We are on a tracker mortgage for the next 25 years. We have some savings and we re thinking of paying off a bit of the mortgage. We were hoping to pay off 5 years off it. Will we get caught for paying the internet owed on those 5 years? Would we lose out tracker if we pay some off?
Paying off mortgage
- Thread starter Donaoib
- Start date
Brendan Burgess
Founder
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1) No you won't lose your tracker if you make a capital repayment on your mortgage.
2) You don't pay "5 years off it". You make a capital repayment and you can choose whether to shorten the term or reduce the monthly repayment.
3) If you owe €100k today at 1%, you are paying €1,000 interest.
If you pay €20k, off it, you will reduce the interest charged to €800.
So no you don't get caught for the interest owed.
Brendan
2) You don't pay "5 years off it". You make a capital repayment and you can choose whether to shorten the term or reduce the monthly repayment.
3) If you owe €100k today at 1%, you are paying €1,000 interest.
If you pay €20k, off it, you will reduce the interest charged to €800.
So no you don't get caught for the interest owed.
Brendan