Pay off mortagage? advice needed.

[legend]

all,

just looking to confirm my own thoughts.

currently have 2 mortgages outstanding on PPR

1. owe 52,000 - standard variable @ 5.5 % approx € 700 per month
2. owe 182,000 - fixed until Dec 08 @ 3.5 %

I have approx 100,000 in various deposit accounts and am thinking of paying off mortgage #1 ( which was for site), current value of PPR approx 500,000. as my wife is going to go P/T.

what do you think ?

 

[therave]

i would pay off the 52k from the cash i have and hold tough with the balance to see how the P/T owrks out for the wife.. she might want to stay home full time and it would be good to have the few quid tucked away fro the rainy days

 

[ClubMan]

Assuming that you have no other higher cost debts that warrant more urgent attention ... paying off the variable rate mortgage would seem to make sense. Maybe then paying off some of the other mortgage when the fixed rate period ends at the end of the year. Unless you can get the lender to reduce or waive any early fixed rate breakage fees. But the rate is very low so probably better off sticking with it. Maybe then put any spare cash into one or more of the high yield demand/term lump sum or regular saver accounts mentioned in the Financial Best Buys forum/lists.

How do you have two mortgages on a single property?

Post crossed with therave's.

 

[legend]

thanks lads,

thought as much... i'll get a redemption value today...

hopefully will be able to neg on a good rate next year as the LTV ratio should be good

Clubman, 2 mortgages as the first was taken out to buy the site in the first instance and the other was to build & fit it out.

cheers,