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Two mortgages, which should I pay off

  • 12-01-2024 4:25pm
    #1
    suscon
    Registered Users, Registered Users 2 Posts: 3 ✭


    Hi, I have two mortgages on my home with the same bank. One is approx 95K and the other is approx 20K. We have 25K in savings/credit union and have decided to put 20K off our mortgages. Should I pay off the small one in total or put the 20K off the larger debt?

    I'm on a tracker +.8% of the ECB rate.

    Thanks for your advice



Comments

  • #2
    Geuze
    Registered Users, Registered Users 2 Posts: 14,242 ✭✭✭✭Geuze


    Repay more expensive debt first is the normal rule.


    If both mortgages are on the same rate, ECB + 0.8% = 5.3%, then it doesn't really make any difference.


    I suppose it's cleaner to simply clear one mortgage?



  • #3
    suscon
    Registered Users, Registered Users 2 Posts: 3 ✭suscon


    Cheers, appreciate your advice. I'm thinking if there's no real difference, I'll clear the small one.



  • #4
    daheff
    Registered Users, Registered Users 2 Posts: 5,994 ✭✭✭daheff


    just before you pay it off, ensure you have savings to cover at least 6 months of expenditure. This keeps you covered for a while in the event that somebody was laid off, or god forbid unwell and unable to work



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