Paying off mortgage- How fast?

[jeny]

Hello, Im new to this site and wondering if anyone can advise me on behalf of my father. He suffered a heart attack a few years back and since then has been working as normal but the stress and manual labour of his job has left him worn out and a shadow of the man that once was there.

I am not in a financial position tp help but i want to know how i can try and help direct or help him to pay off his morgage as quick as possible so that he can leave his job and live again. As it stands they reakon it will take about another 8 years, and its 13 until he hits retirement age but i think if he keps on the way he is he wont even make it that far.

Any sujestions or help?

J

 

[ClubMan]

There should be no confusion about how long of the original term is left on the mortgage unless there were arrears or missed payments any stage that extended the original term. You can pay a mortgage off quicker (with no penalty on a variable/tracker rate mortgage) by just making additional lump sum or regular capital repayments. See Karl Jeacle's mortgage calculator for more on this. What was the original term and amount borrowed, what is the remaining term and amount outstanding, what is the current mortgage rate and type (e.g. variable, tracker variable or fixed)? Maybe he could save money (and redirect the savings to reducing the mortgage) by switching to a cheaper lender?

 

[ACA]

Has he considered moving to a smaller property? I know that now isn't the best time to sell but, if this is affecting his health - might be worth it in the long run.

 

[therave]

HI Jeny,
all really depends on the amount of earnings against the amount left to pay on the morgtage.
also if there are some savings that can be used,what other loans are outstanding and need to be paid and if savings can be made in other areas to channel the funds into the morgtage account.
this may not be very helpful but these are the hard questions to answer first.also if he leaves the job early will he have a pension to support himself ?
times like this are hard and it is terrible to see your parents having themself under such pressure

 

[jeny]

It has been re mortgaged in the last few years hence the slight confusion over the exact term left and he also has a step up on the a/c in which he pays €x extra per month which reduces the interest and builds up as a credit on the account to be used to clear the mortgage early when it accumulates enough.

The house is tiny- 2up2down so moving smaller would mean to a caravan and not really an option.

He has some savings but is reluntant to use them to reduce the term as he likes to have a fall back just in case something happened.

They are on variable so i suppose moving to another mortgage providor might be of some help to him I shall look into it.

No other loans i know of. he is not a big spender and hates being in debt. Never missed a mortgage repayment in his life.

He has a work pension- and im sure his employer would allow early retirement based on the circumstances. I know this isint going to happen over night but 8 years is to long for him at the moment.

 

[ClubMan]

It has been re mortgaged in the last few years hence the slight confusion over the exact term left and he also has a step up on the a/c in which he pays €x extra per month which reduces the interest and builds up as a credit on the account to be used to clear the mortgage early when it accumulates enough.

The most recent mortgage statements really should clarify the sum and term outstanding.

He has some savings but is reluntant to use them to reduce the term as he likes to have a fall back just in case something happened.

In many cases it does not make sense to maintain savings while also borrowing especially if the cost of credit is significantly above the return on the savings. He should definitely consider just keeping an emergency fund of a few months worth of living expenses and using the rest to reduce his debts. I am assuming that there are no other (more expensive) debts apart from the mortgage?

He has a work pension- and im sure his employer would allow early retirement based on the circumstances. I know this isint going to happen over night but 8 years is to long for him at the moment.

He probably needs to look into this in more detail, get independent/professional advice and not assume that certain things may happen.