How do I pay off my split mortgage ?

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PATRICIAMK

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I had a split mortgage with KBC €100k parked €65k now owed on active part
The mortgage has now moved to BOI im in a position due to inheritance to pay off a significant amount
Where do i start ? Should i contact BOI directly or seek advise beforehand ?
 
I suggest you do a Moneymakeover for any major decision like this

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However, if you have decided to pay it off, how much of it are you going to pay off?

The advantage of clearing the warehouse is that it will no longer be on your credit record and after a few years, you will be able to borrow again, e.g. to trade up.

The advantage of clearing the active part is that you save the interest on it. And even if it's a cheap tracker, you are paying 4% which is about €2,500 interest a year.

But if you clear the active part, it's likely that BoI will move the warehouse into the active part anyway.

Brendan
 
Then it's probably worth doing as it will begin the process of restoring your credit rating.

If you had "only" €60k I would say it wasn't worthwhile as you would still have €40k in the warehouse.

Brendan
 
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