Just take a minute to do a quick calculation:We've been overpaying our mortgage for the last 3 years now and have amassed a sizeable credit on our mortgage account. Is there any benefit to taking this amount off the capital / principle amount?
As far as I know, the credit amount is taken into account when the interest is being calculated e.g. owe 100K, have credit of 10K, interest is calculated on 90K.
I don't think that is possible when you are on a fixed rate. You would have to check your own terms & conditions though.I'm new to the mortgage game and have a 2 yr fixed rate. Can we also pay an extra amount (put in monthly or ad hoc) and leave this overpayment there in case of higher interest rates when the fixed term ends or payment holiday needed? We are with ICS and I have no online account with them to see the mortgage balance / pay extra off. Anyone got any advice?
Does anyone know if PTSB is still offering this Current Account Mortgage, where the amount in your current account is offset against the capital on your mortgage?PTSB offer this. roll your own current account mortage if you agree it with them.
thanks for the correction-Mortgage repayment insurance. It is different from saving the money elsewhere becuase the money in credit goes toward interest calculation potentially knocking years off your mortgage.