Suggested ways to reduce monthly mortgage payments

[melbin]

My mortgage has went up €250 in the last two years, although I am managing fine with it, I would really like to get it down. I am on a tracker variable rate of 5%. I have looked at paying off a lump sum but in order to make a substantial reduction, i would need to pay off 15-20k. A lower rate of 1% would drop it by €100. I am currently with AIB. Would greatly appreciate if anyone knows of where or how I could get a better rate or reduce my payments.

 

[NorfBank]

Re: Suggested ways to reuced monthly mortgage payments

A rate of 5% indicates a tracker of ECB + 0.75%. You will not do better than this if you move your mortgage elsewhere.
To reduce your payments you would have to
1) Reduce the capital by paying off a lump sum as you mentioned
2) Extend the term - not recommended as you are coping fine at the moment and a term extension will result in a higher total repayment over the life of the mortgage.
You're on a good rate so try and be happy with that!

 

[ClubMan]

Re: Suggested ways to reuced monthly mortgage payments

My mortgage has went up €250 in the last two years, although I am managing fine with it, I would really like to get it down.

Why? If you are coping fine I mean?

 

[mayo exile]

Re: Suggested ways to reuced monthly mortgage payments

ECB + 0.75%

Don't complain! In these times thats a v good deal! Some banks won't even offer you a tracker today. I got ECB + 1.4% with the BoI during the week. LTV over 80%.

Piece in Irish Times today about EBS reducing its fixed rates to 5.79%. Average is 5.99%. Also in that piece, Ulster Bank's best tracker is ECB + 1.85%! Ouch!!

Link: [broken link removed]

 

[decembersal]

Re: Suggested ways to reuced monthly mortgage payments

I reduced my monthly mortgage payments by taking out the house insurance and paying it as a yearly lump sum as it previously had been included in the monthly mortgage payment. You could also look at how much your life assurance is costing you.
Other than that you have a great tracker rate as it is.

 

[ClubMan]

As I said above it would help if you could clarify why you want to reduce the repayment costs if you are already on a competitive rate and are comfortable with the repayments - e.g. what would you be doing with any money saved?