Overpaying SVR mortgage -Presume it's still a good idea

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Newbie!

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Hi, I've gone back to work so we have more disposable income than we are used to. I find it's disappearing on nothing and with interest rates still so low, I wonder is it worth just putting a couple of hundred off our mortgage every month? We have a split mortgage with approx 60% on a tracker of 2.95% and the remaining 40% on a SVR of 4.7%. Whilst I'd like to save also, we can afford to pay down the mortgage also. Is there any reason not to do this right now?
thanks.
 
Newbie! said:
and the remaining 40% on a SVR of 4.7%.
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Can you not fix at a lower rate?

If not, you will not get a better return than paying off a mortgage of 4.7%. It's probably the best idea for you but without a picture of your wider financial circumstances it's hard to be certain.
 
Why is the mortgage split like that? Was it part of a restructuring after repayment problems/arrears?
 
NoRegretsCoyote said:
Can you not fix at a lower rate?

If not, you will not get a better return than paying off a mortgage of 4.7%. It's probably the best idea for you but without a picture of your wider financial circumstances it's hard to be certain.
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To be honest I'm not sure, we're with KBC and presume we are not going to any good deal as KBC will be withdrawing shortly? What else do you need to know about financials? thanks.
 
As mentioned above you should first try to get that 4.7% down, perhaps by fixing at a lower rate. I don't know how the KBC situation impacts this but I'm sure that it's covered in other threads. After that, assuming that you have no higher cost debts, you don't need the money for something else essential and you are already maximising your pension contributions, accelerating the mortgage repayments (especially the highest rate part) probably makes sense.
 
ClubMan said:
As mentioned above you should first try to get that 4.7% down, perhaps by fixing at a lower rate. I don't know how the KBC situation impacts this but I'm sure that it's covered in other threads. After that, assuming that you have no higher cost debts, you don't need the money for something else essential and you are already maximising your pension contributions, accelerating the mortgage repayments (especially the highest rate part) probably makes sense.
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Thank you. I'll revisit the interest rate to see if there's any negotiable space.
 
I spent the weekend reviewing our pension, savings and mortgage. Our current mortgage is approx 260k (LTV ~60%). Approx 70% of that mortgage is on a tracker for 2.2% and the remaining 30% is SVR for 3.9% (not 4.7 as previously suggested). We'd like to review the SVR rate but do you think we're limited to KBC? If we moved elsewhere I presume we'd lose our tracker and any savings on the SVR rate would be negated by the loss of the tracker. Anyone any thoughts?
 
Newbie! said:
Our current mortgage is approx 260k (LTV ~60%). Approx 70% of that mortgage is on a tracker for 2.2% and the remaining 30% is SVR for 3.9% (not 4.7 as previously suggested).
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Avant have options in and around the 2% mark which looks best for you.

If you move you lose your tracker, but +2.2bps is not a very good tracker rate!
 
@Newbie! If you can, you should switch to Avant's 1.95% rate, fixed for up to 7 years. They will give you €1,500 cashback if you start the switch before the end of March (provided you use a broker who is an Avant "Gold Partner").
 
NoRegretsCoyote said:
Avant have options in and around the 2% mark which looks best for you.

If you move you lose your tracker, but +2.2bps is not a very good tracker rate!
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I know the tracker isn't great. We were penalised when we moved house. I know nothing about Avant :oops: ...who are they? Are they reliable etc?
 
@Newbie! Avant are newish in the Irish market – they are backed by Bankinter from Spain.

Avant and ICS have similar rates but only Avant has the time-limited cashback offer I mentioned.
 
Paul F said:
@Newbie! Avant are newish in the Irish market – they are backed by Bankinter from Spain.

Avant and ICS have similar rates but only Avant has the time-limited cashback offer I mentioned.
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Thanks Paul. Have contacted both now so will see what happens.
 
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