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Overpaying tracker mortgage- shoud I stop?

  • 17-06-2011 3:27pm
    #1
    dinneenp
    Registered Users, Registered Users 2 Posts: 8,189 ✭✭✭


    Hi,
    I'm with TSB and have a tacker mortgage.
    I'm overpaying by €150 a month.
    Recently they've sent out letters stating that if you make a lump payment they'll take off an extra 10%.

    Should I stop overpaying? Build up the monthly payment (it'd be €1,800 in a year) and use this in a year if they're offering a discount for lump payments?

    Obvioulsy my overpayment is reducing my balance so it's reducing the amount we owe so decreasing the interest and saving us money. I've no idea how much though...

    possible issues- currently they're doing it for payments of mininum €5,000 (I think) so I mightn't qualify for it. But I imagine that if I approached them and said I have €1,800 or €3,600 (in two years) that they'd want to 'do a deal'..

    cheers,
    Pa.


Comments

  • #2
    greenman09
    Registered Users, Registered Users 2 Posts: 1,909 ✭✭✭greenman09


    I wouldnt think it would be that easy. Although by paying a lump sum you can benefit by lower repayments or reducing your term.


  • #3
    Cookie_Monster
    Registered Users, Registered Users 2 Posts: 24,537 ✭✭✭✭Cookie_Monster


    is the lump payment not total settlement of what's left to get that 10% though?


  • #4
    dinneenp
    Registered Users, Registered Users 2 Posts: 8,189 ✭✭✭dinneenp


    Cookie_Monster wrote: »
    is the lump payment not total settlement of what's left to get that 10% though?

    No; it's just them trying to reduce the amount and get them paid off sooner.

    Basically I should try to work out if paying €150 extra each month saves me more/less than paying 0 more for a while and then paying a lump to get the 10% discount...


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