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Do you overpay your mortgage?

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24567…10

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    #32
    begbysback
    Closed Accounts Posts: 2,910 ✭✭✭begbysback


    I does be doing overpaying all the time


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    #33
    murpho999
    Registered Users Posts: 28,391 ✭✭✭✭murpho999


    I've always thought ploughing money into a mortgage is a really bad idea as it's the cheapest money you can get.

    People have a fear of the mortgage but if you can afford then what's the problem.

    If you have money over then invest it in an investment fund, or shares or a pension and get it to earn money for you rather than just give to a bank.


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    #34
    griffin100
    Registered Users Posts: 4,770 ✭✭✭griffin100


    SteM wrote: »
    Yup, absolutely. Used to overpay by a lot more before we had the young fella but we still overpay every month with KBC.

    1) It comes off the principal so you don't pay interest on whatever you overpay.
    2) You can 'withdraw' what you've overpaid if you need it. It will take a few weeks but at least I know the money is available if a disaster happens.

    I’ve been thinking about doing this so must check in with KBC. If the option to get the overpayments back is there in an emergency that makes it more attractive and I’d happily overpay by a few hundred each month.

    For me it’s about having the mortgage paid off by the time I’m 60 so I have the choice of retiring at that age with a decent pension and lump sum with no mortgage payments if I want. My current mortgage will run until I’m 70 and I don’t look forward to having to make monthly payments or work until that age if I don’t want to.


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    #35
    TomSweeney
    Registered Users Posts: 3,193 ✭✭✭TomSweeney


    Jaysus, I wish I could , to those sneering at the ones paying the minimum - not everyone is lucky enough to be on such massive salaries to overpay ...


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    #36
    TomSweeney
    Registered Users Posts: 3,193 ✭✭✭TomSweeney


    PokeHerKing wrote: »
    You should have the below before looking to overpay your mortgage:

    - Pension contributions maxed out
    - no other debt at higher rates
    - 3/6 months wages saved

    Once the above are ticked you should absolutely be paying it off as quick as possible.




    Brilliant...
    let's run through them ...


    - Pension contributions maxed out - eh I've zero pension contributions, why would I put money away for 30 years to have them tell me at the end that they blew it ? this has happened so much there is no way i'd risk it.


    - no other debt at higher rates - OK here ...


    - 3/6 months wages saved - I've about 3 months in my own personal savings, but taking savings with my wife/holidays account etc would add to more..


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    #37
    Leg End Reject
    Registered Users Posts: 16,356 ✭✭✭✭Leg End Reject


    Yes, lucky enough to have bought before prices went crazy.

    Pension contribution, set amount into savings and a €200 overpayment on my mortgage.

    The overpayment can be withdrawn without penalty, so it's technically a rainy day fund if required too, if not it saves interest over the life of the mortgage and reduces the term.
    https://forumofgames.com/index.php

    >>> Staying Alive <<<



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    #38
    SteM
    Registered Users Posts: 6,551 ✭✭✭SteM


    jj880 wrote: »
    I find it hard to believe a bank would allow overpayment of principal only. What does a bank get from offering that?

    The only person I know of who tried this with AIB was laughed out of the place and told they could shorten the mortgage term but any overpayment would go towards principal + interest. She went ahead and paid up 24 months of payments but took that period as a break from making any payments.

    I realise she could be spoofing. She has been known to cry poor.

    I don't know about AIB but KBC do. It's in the doc you sign when you set the overpayment up. "The additional payments will be deducted from your capital balance".


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    #39
    SteM
    Registered Users Posts: 6,551 ✭✭✭SteM


    TomSweeney wrote: »
    Jaysus, I wish I could , to those sneering at the ones paying the minimum - not everyone is lucky enough to be on such massive salaries to overpay ...

    I don't see one sneering post tbh. I see people answering a question that the OP asked, sorry you see that as people sneering at you.


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    #40
    McGinniesta
    Registered Users Posts: 4,402 ✭✭✭McGinniesta


    Mortgages are for suckers.

    Cash customers only.


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    #41
    [Deleted User]
    Posts: 5,121 ✭✭✭ [Deleted User]


    Leg End Reject wrote: »
    Yes, lucky enough to have bought before prices went crazy.

    Pension contribution, set amount into savings and a €200 overpayment on my mortgage.

    The overpayment can be withdrawn without penalty, so it's technically a rainy day fund if required too, if not it saves interest over the life of the mortgage and reduces the term.
    Are you sure?

    'Overpayments made are not refundable'
    https://personalbanking.bankofireland.com/borrow/mortgages/existing/mortgage-flexi-options/#panel3
    If you remortgage for a lower rate any overpayment would be locked in for sure.


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    #42
    2011
    Moderators, Home & Garden Moderators, Technology & Internet Moderators, Regional East Moderators Posts: 12,532 Mod ✭✭✭✭2011


    I only overpay by a small amount. I could increase the amount considerably but then I would be able to put much into my pension. As I’m lucky enough to be on a tracker I’m only on 0.5% interest so it’s “cheap money”. What concerns me far more is how much I will have to live on when I finally retire.


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    #43
    tallaghtjoe
    Registered Users Posts: 66 ✭✭tallaghtjoe


    I overpay €200 pm also. We were each saving through the government saving scheme a while back but had mortgage organised before my one had finished. We just decided to continue with the payment as an overpayment on the mortgage, so we didnt really see difference in payout each month. It is knocking a few years off our mortgage term.


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    #44
    Leg End Reject
    Registered Users Posts: 16,356 ✭✭✭✭Leg End Reject


    [Deleted User] wrote: »
    Are you sure?

    'Overpayments made are not refundable'
    https://personalbanking.bankofireland.com/borrow/mortgages/existing/mortgage-flexi-options/#panel3
    If you remortgage for a lower rate any overpayment would be locked in for sure.

    They are with KBC, just need to email a picture of a signed letter. I've used it to replace a boiler.

    Different banks might have different rules.
    https://forumofgames.com/index.php

    >>> Staying Alive <<<



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    #45
    Blackjack
    Registered Users Posts: 3,592 ✭✭✭Blackjack


    jj880 wrote: »
    I find it hard to believe a bank would allow overpayment of principal only. What does a bank get from offering that?

    The only person I know of who tried this with AIB was laughed out of the place and told they could shorten the mortgage term but any overpayment would go towards principal + interest. She went ahead and paid up 24 months of payments but took that period as a break from making any payments.

    I realise she could be spoofing. She has been known to cry poor.

    She was definitely spoofing. She probably didn't understand what she was being told, knew this but decided to blame the bank. That sort of behavior is quite common.


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    #46
    blue note
    Registered Users Posts: 4,504 ✭✭✭blue note


    We do at the moment because we're in a position where we can without changing our lives in any way. We pay an extra 10% per month. Our mortgage is from 2018, so I'd call it a very high mortgage!

    If we keep the same repayments, at our current interest rate we should be down to less than 10 grand interest being charged per year in 2025. And we should have her paid off in 2044.

    I'm an accountant. I know that a mortgage is the cheapest money you'll ever get. I know that putting it into a pension is probably the sensible financial decision. However, the idea of clearing your mortgage early is nice. Being mortgage free in my 50s would be great.


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    #47
    jrosen
    Registered Users Posts: 1,629 ✭✭✭jrosen


    We overpay a little bit. I guess by the time we pay the mortgage, all the other monthly costs, put money aside for anything annual like car service/ insurance /tax/back to school/christmas/birthdays , then save for the kids college, general rainy day savings/holidays and living expenses there isn't a much left to over pay the mortgage and with rates so low it seems pretty pointless to take from any of the other places.


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    #48
    Tipperary animal lover
    Registered Users Posts: 1,490 ✭✭✭Tipperary animal lover


    We overpaid for years and finished the last payment two months ago, great to have that monkey off our back and still be in our late 40s to enjoy a decent quality of life.


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    #49
    Paul_Mc1988
    Registered Users Posts: 748 ✭✭✭Paul_Mc1988


    TomSweeney wrote: »
    Jaysus, I wish I could , to those sneering at the ones paying the minimum - not everyone is lucky enough to be on such massive salaries to overpay ...

    Nobody is sneering at anyone in here what are you taking about. People who have the means to overpay are simply giving their opinion about whether its good or bad.


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    #50
    Paul_Mc1988
    Registered Users Posts: 748 ✭✭✭Paul_Mc1988


    jj880 wrote: »
    I find it hard to believe a bank would allow overpayment of principal only. What does a bank get from offering that?

