Lender: ptsb
Loan amt: 290K (LTV about 69%)
Rate: ECB + 0.8%
Overpayments of €150
Currently there's not much spare cash & a little in savings for bills & emergencies. I have no loans & the credit card is clean.
I fear for when the interest rates start to rise and so, have just started to overpay the mortgage by €150 pm. This is my way of carrying on paying (a fraction?) of what the payments will go up to. TRS running out is also an issue. The mortgage started off around €600 more than it is now. Household income has gone down a lot since the mortgage was taken out 3 years ago. The savings are only in rabo & so not earning any more than 2% interest.
Is it a good idea in my situation to overpay like this? I would love to over pay by more so that interest rises wouldn't affect me when they come along.. should I cut things even finer & do this?
Are the rates likely to soar?
Was thinking of opening a ptsb savings account & move the rabo cash to there. Maybe I should redirect the overpayments there instead but then, when would I pay it into the mortgage?
Any suggestions? Thanks in advance
Loan amt: 290K (LTV about 69%)
Rate: ECB + 0.8%
Overpayments of €150
Currently there's not much spare cash & a little in savings for bills & emergencies. I have no loans & the credit card is clean.
I fear for when the interest rates start to rise and so, have just started to overpay the mortgage by €150 pm. This is my way of carrying on paying (a fraction?) of what the payments will go up to. TRS running out is also an issue. The mortgage started off around €600 more than it is now. Household income has gone down a lot since the mortgage was taken out 3 years ago. The savings are only in rabo & so not earning any more than 2% interest.
Is it a good idea in my situation to overpay like this? I would love to over pay by more so that interest rises wouldn't affect me when they come along.. should I cut things even finer & do this?
Are the rates likely to soar?
Was thinking of opening a ptsb savings account & move the rabo cash to there. Maybe I should redirect the overpayments there instead but then, when would I pay it into the mortgage?
Any suggestions? Thanks in advance