Pay off Tracker early AIB

[daithi]

overpaying tracker mortgage

Hi I have a tracker with UB which I am currently overpaying by 400e /month-should I just put this 400 /mo on deposit in the post office or should I just keep going with the overpayments as things stand?

cheers,

daithi

 

[oldnick]

Deposit rates are so low that once you pay DIRT -and especially if you pay PRSI on the yiled (which you should but I'm not sure how the average PAYE worker will be caught for this)- that the nett difference financially is so tiny that other factors come into play.

- You may need to get hold of cash quickly,and if you've lessened your deposit amount you may not grab that deal on whatever interests you.
- On the other hand there is a great mental boost to paying off your mortgage.

Basically these are the types of reason to decide - there's no big money difference in either option.

 

[podgerodge]

and it struck me recently, now that deposit rates have come down near the tracker rate, that the cost of paying mortgage protection should be factored in - pay off would reduce the annual premium (though you might have to take out a new policy)

 

[Yakuza]

and it struck me recently, now that deposit rates have come down near the tracker rate, that the cost of paying mortgage protection should be factored in - pay off would reduce the annual premium (though you might have to take out a new policy)

I've a mortgage protection plan whose sum assured is greater than the mortgage amount (and the margin will get larger as it's priced on interest rates at 6% and I'm overpaying). As far as I know, in the event of a claim, the policy will pay out the amount of the sum assured, regardless of the mortgage amount outstanding. Presumably any excess would go into the estate of the deceased.

With that in mind, it might be more bother than it's worth to cancel and set up a new policy.