Say a couple, curently on max SSIA contributions, both contribute the payamnet to their mortgage on top of normal payments:
Product Type: Average Tracker Rate
Term:20 years
Amount:€ 300,000
Existing Average Repayment:€ 1864.60/m
Total repayment over period:€ 447,505
Total Interest Over Period:€ 147,505
Effect of increased repayments of €508/mth is :
New Average Repayment : 2472/m
New Total Repayment : 399,190
Term Reduced To : 13.94
Total Interest Reduced To : 99,190
Interest saved:
=147505-99190=48315
Term reduced to:
=14y.
Anual Effect of 508e per month over payment:
=48315/14=3450pa
In effect 508 per month saves you 3450 per year. No wonder the banks want you to reinvest your SSIA in an other account. That allows them
A.retain your funds
B. Entitles them to a further 48k interest off you if you choose not to use towards your mortgage.
They would stand to lose a lot of money at the borrowers benefit.
Is there a better return out there on 508 per month? Plus the property is yours 6 years earlier.
Product Type: Average Tracker Rate
Term:20 years
Amount:€ 300,000
Existing Average Repayment:€ 1864.60/m
Total repayment over period:€ 447,505
Total Interest Over Period:€ 147,505
Effect of increased repayments of €508/mth is :
New Average Repayment : 2472/m
New Total Repayment : 399,190
Term Reduced To : 13.94
Total Interest Reduced To : 99,190
Interest saved:
=147505-99190=48315
Term reduced to:
=14y.
Anual Effect of 508e per month over payment:
=48315/14=3450pa
In effect 508 per month saves you 3450 per year. No wonder the banks want you to reinvest your SSIA in an other account. That allows them
A.retain your funds
B. Entitles them to a further 48k interest off you if you choose not to use towards your mortgage.
They would stand to lose a lot of money at the borrowers benefit.
Is there a better return out there on 508 per month? Plus the property is yours 6 years earlier.