    The only person I know of who tried this with AIB was laughed out of the place and told they could shorten the mortgage term but any overpayment would go towards principal + interest. She went ahead and paid up 24 months of payments but took that period as a break from making any payments.

    I realise she could be spoofing. She has been known to cry poor.

    You find something hard to believe even though a simple Google search tells you it's true. Used the Internet before? :D

    Ulster Bank allow a 10% of your outstanding balance per year..... have 300k left on your mortgage and you can over pay by 30k

    KBC allow the same

    BOI fine you a very small amount


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    #51
    Paul_Mc1988
    Registered Users Posts: 748 ✭✭✭Paul_Mc1988


    McGinniesta wrote: »
    Mortgages are for suckers.

    Cash customers only.

    You're not wrong there. The amount of interest I pay over the lifetime of my mortgage (150k) makes me feel like a sucker sometimes :D


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    #52
    BraveDonut
    Registered Users Posts: 1,020 ✭✭✭BraveDonut


    I have a slightly different take on this.
    I do have a rainy day fund that I could use to clear most/all of my mortgage.
    However, I choose to continue to pay my low interest, manageable monthly amount as I see it is a form of savings.

    If I cleared my mortgage and had more available cash at the end of the month, I would probably only start to spend more.


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    #53
    Paul_Mc1988
    Registered Users Posts: 748 ✭✭✭Paul_Mc1988


    Another point I find frustrating is that people say a mortgage is the cheapest money you can get.

    The money you save is the cheapest money you can get. Bar a mortgage which is a nessisary evil, taking a loan for anything else (holiday/car) is a mugs game. Buy the things you can afford and in the end you'll be much better off financially.


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    #54
    Leg End Reject
    Registered Users Posts: 16,356 ✭✭✭✭Leg End Reject


    BraveDonut wrote: »
    I have a slightly different take on this.
    I do have a rainy day fund that I could use to clear most/all of my mortgage.
    However, I choose to continue to pay my low interest, manageable monthly amount as I see it is a form of savings.

    If I cleared my mortgage and had more available cash at the end of the month, I would probably only start to spend more.
    That's an enviable position, fair play! I hope you have the money invested rather than sitting in an account.
    https://forumofgames.com/index.php

    >>> Staying Alive <<<



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    #55
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    On a tracker with a company that won't accept overpayments. I can write a cheque and send it in annually but can never seem to manage it with kids, bills, etc.


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    #56
    Paul_Mc1988
    Registered Users Posts: 748 ✭✭✭Paul_Mc1988


    BraveDonut wrote: »
    I have a slightly different take on this.
    I do have a rainy day fund that I could use to clear most/all of my mortgage.
    However, I choose to continue to pay my low interest, manageable monthly amount as I see it is a form of savings.

    If I cleared my mortgage and had more available cash at the end of the month, I would probably only start to spend more.

    But in the end you have less money and give money to a bank for no reason.


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    #57
    TheChizler
    Registered Users Posts: 9,405 ✭✭✭TheChizler


    Bought an old house so everything's going toward renovating at the moment, definitely would be looking to overpay once that's out of the way.


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    #58
    Sgt Hartman
    Registered Users Posts: 2,437 ✭✭✭Sgt Hartman


    I'm still quite early into my mortgage but after a few years I'll definitely start overpaying. The quicker I can pay it off the better.


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    #59
    Kerry25x
    Registered Users Posts: 554 ✭✭✭Kerry25x


    I feel that the impact mortgage repayments make on your finances is a factor.

    Could clear our mortgage in about 4 years (22 years early) if we overpaid by 2000 a month which is a less than what we put in to savings at the moment.

    But our mortgage repayments are so low, about 6.5% of our take home income, that its pretty painless and having it cleared would honestly make very little difference to our quality of life.


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    #60
    jimmytwotimes 2013
    Registered Users Posts: 4,763 ✭✭✭jimmytwotimes 2013


    Does you does or does you don't take Access?


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    #61
    murpho999
    Registered Users Posts: 28,391 ✭✭✭✭murpho999


    Niner leprauchan wrote: »
    On a tracker with a company that won't accept overpayments. I can write a cheque and send it in annually but can never seem to manage it with kids, bills, etc.

    Find an investment fund that returns more than the mortgage interest rate on your mortgage and then you're making money and then you can pay off your mortgage with the profits.

    Really think people are foolish just overpaying their mortgage.


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