Want to pay more into my mortgage vs keeping savings, makes sense?

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grassisgreen

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Ok, you guys are more expert than I at this so wish me luck with explaining this - go easy on me on my first post:D!

As of now - 9 years left on mtg, owing about €225,000.00

Tracker at 4.1% BOI

Since Mar 2021 been overpaying by €500.00 per month, so now repayments are about €2900.00 per month

Looking to overpay by another €500.00 per month as have money in prize bonds is not doing anything

Would this be the sensible thing to do at this stage (given ECB has moved rapidly north)? I gather there wouldn't be an issue with increasing overpayments? Probably not interested in a lump sum downpayment as would like the flexibility of stopping overpayments if needs be.

Tks for advice in advance
 
You should do a Money Makeover post using the template provided because it's somewhere between difficult and impossible to answer your question without a more comprehensive overview of your overall financial and personal circumstances.
 
Thanks Clubman, ok took a look at Money Makeover, I don't think I need that level of advice tbh

I am specifically looking for info only related to savings vs mortgage overpayments i.e. does it make more sense to make extra overpayments while having savings in bonds doing practically nothing.
 
You really should do a Money Makeover as it's not possible to answer the question without knowing about pensions and other plans.

But some of the factors are discussed here:

Better to save than to overpay a low fixed rate mortgage in some instances?

A recent post got me thinking are we close to the point where it makes financial sense to save rather than to pay down debt i.e., for some borrowers the return on savings (net of DIRT & PRSI) is greater than overpaying a fixed rate mortgage. There was a point in the past where this strategy...
www.askaboutmoney.com
 
If rates stay at this level for years to come you will save a tonne of interest down the line by overpaying.
If they drop back in years to come you will still save a nice bit of interest down the line.
 
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