Hi there,
I have a tracker mortgage with approx. 140k left over 8 years and also a " warehouse" amount of 130k. My tracker is set at .75% over ECB so the rate now is 3.25%. This will cost approx. 4k in interest payments this year after paying €1200 for the past 10years or so.
I have never given much thought to the Warehouse part of the mortgage as it doesnt accrue interest and just sits there to be paid off at the end of the mortgage (perhaps by downsizing or by savings). Recentli I saw on this platofrm that the bank may be giving a bonus to any payments made to the warehouse of an additional 20% top up.I rang my bank and they did indeed conform this. The catch for me is that the 10 year anniversary of the split mortgage is in 20 months time and this incentive stops then.
After putting the kids through college etc., my partner and I are managing to save again and have 50 k savings at the moment and probably the same again in 2 more years. My question is should I focus on paying down the tracker or fix the tracker and put money in the warehouse loan to take advantage of the bonus scheme while its there?
KR, Hesseny
I have a tracker mortgage with approx. 140k left over 8 years and also a " warehouse" amount of 130k. My tracker is set at .75% over ECB so the rate now is 3.25%. This will cost approx. 4k in interest payments this year after paying €1200 for the past 10years or so.
I have never given much thought to the Warehouse part of the mortgage as it doesnt accrue interest and just sits there to be paid off at the end of the mortgage (perhaps by downsizing or by savings). Recentli I saw on this platofrm that the bank may be giving a bonus to any payments made to the warehouse of an additional 20% top up.I rang my bank and they did indeed conform this. The catch for me is that the 10 year anniversary of the split mortgage is in 20 months time and this incentive stops then.
After putting the kids through college etc., my partner and I are managing to save again and have 50 k savings at the moment and probably the same again in 2 more years. My question is should I focus on paying down the tracker or fix the tracker and put money in the warehouse loan to take advantage of the bonus scheme while its there?
KR, Hesseny