View Poll Results: Do you overpay your mortgage?
Yes! Pay everything I can off it 96 24.37%
I overpay a small bit. 102 25.89%
No. I'd rather the money in my pocket. 117 29.70%
Don't have a mortgage. 79 20.05%
Voters: 394. You may not vote on this poll

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30-04-2021, 10:39   #16
screamer
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Originally Posted by A Tyrant Named Miltiades! View Post
No I certainly do not overpay my mortgage and whenever this question comes up, I find myself getting very mad at Eddie Hobbs, who used to go around telling everyone to overpay their mortgage.

If you are already very rich, then overpay your mortgage. Most of us are not at all rich.

Like most mortgage owners, I don't have a big rainy day fund sitting in a bank account, so comparing savings vs lending interest rates is purely theoretical in the first place.

If I put all my money into my mortgage, however, i will inevitably need a personal loan sometime in the future, or run up a big credit card debt. Have you seen the rates they charge?

Keep your money. Pay at the agreed rate. If you are likely to need a personal loan in the medium -future, do not pay down your mortgage. Save that money for a rainy day.
Absolutely agree here. Mortgage interest rates are the lowest of any type for borrowings, so unless you have a serious rainy day fund accumulated, it makes no sense to cripple yourself overpaying a mortgage to then have to take our personal loans at 3 times the interest rate cause you’ve no money left.
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30-04-2021, 10:40   #17
PokeHerKing
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Originally Posted by A Tyrant Named Miltiades! View Post
No I certainly do not overpay my mortgage and whenever this question comes up, I find myself getting very mad at Eddie Hobbs, who used to go around telling everyone to overpay their mortgage.

If you are already very rich, then overpay your mortgage. Most of us are not at all rich.

Like most mortgage owners, I don't have a big rainy day fund sitting in a bank account, so comparing savings vs lending interest rates is purely theoretical in the first place.

If I put all my money into my mortgage, however, i will inevitably need a personal loan sometime in the future, or run up a big credit card debt. Have you seen the rates they charge?

Keep your money. Pay at the agreed rate. If you are likely to need a personal loan in the medium -future, do not pay down your mortgage. Save that money for a rainy day.
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.
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30-04-2021, 10:40   #18
Irishder
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Have a tracker rate of 0.9% above ECB, cheapest loan i will ever have so in no rush to pay it off would rather invest any spare cash i have or avoid taking out higher interest loans such as credit cards, credit union etc.

Should only overpay your mortgage if you have no other loans outstanding.
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30-04-2021, 10:40   #19
bazwraf
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Originally Posted by super1290 View Post
so if your on fixed rate and have DD coming out every month. how do you do the overpayment every month? by telephone and pay by card? or what.
I rang Ulster Bank, and they gave me an IBAN that I used to setup a Standing Order. Can cancel/amend whenever I want
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30-04-2021, 10:41   #20
Kerry25x
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Nope, probably should though since my repayments are so low anyway, I'll get it down to €480 a month after my next mortgage provider switch.

Planning to upsize in the next year or 2 so doesn't really seem worth it to be overpaying now.
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30-04-2021, 10:41   #21
bazwraf
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Originally Posted by PokeHerKing View Post
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.
This is the most important post in the thread
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30-04-2021, 10:41   #22
SteM
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Originally Posted by super1290 View Post
so if your on fixed rate and have DD coming out every month. how do you do the overpayment every month? by telephone and pay by card? or what.
I know that KBC have a form that you need to fill in and send back.
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30-04-2021, 10:41   #23
Mimon
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Originally Posted by mrcheez View Post
You generally fix it with the bank... discuss the options. You might need to wait until your current fixed rate ends and then set it up at a new rate per month.
With Bank of Ireland I rang them after a couple of months of starting the mortgage and they changed my payments to reflect the max overpayment straight away.

Would just ring the bank and ask.

Just signed up to a ten year fixed, must ring to make sure I still will be overpaying the max.
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30-04-2021, 10:43   #24
eviltwin
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We got a 25 year mortgage but the plan was always to pay it back as quickly as possible. We were lucky to get a small mortgage before prices went mad while both on low pay, since our earnings have increased he pays the extra mortgage and I put my extra into the credit union so we have savings if the worst were to happen. My mortgage will hopefully be paid off next year, we have no other loans or debt.

Last edited by eviltwin; 30-04-2021 at 12:09.
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30-04-2021, 10:46   #25
Mimon
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Originally Posted by bazwraf View Post
This is the most important post in the thread
Depends on the size of the mortgage/monthly repayment?

I have a small mortgage and by overpaying will be have it repayed in 15 years vs the 20 originally scheduled.
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30-04-2021, 10:48   #26
Paul_Mc1988
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Originally Posted by screamer View Post
Absolutely agree here. Mortgage interest rates are the lowest of any type for borrowings, so unless you have a serious rainy day fund accumulated, it makes no sense to cripple yourself overpaying a mortgage to then have to take our personal loans at 3 times the interest rate cause you’ve no money left.
But why would you have to take out the loan. I over pay by €1500-€2000 a month. If I want to buy something in the future I would just stop overpaying and save for a few months buy the item then start overpaying again.


Having saving with little to no interest is way worse than paying off your mortgage saving thousands
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30-04-2021, 10:52   #27
cheekypup
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I've been paying about €100 a month extra, started a few years ago, I review it every year and the amount may change depending on circumstances at the time. I have 12 years left but if I can keep the payments up I hope to be finished 20 to 24 months earlier, roughly calculated.
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30-04-2021, 10:53   #28
SteM
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Originally Posted by Paul_Mc1988 View Post
But why would you have to take out the loan. I over pay by €1500-€2000 a month. If I want to buy something in the future I would just stop overpaying and save for a few months buy the item then start overpaying again.


Having saving with little to no interest is way worse than paying off your mortgage saving thousands
TBF, a 'rainy day' fund is money that you would usually need in a hurry imo. Saving to get that money might not feasible.
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30-04-2021, 11:02   #29
jj880
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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.
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30-04-2021, 11:03   #30
Feisar
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Surplus money would be better in a pension I would have thought?
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