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Paying Mortgage Lump Sum - when is the right time?

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  • 15-06-2017 6:06pm
    #1
    davidclayton
    Registered Users Posts: 1,218 ✭✭✭


    I have a mortgage question I'm looking for some advice on.

    I have a lump sum of 6k that was earmarked for something, but isn't going to happen now. Obviously saving rates are non existent at the mo, so was thinking about dumping it into my mortgage.

    Is it better to pay lump sums off your mortgage when the interest rates are low? I think our mortgage rate is 0.75% as we're on a tracker.
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    #2
    tommythecat
    Registered Users Posts: 680 ✭✭✭tommythecat


    davidclayton wrote: »
    I have a mortgage question I'm looking for some advice on.

    I have a lump sum of 6k that was earmarked for something, but isn't going to happen now. Obviously saving rates are non existent at the mo, so was thinking about dumping it into my mortgage.

    Is it better to pay lump sums off your mortgage when the interest rates are low? I think our mortgage rate is 0.75% as we're on a tracker.

    With a rate that low it's not really gonna save you a whole lot of money. It's probably not far off what you'd get in a savings account. Why not buy some AIB shares!!! :)

    4kwp South East facing PV System. 5.3kwh Weco battery. South Dublin City.



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    #3
    davidclayton
    Registered Users Posts: 1,218 ✭✭✭davidclayton


    Minimum buy of 10k for those shares. I don't know enough about it to get involved in that.


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    #4
    brendan86
    Registered Users Posts: 491 ✭✭brendan86


    davidclayton wrote: »
    I have a mortgage question I'm looking for some advice on.

    I have a lump sum of 6k that was earmarked for something, but isn't going to happen now. Obviously saving rates are non existent at the mo, so was thinking about dumping it into my mortgage.

    Is it better to pay lump sums off your mortgage when the interest rates are low? I think our mortgage rate is 0.75% as we're on a tracker.

    Its hard to say since your interest rate is so low it won't make much of a difference I take it your mortgage is your only debt you don't have car loan/credit card etc which would be higher rate

    Also would depend on your ability to save and earnings. Only you know the answer. If you dont see yourself looking for a personal loan in the near future pay it towards mortgage now IMO.


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    #5
    davidclayton
    Registered Users Posts: 1,218 ✭✭✭davidclayton


    No other loans, or loans on the horizon (I always buy older cheap cars), and I have some savings outside this.

    OK, thanks for the help.


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    #6
    bmwguy
    Closed Accounts Posts: 2,006 ✭✭✭bmwguy


    Look into investing in a fund. Most financial companies have one. I have one that will eventually be a children's college fund. Giving me 6/7 % a year so far. Or start up a pension. Your mortgage rate is too low to even think about lumping into.


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    #7
    skippy2
    Registered Users Posts: 393 ✭✭skippy2


    + 1 your Tracker mortgage is the cheapest money you will ever borrow so you should be able to invest somewhere else and get a better rate of return


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    #8
    davidclayton
    Registered Users Posts: 1,218 ✭✭✭davidclayton


    6/7%? wow. Not bad.
    Did you get it through a bank or where?


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