Please do move this post if I'm in the wrong section.
I have been beating my head against Jeacle's mortgage calculator to no avail.
Five years ago, in 2009, I borrowed 260,500 over 25 years @ 3.7% (then), monthly repayment of €1322.36.
Since then I have run out of the tax credits (or whatever it was called - I was only paying €11xx.xx per month at the time of the commencement of the mortgage). My actual repayments rose to 1409.46 pm, due to interest changes and ending of tax relief.
The mortgage runs until I'm 75 (I'm self-employed), and I have become increasingly concerned about this. I therefore increased my payments by 200 per month and am now paying 1609.46 pm. The letter from the bank confirming the change says that "based on the interest rate currently prevailing (4..58%) the remaining term on your loan is 16 years" - that's till I'm 72 - "If the interest rate changes, naturally the number of payments required to clear the outstanding balance will also change."
A couple of questions: that's not actually reducing the term of the loan, is it? I'd like the possibility of reducing the amount at some stage as the higher amount is quite difficult at the moment.
Secondly, I have about 12K available to me and I could put *half* of this into the mortgage account. Half only because this is the whole of my savings, I still have a child semi-dependent and I want some emergency funds for just-in-case. Should I pay the 6K into the mortgage? What would it do to reduce monthly payments or the term of the loan?
I have been beating my head against Jeacle's mortgage calculator to no avail.
Five years ago, in 2009, I borrowed 260,500 over 25 years @ 3.7% (then), monthly repayment of €1322.36.
Since then I have run out of the tax credits (or whatever it was called - I was only paying €11xx.xx per month at the time of the commencement of the mortgage). My actual repayments rose to 1409.46 pm, due to interest changes and ending of tax relief.
The mortgage runs until I'm 75 (I'm self-employed), and I have become increasingly concerned about this. I therefore increased my payments by 200 per month and am now paying 1609.46 pm. The letter from the bank confirming the change says that "based on the interest rate currently prevailing (4..58%) the remaining term on your loan is 16 years" - that's till I'm 72 - "If the interest rate changes, naturally the number of payments required to clear the outstanding balance will also change."
A couple of questions: that's not actually reducing the term of the loan, is it? I'd like the possibility of reducing the amount at some stage as the higher amount is quite difficult at the moment.
Secondly, I have about 12K available to me and I could put *half* of this into the mortgage account. Half only because this is the whole of my savings, I still have a child semi-dependent and I want some emergency funds for just-in-case. Should I pay the 6K into the mortgage? What would it do to reduce monthly payments or the term of the loan?
Last edited: