Lump Sum mortgage payment

johnjoej

Hi There,

I have around 20K saved up in my savings account. I want to pay it all off my mortgage. If I get a bank draft and sent it into the mortgage team will there be any questions asked where I got the money from as I work part time or is there anything I should know

Archaeoliz

Depends on your mortgage. If you are on a fixed rate mortgage there may be a penalty for overpayments (either for any overpayments, or up to a certain percentage of the loan per year.) If you are on a variable rate then you can generally make overpayments more easily but there may be a percentage cap on how much of the loan you can pay per annum.

You may not need a bank draft, you might be able to do it by BACs / Bank Transfer. You may also be able to set up regular overpayments in the same way as savings, but it all depends on the conditions of your mortgage and the bank. They will be the best people to talk to.

fyfe79

Would be not be easier to make an appointment to talk to your bank's mortgage advisor directly? I can't imagine they would ask where the money is coming from. If asked you could just say it was a gift from a relative etc.

mad m

Like others have said, few things to consider.

What type of mortgage are you on, variable or fixed, tracker?
If your nearing the end of your mortgage then it might be worth lumping it off, if your on a tracker your actually better of not putting it off mortgage as you are getting a great rate. Money might be better off in a high interest account or buy some prize bonds or government bonds....

Loads of stuff to consider.

Chemical Byrne

Say what every cute hoor up and down the country says when they obtain money without any clear source - you got lucky on the horses.

MouseTail

fyfe79 wrote: »

Would be not be easier to make an appointment to talk to your bank's mortgage advisor directly? I can't imagine they would ask where the money is coming from. If asked you could just say it was a gift from a relative etc.

They are obliged under money laundering legislation to ask the source of the funds, if *I think* it is over €15,000. Just tell the truth, savings/inheritance whatever. They tick their box and that's the end of it.

Digital Society

Unless youre actually selling drugs or something you've nothing to worry about.

Where did you actually get the money?

tinkerbell

What an odd request. The only reason somebody would be asking if the bank will ask where the money is coming from is if they have something to hide regarding said money ...

What is the source of the €20k?

Rew

MouseTail wrote: »

They are obliged under money laundering legislation to ask the source of the funds, if *I think* it is over €15,000. Just tell the truth, savings/inheritance whatever. They tick their box and that's the end of it.

For bank customers its €5000, I've been asked a few times when dealing with cash when changing cars etc.

ted1

20k on the lottery is tax free, inheritance has tax implications , horse racing may also.

MarieOC

ted1 wrote: »

20k on the lottery is tax free, inheritance has tax implications , horse racing may also.

All of lotto is tax free

ted1

MarieOC wrote: »

All of lotto is tax free

I know but the op has 20k.

MarieOC

ted1 wrote: »

I know but the op has 20k.

Ah now I get you - sorry I thought you were saying there was a limit