Paying Off Tracker Mortgage Early?

Conor84

I have my mortgage with Ulster Bank so due to transfer soin. I inly have 3 years and about €26k left to pay off. I gave savings that I can use to pay it off and am thinking I will.

I E Mailed them 2 weeks ago looking for a settlement figure but have got no response yet so will follow that up. Just wondering, if in general, as a variable loan the repayment fugure would just be the outstanding balance?

Is there any negative in doing this?

thegame983

Yes, the balance is what you pay (will need to factor in daily interest as funds take a few days to clear)

No downside unless you have any other use for the money. Generally a mortgage is the cheapest loan you can get. EG if you have a car loan pay that off first.

marty whelan

Would it be worth your while sticking a bit if your savings into a pension? 40% tax relief

3DataModem

Effectively you are "investing" the money at whatever the interest rate is over the next 3 years. If you are certain you don't need it, and don't have other investments you want to make, it is a good idea. You can simply direct the same amount of your monthly income back into your savings account, at the end of the 3 years you'll be net better off. You'll also be able to cancel the mortgage protection, get the deeds into your possession, etc.

walterking

If cash is just sitting in your account then this is a no brainer.

Even if you got interest you will pay dirt tax.

You also save on being able to stop the mortgage protection policy.

And you will also wallow in the knowledge that every brick in the house is all yours 😃