switching mortgage

My mortgage is with EBS at 3% fixed and will be up in June.I owe 70000 with 106 months remaining. The house would be worth about 185000. I intend paying a lump sum off it of 20000. Could anyone advise me if it is worthwhile moving my mortgage and to where. When I put in the figures on the online calculators I don't seem to save a lot. Any help appreciated.

Once you pay off 20k, your remaining mortgage will be 50k.
That's about the minimum most banks will lend.

As an example, over 106 months paying 2.2% rather than 3% would save you 1,920 in total.

Why are you waiting until June to pay off the 20k?

While you're looking at this, if you haven't reviewed your mortgage protection it might be worth doing. Unless your circumstances have changed you might be able to save money there.

We are in a similar situation to you and are currently in the process of switching to AIB. We are paying 3.1% and will be paying 2.35% when we fix in a couple of months. Our balance will be around 85000 and plan to pay it off in 9 years. Maybe sooner as we will fix now for 5 years and reassess our situation then. We will probably save around 20e per month on our repayments with more going off the principal every month so its definitely worth it. The bank has gotten enough money from me so even the small amount saved is better in our pocket than theirs. We will probably not be able to move banks again as we will owe around 50k when the fixed term is over and thats the minimum we can borrow for a mortgage.

Did you get the 2.35 % from AIB as a LTV rate?

RedOnion said:

While you're looking at this, if you haven't reviewed your mortgage protection it might be worth doing. Unless your circumstances have changed you might be able to save money there.

Click to expand...

Perhaps this is a topic for a new thread but: can monthly repayments of mortgage protection be reduced if there is a large difference between amount insured vs remaining mortgage value, i.e. you've overpaid? I've always wondered this.

fungie20 said:

Perhaps this is a topic for a new thread but: can monthly repayments of mortgage protection be reduced if there is a large difference between amount insured vs remaining mortgage value, i.e. you've overpaid? I've always wondered this.

Click to expand...

Yes, you can reduce the covered amount. But remember it's form of life assurance. If you're over insured and you die, whatever is left over after paying the mortgage will go to your estate.
Unless you've paid off a very large amount you won't notice much difference in premium.

It's more that life assurance has got cheaper over the years, so someone with a policy from 10+ years ago might be able to get the same cover cheaper now, so long as they're in good health.

blanketyblank said:

Did you get the 2.35 % from AIB as a LTV rate?

Click to expand...

Yes we would have a LTV of <50%