You can pay as much as you like off. The 10% is amount you can pay before they calculate a break fee.We can pay up to 10% extra off the principal in that time
Some posts I have read suggest taking care of the mortgage first, then paying heavily into pension when the mortgage is paid up. I'm trying to wrap my head around these different points of view. What makes you suggest a split?I'd pay a big chunk off mortgage, and massively increase pension funding
In your case, simply because you've more cash than you can put into your pension to get tax relief on.What makes you suggest a split?
Makes sense. I'm certain not having a clear grasp of why I would allocate what where has caused me to push this decision down the road time and again. Similar question to what I asked redonion, I'd love to understand why you suggest a split across mortgage/pension? Opposed to aggressively tackling the mortgage first say.I think the decision for yourself and your wife is what percentage of the disposable income to allocate to each option.
I'll need to do a little research on this. It's possibly a nice idea that I shouldn't pursue.The argument against that is you are planning a significant purchase in the short to mid term future. If you are not planning on selling your current house to fund the purchase the future house you may need the funds to secure the new mortgage or reduce the amount or term.
Could you elaborate on this? Would it not be advisable for me to start investing in an index fund long term, even if in small amounts while mortgage is still being paid down?Don't bother considering other investments whilst carrying a mortgage.
I believe it's 10% of the mortgage value over the 3 year term with KBC. What kind of savings do you think I could look into here?Can you pay 10% off the principle every year like Ulster Bank or is it 10% over the 3 year fixed term? I would ask for a break fee to see if there is any saving to be had.
How's your risk appetite?Would you have the same opinion as Easel re: other investments while still paying down the mortgage?
Could you elaborate on this? Would it not be advisable for me to start investing in an index fund long term, even if in small amounts while mortgage is still being paid down?
You are in a very advantageous financial position, at this point in your life can do both. The reason I suggest the split is twofoldMakes sense. I'm certain not having a clear grasp of why I would allocate what where has caused me to push this decision down the road time and again. Similar question to what I asked redonion, I'd love to understand why you suggest a split across mortgage/pension? Opposed to aggressively tackling the mortgage first say.
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