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Mortgage lumpsum payment?

  • 22-10-2013 7:52pm
    #1
    wexie
    Closed Accounts Posts: 7,480 ✭✭✭


    We find ourselves in the lucky situation where it looks like we'll be able to pay off one of our mortgages with a lumpsum payment courtesy of a very generous parent.

    We have 2 mortgages, original one from the first property and then a second one we got as a top up when we moved. They're roughly the same amount and we can probably manage to pay one off.

    However, one of these is a tracker and one is a on a variable rate.

    If there's no deal to be done I'd imagine the best way to go would be to pay off the variable part on hold onto the tracker?

    However do you think this could be used a bargaining tool? From what I gather the banks would rather glad to see the tracker go away?

    The question is though how gladly would they like to see it go? Worth talking to them about (we already have a financial adviser lined up but just getting some ideas).

    Bank is PTSB by the way.

    P.S. does anybody know the maximum a parent can gift to a child without creating a tax liability? I was told it's 175K but saw 225k mentioned somewhere?


Comments

  • #2
    Scortho
    Closed Accounts Posts: 3,876 ✭✭✭Scortho


    Without knowing both rates It'd make more sense to pay of the variable.
    However I'd still approach the bank to see would they do a deal. Naturally the one that saves you most in the long run is the one to go for!:)

    250k is the max for CAT exemption.


  • #3
    mad m
    Registered Users, Registered Users 2 Posts: 9,016 ✭✭✭mad m


    wexie wrote: »

    If there's no deal to be done I'd imagine the best way to go would be to pay off the variable part on hold onto the tracker?

    However do you think this could be used a bargaining tool? From what I gather the banks would rather glad to see the tracker go away?

    Without question trackers are costing banks money.

    Holding onto your tracker is good for you at present.

    Have you missed any payments on either of mortgages?

    If you pay off the variable one, you will saved a lot in interest that you would of paid over the term of the mortgage....

    So let's say you do a deal with them and they give you 20k off the tracker mortgage. Your still left with paying the variable one and the interest which could be more than the 20k you got off tracker. Well if you know what I mean.


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