Tracker: Pay accellerated rate or save?

T

theclassic

Guest
Hi this is my first posting so I apologise if this question has been asked many times before.
I have a tracker mortgage +.6% with AIB. I am currently paying back my mortgage (5 years in and was originally 35 years) at an accellerated rate and my term is now 10 years.

I thought it would be good to get the balance down when interest rates are so low, and in this way try to get out of negative equity.
However I am currently having second thoughts and wonder if I should pay back very little and save money.

Is there a financial benefit to any one option that outweighs the other to a significant degree?

many thanks
 
Deposit rates are currently better than 1.6% (even net of DIRT) so you would be better putting the extra you are paying off the mortgage into a high interest account and then using that to pay a lump sum off the capital portion of the mortgage when the ECB rates start to rise again.
 
Many thanks for the reply plant43 - I didnt consider it from that perspective
 
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