Hi,
I bought an investment property for 328,000 euro last year, financed with a 266000 mortgage (tracker 3.15% initiallly over 35 years).
The repayments started at 1048 pm, and i am getting 1050 pm in rent.
Repayments are now 1130 (at 3.6%).By my calculation should rates increase by 1 full percent over the next year the repayments will be 1275 pm. and if they go to 5% it will be 1350 pm.
So i could be subsidizing the mortgage to the tune of 300 euro pm.
My question is : I have 20000 available cash and 20000 late in the year from the SSIA. should I use this money to make a capital repayment on the loan to get the monthly repayments back in line with the rent?
thanks
I bought an investment property for 328,000 euro last year, financed with a 266000 mortgage (tracker 3.15% initiallly over 35 years).
The repayments started at 1048 pm, and i am getting 1050 pm in rent.
Repayments are now 1130 (at 3.6%).By my calculation should rates increase by 1 full percent over the next year the repayments will be 1275 pm. and if they go to 5% it will be 1350 pm.
So i could be subsidizing the mortgage to the tune of 300 euro pm.
My question is : I have 20000 available cash and 20000 late in the year from the SSIA. should I use this money to make a capital repayment on the loan to get the monthly repayments back in line with the rent?
thanks