and I was able to revert to the normal repayment at will (by informing them obviously).What the banker was telling you (and fair play to them for pointing it out) is that if you want to reduce the term, you do so by paying higher monthly amounts (naturally), but by specifying to reduce the term, you are locked in to paying the new, higher monthly amounts. All this takes paperwork and administration by the bank.
Making accelerated capital repayments will reduce the effective term of your mortgage. The only way this would not be so would be if you made a lump sum capital repayment and then had your normal repayment reduced but stuck to the originally agreed term.Will increasing my payments actually reduce the term of my loan from 35 years to, say, 25 years?
Yes.When I sell my property in 5 years time, will I own more of the sale value?
The only extra cost in the second senario is that you are still paying life assurance over the term of the loan, which hasn't changed. The yearly premiums may be slightly higher, but that is a small price to pay for the added flexibility.
Don't forget that if, God forbid, you died then the mortgage protection will pay off the balance of the loan. There should be a small balance left over that will be paid to your estate.
No - level term will always pay out the sum originally borrowed. Most or all decreasing term policies reduce the amount payable at some rate over the term of the mortgage so accelerated repayment of the capital amount could lead to the policy paying out more than is due back to the lender.I thought that the mortgage protection only clears the outstanding balance on the mortgage, regardless of whether that ends up being lower than the original payment plan had forecast, and that you get nothing 'left over' - which is why I always understood it to be important to review your life mortgage protection regularly if you do decided to accelerate your repayments, and reduce the level of cover if necessary.
What do you mean? You can do both - make the lump sum capital repayment and keep your normal/regular repayments at their already agreed level thereby reducing the effective term. Or you could keep the original term but reduce your ongoing repayments. The former approach yields the best savings though.In the case of having a large lump sum would you advise to simply make a one off payment or would it be better to arrange to reduce the term?
Is it a level or reducing term policy?Presumably my life insurance is linked to the size of the mortgage too and I can therefore reduce this??
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?