Brendan Burgess
Founder
- Messages
- 52,118
UB allow 10% of balance at start of year to be repaid within that calendar year.I don't want to fix as I want to overpay my mortgage or pay lump sums off it?
This is a real dilemma with all lenders. The best value is in fixed rates.
It's probably worth fixing now anyway. It's likely that the break fees for overpayment will be quite low.
We want to the same thing. Fix for 5 yrs and are currently on a 2 yr fixed until September. I am just wondering should we fix now or just wait until September?I'm out of 2 yr fixed in June, LTV 65%, just over €250k left, have now fixed for another 5 years 2.2% with UB. Best + easiest option for me.
Am I overpaying too much if planning to sell in 5-7 years?
The plan would most likely be the buy/sell dance but I've not thought that far ahead yet to be honest! Good to know though that paying more now is the right move, difficult to balance when you hear about inflation, cheapest money you'll ever get etc.If you expect to be in a position to buy your new house and retain your old house, then it might make sense to build up the deposit of 20% needed to buy the new house. By "retaining your old house" I don't mean retaining it forever. It's just much easier to buy a new house, move in and then sell your old house.
If you have to sell you existing house to buy a new house, then paying down the mortgage as much as possible is the best financial plan.
As your plans are uncertain, I think you are right to pay your mortgage down as much as possible. If your plans harden, then you can change your payment plan accordingly.
Brendan
Commission based so I wouldn't be too confident in cutting the term of the mortgage. In addition, I like the flexibility of being able to revert back to the lower payments if needed (eg. should my partner and I both lose our jobs at the same time.If your income is fairly reliable and predictable so that you know that you can afford to pay €1,700 a month, then cut the term of your mortgage so that the scheduled payments are higher.
The downside is that you won't be able to "underpay your mortgage" but you will have more scope to overpay.
What break fee have you been quoted?
You can fix for 5 years at 2.2%
That would save you .45% of €270k per year or €1,200 in the first year.
Or you could fix for 2 years at 2.25% .
Commission based so I wouldn't be too confident in cutting the term of the mortgage. In addition, I like the flexibility of being able to revert back to the lower payments if needed (eg. should my partner and I both lose our jobs at the same time.
I've not looked into breaking yet as I'm only around 17 months into the mortgage. If I fixed elsewhere where at 2.2% (where would this be?) would I still be able to overpay by the amount I'm overpaying?
Oh right - so I can break a current UB contract and then sign back on with them for 5 years at 2.2%?! Not a 'new customers only' type deal?The 2.2% is an Ulster Bank rate.
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