Switching, credit build up from overpaying, what to do.

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Hello. Im with PTSB switching to AIB or Avant when i can.
Just Reading avants new rates Excited! Will ask a separate question later on Avants rates.
So iv over 5k built up in credit from overpaying. Now im looking to switch. Should i use that built up credit (use credit to cover next 3/4 months mortgage payments) to build up some savings over the next 4 months then switch, or let that credit there and it will come off the redemption figure switching. So i will be borrowing less from the new lender.
Thanks
 
Any others advisers. Thanks.
 
Without knowing your overall financial position, it’s hard to give a meaningful view.

But for what it’s worth, I think that generally this is a decent enough approach to managing one’s cash:

Priority 1) Keeping enough in cash to run the household for six months just in case the music stops

Priority 2) Maximising tax-relieved pension contributions and investing them 100% in equities

Priority 3) Having fun

Priority 4) Maximising mortgage overpayments

Priority 5) Investing the Small Gift Exemption for the kids each year

Priority 6) Maximising investment in CGTable assets such as direct equities, investment trusts, or US ETFs*
 
Thanks gekko, looking to switch before circumstances stance deem the switch unattainable. Options are use the credit to reduce redemption amount (borrow less off avant when switching) or to offset mortgage payments over next 4months and save the money before switching.
 
Iv about 3 months combined salary in savings (for 2 people), i have about 20k in shares but not readily accessible. Access to about 5k per year from that without paying income tax on it.
279k mortgage
29 years left.
Looking to switch from 2.95% (ptsb)to 2.15% (avant).
 
Hi,

I’d look to switch based on the lower redemption figure.

What are you doing on the pension side?

Gordon
 
Thanks
Pension side is-Defined benefit pension, don't no too much about it to be honest. I pay a portion and my employer pays towards its too. I am not sure what they are ment to pay.
In short this year on my current base salary I am Paying 175euro per month pre tax and employer is paying 590euro per month.
Also I started an paying into AVCs this year that is 170 euro per month pre tax.
 
So defined contribution?

Take the lower mortgage amount and do as much as you can afford on the pension side.

And be as high up the risk curve as you can (and stay the course).
 
I just logged onto the company that look after the pension there.
Where my salary is next to it, it says ''DB Basic Salary'' When I joined the company told me it was Defined Benefit.
I will send them am email now just to confirm.
''And be as high up the risk curve as you can (and stay the course)''- Is that for the AVCs??
Sorry now I know the topic related to the question is getting side tracked but it is all relevant in my case.

Thanks Gordon.
 
That sounds like Defined Benefit alright.

It’s just that you mention employee and employer contributions plus AVCs.

Hence the confusion.
 
Gordon
''And be as high up the risk curve as you can (and stay the course)''- Is that for the AVCs??
 
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