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, 11:07   #31
A Lamb Named Miltiades!
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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.
absolutely agree with this.

I've heard of people with no pension paying down their mortgages, which is madness. You must be absolutely clear about the tax/ savings alternatives.
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30-04-2021, 11:10   #32
begbysback
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I does be doing overpaying all the time
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30-04-2021, 11:28   #33
murpho999
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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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30-04-2021, 11:36   #34
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Originally Posted by SteM View Post
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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30-04-2021, 11:38   #35
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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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30-04-2021, 11:43   #36
TomSweeney
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Quote:
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.



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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30-04-2021, 11:45   #37
Leg End Reject
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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.
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30-04-2021, 12:00   #38
SteM
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Originally Posted by jj880 View Post
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".
Attached Files
File Type: pdf Flexi form mortgage.pdf (106.1 KB, 40 views)
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30-04-2021, 12:02   #39
SteM
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Originally Posted by TomSweeney View Post
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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30-04-2021, 12:13   #40
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Mortgages are for suckers.

Cash customers only.
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30-04-2021, 12:20   #41
pg633
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Originally Posted by Leg End Reject View Post
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.bankofirelan...ptions/#panel3
If you remortgage for a lower rate any overpayment would be locked in for sure.
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30-04-2021, 12:23   #42
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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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30-04-2021, 12:33   #43
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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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30-04-2021, 12:48   #44
Leg End Reject
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Quote:
Originally Posted by pg633 View Post
Are you sure?

'Overpayments made are not refundable'
https://personalbanking.bankofirelan...ptions/#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.
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30-04-2021, 12:56   #45
Blackjack
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Quote:
Originally Posted by jj880 View Post
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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