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Affodabel housing and paying off some of the mortgae

  • 14-06-2010 10:17am
    #1
    billyhead
    Registered Users Posts: 9,525 ✭✭✭


    Folks,

    Just a quick question. I have a mortgage for addofdable housing with Fingal Co Co which I took out in April 2006 for €110000. I have kept up my monthly payments and have managed to save up €40000 in the credit union. I was wondering would it be worthwhile and can it be done to pay off a large chunk of my remaining mortgage with the council or should I just leave the money as it is in the Credit Union? Also if you think I should leave things as they are are there any fininancial institutions offering good deals in terms of interest on lump sums like this that would be better the having it in the credit union.


Comments

  • #2
    the_syco
    Registered Users Posts: 37,295 ✭✭✭✭the_syco


    How stable is your job? Personally, I'd keep a large percentage in the CU in case sh|t happens, and maybe put the rest into the ouse.


  • #3
    billyhead
    Registered Users Posts: 9,525 ✭✭✭billyhead


    Hi,

    I have a secure job in the civil service. Where do you suggest I should invest the lump sum I have saved up?


  • #4
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    billyhead wrote: »
    Hi,

    I have a secure job in the civil service. Where do you suggest I should invest the lump sum I have saved up?

    maybe diversify on this one as you want the savings on the mortgage also which will happen by paying off a lump sum, as long as your mortgage allows lump sum payments (harder to do on fixed rate accts afaik).

    it also depends about the rate your mortgage is at and the rate you cant get deposit at. If you can get a deposit rate higher than the mortgage then put the lump sum there. Remember the interest obtained will be subject to DIRT also which will show a reduction in the rate in real terms.

    Personally I would keep €10k of it in a quick access account for emergencies and other things that may come up. The rest into a deposit account if the rate is good and leave it a few years and when the mortgage rate goes above your deposit rate then pay it off the mortgage. Put it where the money is basically.

    Other people here will probably come in with more info on what schemes/accounts to invest in. I dont have that but you get the idea ;)


  • #5
    billyhead
    Registered Users Posts: 9,525 ✭✭✭billyhead


    Thanks Chris.

    I earn dividends on an annual basis keeping the money saved up in the credit union, but obviously I would like to get the best return on it in a financial instaitution. I am also saving €400 per forthnight from my wages which goes straight to the credit union account.


  • #6
    billyhead
    Registered Users Posts: 9,525 ✭✭✭billyhead


    Anyone have any advice as to where I should invest around €40000 for the best ROI


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  • #7
    stepbar
    Closed Accounts Posts: 6,123 ✭✭✭stepbar


    Fair play, saving 40k is some feat. I would be a prick and consider the following:- what interest rate are you on in terms of your mortgage vs the saving rate net of tax and go from there. To be fair I would not be in a rush to pay down your mortgage. Be a prick and actively manage ur credits and debits.


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