A
We're at 5.5 fixed with PTSB at the moment. This is up in July .
from news reports we will have no choice but to go with their variable from then on
Other loans: Car loan (me) 350 p.month Car loan (partner) 550 p.month
On an income of circa 70K a year cannnot understand the reference to being able to afford one child.
So, can you pay off some capital if you want to? PTSB may well impose an early repayment penalty. It's worth asking them as they are desperate for cash and may waive the penalty.
What happens then is determined by your mortgage agreement, and not by news reports. Many fixed rate mortgages had a price promise. It's possible that you will be put onto a tracker mortgage. Check it out before making a capital repayment. If you have a cheap tracker, then you are probably better off keeping the money on deposit.
Brendan
Generally the thing to do is pay off the highest rate loans first. Credit cards followed by overdrafts followed by unsecured personal loans followed by car finance. Mortgages come after these.
If you used the money to pay off your car loans then you'd have ample room to soak up increases in mortgage rate.
According to drcalculator.com 289k is 1640 pm @ 5.5% (relief and exact calculations aside). You'd need mortgage rates to increase to by 4.5% (i.e. to 10% which = repaymtns of 2540 pm) to swallow up that 900 pm your paying on your car loans.
Unless of course you've some super special offer car loan rates below 5.5%.
Everyone seems to have missed the elephant in the room in their responses.
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