I currently have a mortgage of €248000 at 2.2% fixed until 2027 with PTSB (originally Ulster Bank). I have a public sector pension. We currently overpay the mortgage by €1000 per month. This is not our forever home and will likely trade up in 4-5 years or so.
I liked the idea of overpaying my mortgage as a risk free tax free savings scheme essentially and to build equity in the house so that when it comes to sell we will have a larger deposit for the next house.
However, now that deposit interest rates are rising and with rates of 3.5% from some providers via Raisin ( net about 2.3% after DIRT) I'm considering stopping my overpayments and instead putting my money on deposit. This would give a slightly better return and also have the advantage of not being tied up as equity when it comes to trading up. In addition if an emergency was to happen I could access this money. Another option I was looking at is government bonds but I'm less clear on how this would work.
Has anyone else made a similar change to their overpayments recently?
I liked the idea of overpaying my mortgage as a risk free tax free savings scheme essentially and to build equity in the house so that when it comes to sell we will have a larger deposit for the next house.
However, now that deposit interest rates are rising and with rates of 3.5% from some providers via Raisin ( net about 2.3% after DIRT) I'm considering stopping my overpayments and instead putting my money on deposit. This would give a slightly better return and also have the advantage of not being tied up as equity when it comes to trading up. In addition if an emergency was to happen I could access this money. Another option I was looking at is government bonds but I'm less clear on how this would work.
Has anyone else made a similar change to their overpayments recently?