Providing my mortgage lender with a cheque for next 12 months mortgage repayments

S

sin37mull

Guest
Ive just recently taken voluntary redundancy and understand that there is an option to tell my mortgage company that i wish to pay next 12/18 months installments in advance by sending them a cheque . Can anyone guide me here and how i should approach mortgage lender and does it mean they must recalculate my interest payments?
I have a variable loan with Irish Life & Permanent with 15 years remaining.
 
Re: Providing my mortgage lender qith a cheque for next 12 months mortgage repayments

If it is variable, then you should be able to pay a lump sum in now, not put it in over 12-18mths. far better to do it now as you will save on the interest accruing over the 12-18 mths on the higher loan amount.
 
Re: Providing my mortgage lender qith a cheque for next 12 months mortgage repayments

Are you planning to pay a lump sum now and then nothing for the next year or are you planning to pay a lump sum now and then continue your repayments as usual? I am guessing the former but I am not sure.
 
Re: Providing my mortgage lender qith a cheque for next 12 months mortgage repayments

Pay the money off now in a lump sum - tell then in advance what you're doing - but you'll be better off in Interest terms if you do that - also maybe try to pay a small amount off on a fortnightly basis, even €100 - amazing what a difference it makes - it's only the cost of a meal out every week, or a pack of fags a day ...... Go for it!
 
What rate of interest are you paying on your mortgage?

Many of us with a low cost tracker can get a higher rate on deposit than we have to pay on our mortgage. In such cases, it is better to leave the money on deposit than to pay off the mortgage. Check out the Key Post on this topic if it applies to you.
 

+1, what Brendan said.

also giving the bank the use of your money when you could be making it work for you or keeping aside as contingency.
If you intend to pay off a lump sum & continue your monthly payments too, then you might consider keeping this lump sum as "set aside" in case your circumstances change for the worse. Just make sure that if you decide to "set aside" that you do just that & not be dipping in.
 
Brendan said:
Many of us with a low cost tracker can get a higher rate on deposit than we have to pay on our mortgage.
Click to expand...

What manner of genius sells their finished product for less than they buy their raw material.

I guess thats why taxpayers have to keep bailing out these highly paid idiots.

University degrees aplenty but couldnt find their own arses with a map.
 
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