Pay off remaining mortgage.

D

discovery101

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I have moved back to my family home to care for my elderly parent and I have rented out my residence with approx 30k of a mortgage remaining.

I have the means to pay off the outstanding balance.

So is it a no brain'er to go and just pay of the mortgage?

Any advice is most welcome.
 
Probably.

For a small sum like that, tidying up your affairs is probably more important than any tax planning issue.

You might consider keeping it if you have a cheap tracker. The interest would be 1% and after tax-relief at the marginal rate, that would bring it down to 0.6%.

If it's a cheap tracker and you might trade up at some stage, then you should probably keep it too.

But overall, I think that tidying up your affairs trumps the rest.

Brendan
 
Hi Brendan.....just an update my current interest rate is 1.05%.

Also do you think they should offer me a discount if I pay the balance off early...? there is 8 years left to go on the mortgage.
 
What I think doesn't matter. They won't offer you a discount as there is such a short term left.

You can ask.


Brendan
 
Hi Brendan, I am in a fixed rate mortgage until May 2020. I am in a lucky position to clear my mortgage in full this summer. Should I clear and would I have to pay a penalty or should I reduce my mortgage by half? Just not sure what is the best way to go about this.

thanks
 
@Clare greeen......in my case i rang my mortgage HQ which was UB in Lepardstown, she said that she would send on a document to my local branch to fill out and the fact i was on a tracker there would be no penality by paying off early.....in your case with a fixed rate you may have to pay a fee but not sure on that.

I my opinion if you have cash clear your debts as money i been eaten away by inflation.

hope that helps.
 
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