Paying off mortgage.

jimmyd

Registered User
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My wife and I got married last year and we are in the lucky position of being able to pay off the mortgage.

The tracker mortgage is in my name and I took it out for €120k six years ago and there is €96k left on it.

We will go halfs on what is left of the mortgage and pay it off fully.

I rang AIB and they said they send put paperwork with the balance due and then to just send them a cheque for the full amount. AIB said they would then sort out the paperwork.

What happens next?

My wife then wants me to put the house into both our names with the solicitor, do we need to do up anything legal with her using her money to pay a mortgage in my name ?
 
Well done on being in such a great position. What a wonderful way to begin your married lives together. I would consult with your solicitor on all issues including your wife using her money. But I would imagine now that you are married that it won't matter too much.
 
If it is a good tracker would you not be as well to invest the money you have and drip feed into the tracker? You could be earning more in interest than you are paying.
Also seek out a possible reduction in paying off tracker early if this is what you will do. Lots of threads on both.
 
It's a good tracker but the way things are we would rather have our mortgage paid off with and not to have to worry about having money in the bank and could it be taken by the government or taxes even more.
I approached AIB a few times for a reduction but no good at all with them, they said they had a policy of no reductions when paying off a mortgage.
 
You could put your money in different banks to avoid this scenario. A cheap mortgage over 20 years is in itself a method of saving. It's also good discipline.
 
It's a good tracker but the way things are we would rather have our mortgage paid off with and not to have to worry about having money in the bank and could it be taken by the government or taxes even more.
QUOTE]

You could put your money in different banks to avoid this scenario. A cheap mortgage over 20 years is in itself a method of saving. It's also good discipline.

I would have agreed with this up until the Cyprus events. The details are still being trashed out over there but right now it looks like if you lived in Cyprus and have a 200k mortgage plus 200k in the bank, you'd be left with a 200k mortgage and 100k in the bank.
 
Before you pay off the mortgage consider carefully what if any likely borrowings you might need in say next 2/3 yrs e.g a car loan,house improvement loan. Any such borrowing will cost a great deal more than your mortgage Tracker rate.

Consider keeping a nest egg for rainy days in a high interest paying on demand account, the interest will offset that what you are paying and you have the flexibility and security of having cash available in an emergency scenario.

By all means pay off a chunk of the mortgage but keep some for reasons set out above.
 
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