G
gert
Guest
I am fortunate to have had an NIB LTV tracker (ECB + .52%) since early 2008. Wise move to switch at the time as you can imagine... I'd be on a variable with BOI today if I hadn't.
Mortgage is currently at around €216k with "25 years" remaining. I put "25" in quotes because I've been throwing cash at it since rates fell in 2009. NIB were very flexible to allow me to pay a fixed amount of €1500 per month since rates were plummeting, and at the moment, the interest element is only around 300 per month. I've got away with it so far - I've been expecting a letter to say "we know what you're up to.. pay us only what you owe per month because we're losing money on you etc.... If rates stayed as they are today, technically my mortgage is paid in 14 years. Luxurious position to be in I know...
So the question is this - rates will go up. My wife and I have a bit of cash savings. We could probably throw 10-13k at it, and get it under the 200k mark this year. We'd have a few grand left in the bank if we did this.
I know cash is king and good to have... I've argued with friends that what I'm suggesting is a wise move. Clean bill of financial health, and a mortgage going down in no time. The house is realistically worth about 260k - I'm knocking off another 20k from what one was sold for about 5 months ago. (I paid 300 for it in 2003). Their argument is that I'm stupid to do it, as the house will never be worth that again (which I disagree with... think 15 years time...). They would also be of the "let the bank suffer" mentality. I'm of the "I won't have a mortgage when I'm 46" mentality...
We have no Credit Card debt and no car loans as we do cheap cars.
So what have others done? What would you do? And I've read all Charlie Weston's articles...
By the way I should mention as it's relevant: I do not have a pension started yet. I'm 34. I am not particularly worried about employment prospects.
Mortgage is currently at around €216k with "25 years" remaining. I put "25" in quotes because I've been throwing cash at it since rates fell in 2009. NIB were very flexible to allow me to pay a fixed amount of €1500 per month since rates were plummeting, and at the moment, the interest element is only around 300 per month. I've got away with it so far - I've been expecting a letter to say "we know what you're up to.. pay us only what you owe per month because we're losing money on you etc.... If rates stayed as they are today, technically my mortgage is paid in 14 years. Luxurious position to be in I know...
So the question is this - rates will go up. My wife and I have a bit of cash savings. We could probably throw 10-13k at it, and get it under the 200k mark this year. We'd have a few grand left in the bank if we did this.
I know cash is king and good to have... I've argued with friends that what I'm suggesting is a wise move. Clean bill of financial health, and a mortgage going down in no time. The house is realistically worth about 260k - I'm knocking off another 20k from what one was sold for about 5 months ago. (I paid 300 for it in 2003). Their argument is that I'm stupid to do it, as the house will never be worth that again (which I disagree with... think 15 years time...). They would also be of the "let the bank suffer" mentality. I'm of the "I won't have a mortgage when I'm 46" mentality...
We have no Credit Card debt and no car loans as we do cheap cars.
So what have others done? What would you do? And I've read all Charlie Weston's articles...
By the way I should mention as it's relevant: I do not have a pension started yet. I'm 34. I am not particularly worried about employment prospects.