save or repay lump sum off mortgage?

P

Paddywhack

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I Have a tracker mortgage of €135,000 with AIB.

Mortgage replayment this month was €744.51
(€856.50 - €111.99(int relief) ).

I Have 70,000 in cash broken down as follows:

*10,000 in Rabo Direct (5% on savings account)
*20,000 in First active e-saver account 5.22% AER variable
(4.07% for balances between €15,001 - €1,000,000).
*30,000 invested in shares
*10,000 in AIB regular saver accounts

Question is: Would I be better off paying a lump sum of 70,000 off my mortgage instead of saving?
 
I think I would do that in your position. The more capital you owe the more intrest you pay and with intrest rates going up you'll be saving on interest as well as having to spend 70,000 less on the end of your morgage.

Sound like you'd save more than 70,000 doing that way.
 
Paddywhack said:
*20,000 in First active e-saver account 5.22% AER variable
(4.07% for balances between €15,001 - €1,000,000).
Click to expand...
This is wrong - it's 5.22% on up to €15K but if your balance exceeds that then the rate falls to 4.07% for the lot.
 
I'd agree with shirley d. What's the rate on your tracker?
Anything earning less than the tracker rate on your mortgage (and any potential further increases) could be better put to use off the outstanding mortgage balance.
 
Don't forget to factor in owner occupier mortgage interest relief on your mortgage and DIRT on deposit interest.
 
I'm the kind of person who doesn't like debt even if I didn't crunch everydetail, I'll rather have a smaller morgage.
 
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