Early settlement of mortgage

mygt

All,

I am in the enviable position of being able to pay off my mortgage early. I have about 8 years left and I reckon I will save tens of thousands of Euro in interest etc. Generally I am interested in anyone's experiences doing this.

I fixed into a 5 year fixed rate last year and so I am liable to be penalised for breaking the 5 year tie-in. I thought if you settled early this didn't come into effect. But the Bank says it does and will penalise me. So as a result the settlement amount is slightly higher than the outstanding amount. If I wasn't locked into this 5 year rate, would the settlement be significantly lower?

Are there any reasons why I shouldn't settle early? (I can't think of any)

Can anyone recommend good Irish financial sites/boards?

chicken_food

we settled up on our mortgage about a year ago when there was another 18 years left on it. The bank tried explaining that there would be fees and penalties for such actions. When my parents found the original document and read through the terms and conditions-the only thing they could find relating to any get out early fees was one sentence ' the mortgage holders are liable for a fee of £500 if they terminate/settle their mortgage before the given time frame'. So my advice is read through everything you have. It has made a big difference to us having paid off the house. Its almost a pride thing-now its OURS. With the amount you'd save on interest, you could put it towards an extension or re decorate a room or two.

Ours was with BOI btw

nesf

mygt wrote:

Can anyone recommend good Irish financial sites/boards?

http://www.askaboutmoney.com/

It's a good site.