Should I keep up my overpayments on my mortgage?

D

Dam24

Guest
Hi

I have a tracker mortgage with €183k left to pay

I have a credit built up of €32k - overpaying for a few yrs now (fortunately)

Just wondering:

1. should I clear down the credit against the balance now ?
2. continue to overpay and build up the credit ?
3. start to use the credit as the mthly mortgage repayment, and invest the normal payment amount in savings at a better interest rate (BOI 4%, etc.)

Not sure what to do with the low interest rates at present on mortgage - better to clear or.........???
 
As there may well be an incentive for people to make lump sum payments off their tracker, I would suggest stopping making payments until then.

Brendan
 
While somewhat off the question i came across a very helpful calculator on the Bank of Ireland mortgage website which shows you how much you save in terms of interest and duration of the loan when you make an overpayment.

[broken link removed]
 
sorry Brendan, not sure I follow ??

are you suggesting stop the overpayment (build up of credit) ?? build up the overpayment in an account for a future lumpsum payment ??

Could you advise on the credit - can it be used as a lump sum off the mortgage and therefore get the incentivised 10% bonus ?
 
Are you saying you have built up a 32k credit against your mortgage account? So you are not earning any interest on the 32k at the moment and haven't used it to take it off the principal either?

You need to do one or the other really.
 
Hi Dam

I am not sure how your particular account works.

If you have a credit built up of €32k, does that mean that you can cease payments altogether until that €32k is used up?

If so, that is what you should do and you should save up the repayments you would have otherwise made in a separate account which you could use in the event of a deal.

Are you with PTSB? If so, then there is a deal which you could take advantage of.

Brendan
 
Brendan Burgess said:
As there may well be an incentive for people to make lump sum payments off their tracker, I would suggest stopping making payments until then.

Brendan
Click to expand...

Could you give more details of this? I am thinking of putting some of my savings into paying a lump sum off the capital on my mortgage bur was holding off because I have a very competitive tracker (ECB + 0.6%) and money is in a savings account paying 3%. However, if there is some incentive available, I would rethink (although not if it involved giving up my tracker rate to go onto a fixed rate). I am with AIB
 
mammyof2 - you should continue to save as you are now - pTSB have an incentive scheme for paying a lump sum off your tracker mortgage, and we are waiting to see if other banks follow-suit. If AIB do, then it may be perfect for you
 
No. Stop the over payments right now. Find the highest interest regular saving account you can find and put the money there. Dont have too high a notice period in case the banks come out with a more suitable offer in future.

I think that in addition to PTSB offering 10% on lump sum payments that they will be soon offering 10% on over payments. Other banks will follow too. They are just losing fortunes on trackers. Over payments are easier to collect than lump sums.
 
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