PTSB Buy to Let Mortgage fixed for first 3 years and payment of once off lump sum

Tomjim

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I recently took out a 20 year Buy to Let mortgage with PTSB, the first 3 years are fixed at 4.65% and then it reverts to variable.

I have a few quid hanging around at the moment and just wondering if I pay back say 2k as a once off payment, would it be worth it. This would be in addition to the monthly mortgage payment.
 
All depends on what your criteria for "worth it" are.

You'll save 4.63% on 2k. You won't get close to that in by putting it on deposit. Given you can offset mortgage interest expense against rental income for tax purposes you won't get the full benefit in your pocket.

There are a lot of factors (other debt, pension etc) that would be worth considering. For a meaningful response it might be worth posting in the money makeover forum.
 
All depends on what your criteria for "worth it" are.

You'll save 4.63% on 2k. You won't get close to that in by putting it on deposit. Given you can offset mortgage interest expense against rental income for tax purposes you won't get the full benefit in your pocket.

There are a lot of factors (other debt, pension etc) that would be worth considering. For a meaningful response it might be worth posting in the money makeover forum.
is there a possibility that the bank would penalise me if I pay the loan back too quickly?
 
There may be a break fee associated with repaying part of the loan early. The exact amount of any fee will depend on interbank rates. It could easily be zero. At worst it should only be a small percentage of the overpayment.

Beyond that there shouldn't be any additional cost.
 
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