In general it makes little sense to save while having outstanding debts. Check in case there are any penalties for clearing the loan but it may well be a good idea to clear this before worrying about saving/investing.Is it best to pay off the car loan immediately?
They currently offer the best standard demand deposit rate for up to €10K (i.e. 5% gross CAR).Is Rabo Direct currently the best place to put a sum of 5k - I will probably not make many additional lodgements to the account, just to have it there if needed?
Check the best buys list.Is AIB currently the best option for a regular savings account?
The cheapest PRSA?What is the best option for a PRSA at the moment?
You can do the latter by just instructing your lender in writing that you are making a lump sum capital repayment and want to keep your repayments at their "normal" level thus reducing the effective term. See Karl Jeacle's mortgage calculator for info on the effects of such accelerated repayment strategies.- Is putting 40k into the mortgage the best option - I would hope to take a couple of years off the mortgage with this rather than just reduce the monthly payments?
No.As for the 5k in Rabo - will I be charged account fees if I do not make additional contributions to it?
Bear in mind you'll need to monitor this with rate changes - if your lender recalculates your current repayment by adding a fixed overpayment to the "new" base payment, rather than by fixing your monthly repayment, then the base payment will be recalculated on the basis of the outstanding capital and the original term, and the same overpayment applied on top. This can result in the wonderful contradiction of your monthly payment reducing when the interest rate increases. It's important to be very clear on this in communicating with your lender so there's no room for confusion. Preferably a little clearer than my explanation, I suspect.You can do the latter by just instructing your lender in writing that you are making a lump sum capital repayment and want to keep your repayments at their "normal" level thus reducing the effective term.
What I meant was tell the lender that you wanted to leave the repayment at its current rate which (on a tracker/variable) will fluctuate with future rate changes but which will mean that the capital repayment is working to reduce the effective term of your mortgage rather than impacting repayments. You need to put these instructions clearly in writing to avoid any confusion.Bear in mind you'll need to monitor this with rate changes
I think that's nearly as confusing as I was!What I meant was tell the lender that you wanted to leave the repayment at its current rate which (on a tracker/variable) will fluctuate with future rate changes but which will mean that the capital repayment is working to reduce the effective term of your mortgage rather than impacting repayments. You need to put these instructions clearly in writing to avoid any confusion.
All I know is that I did this very thing with EBS years ago when clearing the original 20 year mortgage for IR£40K in about 7. Whatever about the technicalities it worked and saved a lot.I think that's nearly as confusing as I was!
Do you mean "at its current nominal amount"?
Your SSIA is worth €35K!?This post is very valid to me too. I will have about 35K left over when I get my SSIA.
Maybe try Karl Jeacle's morgage calculator?I want to pay 20K straight off the mortgage, but actually up the repayments, so I am also reducing the term. How am I able to work out, for example if I want to fix my monthly repayments so that I pay €12K pa off the capital sum of the mortgage as well as paying the interest.
Not unless your lender calculates interest anually. Otherwise you would most likely be better off making accelerated repayments as soon as possible.Am I better by saving the additional payments in, say, my rabo or northern rock account and then paying it as a lump sum off at the end of the year.
4. At present I am not contributing to a pension (I am 28, but have a pension from a previous position) - I am planning on using the money which I was paying into the SSIA, €254, and put it into a PRSA - can increase this amount if needed.
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