Switch mortgage & pay off lump sum or pay off altogether

keving1989

Registered User
Messages
53
Hi guys.
Looking to get some advice / feedback in relation to parents (early 60s) mortgage as to what is the best strategy considering the choices they have on hand.
Currently have 6 years left on the mortgage (15 year taken out in 2011) from BOI, for some reason unknown to me the mortgage is both fixed and variable with different sums of money outstanding on each.
Variable rate: 4.050% with €52k left
Fixed rate: 3.300% with €43k left

These figures are from December so obviously there would be a few thousand paid since, however the rates are still the same.
Quoted €150 to break the fixed rate back a few months ago which according to the BOI employee changes from day to day.
Also paying €77 per month for mortgage protection / life insurance from BOI which covers a lump sum payment on the death of either person. (seems crazy high to me)

It has come to my attention that parents have a total of €250k spread across multiple bank accounts basically in liquid cash returning pretty much zero per cent every year. What is the best options to do with such a high sum of money gaining nothing in relation to the outstanding debt on the mortgage.

(*) Switch mortgage or even switch multiple times in order to receive cashback along the way and then pay off a lump sum / entire mortgage altogether. Cant remember the exact figure but was quote €1000 or 1500 from solicitor for switch, but he did not give any other details if that fee included vat and all the other fees associated with switching.
(*) Pay off mortgage entirely using excess cash savings without considering switching or availing of any cashback offers. Which would save us 1000s in interest in the long run plus no longer having to pay for mortgage protection insurance every month.
Both have pensions with one of them having a nice sum of money to cover for future needs so they should be covered in that respect.
Would appreciate some feedback on the above for whats the best plan going forward and possibly any other options I have not considered as well.
Thanks.
 
Last edited:
I don’t think it’s worth the hassle of switching. The best would be €3000 from kbc.

Just redeem the mortgage..

You can’t assess the €77 without knowing the cover and the health of your parents, but it probably should be cancelled
 
I'd just pay it off, and forget about it. Yes, you could net 1k each switch. It'd take you a few months to do a few switches, and you'd have paid a grand or 2 Interest in between.
Plus, they're already in their 60's - there's extra hoops to jump through to get approval in the first place, so no guarantee they'd be able to switch to every bank.
 
I would recommend that your parents clear the mortgage given that they have the cash to do so from their savings.
 
Mortgage protection pays out when the insured life dies whether or not there is a mortgage

So paying off the mortgage does not change that

You need to find the sum assured.

But if your parents are in good health it’s very unlikely to be worth it unless the sum assured is huge.
 
Back
Top