I’ve seen this touched on in a couple of threads, but haven’t found a definitive answer.
In a position to pay a lump sum off our mortgage. Looking at ~€50k. Currently in a fixed term, but checked with bank today and was told penalty would be negligible.
I’m trying to figure out whether to reduce term or monthly repayments. Having used Karl’s Mortgage Calculator there seems to be an €80k overall savings swing in favour of reducing term. How exactly does that work?
If I was to reduce repayments I would also continue to overpay by 10% monthly, which would be close to my current amount.
This question comes up in a variety of ways and the threads often go off topic with irrelevant calculations. The interest charged each year is exactly the same - we will return to this. Reducing the repayment is simply reducing the payment you are contractually obliged to make under your...