Mortgage/loan

me4many

Whats the best way to go about this:

Mortgage remaining €11700
Interest rate variable. 5.19%
Time remaining. 33 months
Monthly repayment (tsb) € 384
Mortgage protection. € 41.04

Would like to pay off loan a little faster. Can give an extra €100/120 p/m
By paying the extra how much money and time will be saved and what is the best way to apply it to the loan.
Is there any way to get rid of the mortgage protection.

Thanks in advance.

smcgiff

Definitely get rid of the 41.04 extra charge

Marcanthony

smcgiff wrote: »

Definitely get rid of the 41.04 extra charge

and pay it off the princible each mth and pay the additional 120 off the princible.It will cut you down to approx 20 mts.Taking of over a year of the mortgage.

me4many

Would like to get rid of it ..but how?

themoneyguy

You can cancel life cover at any stage unless it is assigned to the bank which means they have to give their permission before you make any changes to the policy. Assignments are only usually looked for if the original loan is over a particular amount.

Def lodge what you can off the loan as you prob wont earn 5.19% a year if you put it on deposit.

As for cancelling your life cover.... if you die within the next 33 months (God forbid!) that 11K will have to come out of your estate.

Hope this helps

me4many

I think the cover will stay.
Checked out the credit union. €11700 over 33 months - €406 p/m. Credit union built insurance into the repayment.
What do you think of that or am I missing something.
I know to borrow €11700 approx €3000 would be needed in shares.

jameshayes

me4many wrote: »

I think the cover will stay.
Checked out the credit union. €11700 over 33 months - €406 p/m. Credit union built insurance into the repayment.
What do you think of that or am I missing something.
I know to borrow €11700 approx €3000 would be needed in shares.

If i was in this situation I would put this amount on a credit card and pay back as much as I could each month - ending the loan as quickly as possible. I imagine the CU are charging 10%apr, a credit card is ~20% but if you get an offer of free balance transfers for 1 year you would break even but have the flexibilty to pay it back as quickly (or slowly) as you wish..

me4many

This c.card idea looks interesting.
To get this up and running whats the step by step procedure.
Thanks

smcgiff

me4many wrote: »

This c.card idea looks interesting.
To get this up and running whats the step by step procedure.
Thanks

It's very unlikely you'd get a cc limit to clear the loan.