Putting lump sum into Mortgage

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Snap

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My husband and I have savings of approx 70,000. Our mortgage currently stands at 290,000 owing to the bank.

I'm in favour of putting about 50,000 towards the mortgage and retaining 20,000 rainy day money.

My husband wants to keep it all for the rainy day! He says we could continue to pay our mortgage payments for a good while if we lost our jobs, etc.

The other problem is that our mortgage does not come up for renewal until late next year, whereas I'd like to put the money towards it now before AIB goes up in a puff of smoke and all the money is gone (worst case scenario I know). We're also on quite a high interest rate as when we renewed last time it the interest rates were climbing steadily. I'd like to try to renegotiate with the bank for a better rate and give them the lump sum at the time - wd the fact that we want to hand them a wad of cash be any help in renegotiating a better rate or am I being naive to think that?

I would appreciate your advice.
 
Your husband has a point. If you pay off the money and run in to trouble later, the bank will still be looking for monthly payments.

You need to consider the safety of your jobs and the interest rate and security of your investments.
If you can get an interest rate for the 70000 which is nearly what you are paying for the mortgage then it makes less difference which you do, except keeping the money in cash will cover many more scenarios and ricks than paying off the mortgage.
Think through the possible scenarios, one of you loses a job, both do, maybe some unpaid maternity leave to cover etc.

You may be on a high rate for the mortgage now, but the rates could start to climb sharply at any stage if a recovery happens. Your fixed rate might start to look good again!!

If AIB goes up in a puff of smoke your savings are guaranteed by the government. You will get the money back.
 
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