Assume you have a choice to put €100,000 on deposit at 2.4% net (after DIRT) or to repay your mortgage early. Go to http://www.loanclc.com/ Enter the data for your existing mortgage Loan balance| €100,000 Interest rate| 2% (ECB + 1%) Period to maturity from now (not original mortgage term)| 20 years Gives a repayment|€506 How much would you have to put on deposit at 2.4% to get a repayment of €506? Click on the green down arrow on the right hand side of your previous calculation. This duplicates it on the next line. Change the rate to 2.4% Change the capital until you get the repayment of €506 which is around €96,300 So you will be no better or no worse off with a discount of around 3.7 % on early repayments. Warning This assumes that you won’t have to borrow again in the near future. If you have to borrow again at market rates, it would make no sense to repay your loan early. It also assumes that banks will continue to make deposit rates of ECB + 2.4% available for the duration of the mortgage. When banking returns to normal, it will probably not be possible to get deposit rates in excess of the cheap tracker you are paying. How long will your mortgage actually last? This calculation is based on your mortgage lasting for 20 years from now. Very few mortgages in existence today will be in existence in 20 years time. People will trade up, trade down or be repossessed. They may well inherit cash and want to pay off their mortgage. If you have the cash to avail of such a discount, then you may well be moving earlier than 20 years. Factors to take into account The security of your deposits is very important. The safest place for your deposit is to pay off your mortgage. While you have a deposit, there is always a worry that the bank may go bust. You will still owe your mortgage. If you have an interest-only mortgage, the discount would have to be higher. If you have an investment mortgage, the discount would have to be higher.