Mathematicians please help…..
I will be borrowing 100,000 Euros soon for an extension. This money will come from topping up three buy to let mortgages. I will be repaying this debt interest only at ECB + .75% which is 5 % currently. This will be 417 per month. 5,000 per year.
I do not intend to use this money to extend until I am comfortable with ECB rate trends and the way the economy/my job is going. Therefore I will wait approx one year from now.
The 100,000 will be placed in: 2 x First active 5.22% accounts at 14,500 in each, 2 x Anglo Irish Bank premium demand at 5.3% and 20,000 in each and the remaining 31,000 in 1 Northern Rock account at 5 % and from there will be drip fed at 1,000 Euro per month into:
2 x Anglo Irish 8% accounts
2 x Irish Nationwide at 7.6%
2 x EBS at 7.5%
2 x first active at 7.15%
(2 x ) (reflects 2 accounts one for me and one for my girlfriend)
Assuming these rates remain for one year from now ( I am sure another product will replace them when these rates expire) is it possible to earn more on the savings when accounting for DIRT than the cost of the mortgage top ups which will be 5,000 per year.
Will be grateful if anyone is able to work this one out !!! I am curious if you can earn more on savings than it costs to borrow the money??
I will be borrowing 100,000 Euros soon for an extension. This money will come from topping up three buy to let mortgages. I will be repaying this debt interest only at ECB + .75% which is 5 % currently. This will be 417 per month. 5,000 per year.
I do not intend to use this money to extend until I am comfortable with ECB rate trends and the way the economy/my job is going. Therefore I will wait approx one year from now.
The 100,000 will be placed in: 2 x First active 5.22% accounts at 14,500 in each, 2 x Anglo Irish Bank premium demand at 5.3% and 20,000 in each and the remaining 31,000 in 1 Northern Rock account at 5 % and from there will be drip fed at 1,000 Euro per month into:
2 x Anglo Irish 8% accounts
2 x Irish Nationwide at 7.6%
2 x EBS at 7.5%
2 x first active at 7.15%
(2 x ) (reflects 2 accounts one for me and one for my girlfriend)
Assuming these rates remain for one year from now ( I am sure another product will replace them when these rates expire) is it possible to earn more on the savings when accounting for DIRT than the cost of the mortgage top ups which will be 5,000 per year.
Will be grateful if anyone is able to work this one out !!! I am curious if you can earn more on savings than it costs to borrow the money??