I have just got a redemption figure for my mortgage of €131,490.76 with additional interest €16.57 per day extra. My husband has, in savings, the full amount due. Would we be best to redeem the mortgage or invest his savings?
Interesting question - has anyone looked at this situation taking mortgage interest relief into account. If one had the cash to pay off a mortgage in total would it make sense to pay off only a portion of the mortgage such that the interest on the outstanding amount hit the ceiling for mortgage interest relief. What you are left with is the equivalent of a cheap(er) loan? If the mortgage was then moved to interest only and the capital sum invested the hope would be to get a return greater that the cost.
I know all of the talk about borrowing to invest and investments can go up as well as down but has anyone done the maths around the ideal amount to leave outstanding so as to hit the relief threshold as closely as is possible? and the effect this has on the net (real) interest rate on the amount outstanding?