Will I get a discount if I increase my repayments on my tracker?

I have a tracker mortgage with 193,000 outstanding on it. A friend mentioned that if one pays more than the amount committed to each month (approx. 1,500) off a mortgage e.g. an extra 1,000 that the mortgage will be reduced by more than this extra 1,000.

I hope to sell and downsize but probably won't get another mortgate at my age 58 so am trying to find a way that ensures I have the most money at the end to purchase a smaller place.
Would welcome advice.

Hi Marni

ptsb offered an additional 10% on lump sum repayments for a limited period.

But no lender is currently offering what you are suggesting.

The benefits of downsizing will be significantly reduced by the loss of your tracker if you have to borrow a similar amount at SVR.

If you want to give us the details of the proposed move, we could comment further.

Value of current home
Cost of new home
Current mortgage rate expressed as ECB + x%

Brendan

Your friends comment is probably the general point that if you pay off your mortage earlier, you may less interest, as you are borrowing the money for less time.

However, its not always a simple as that. you need to look at the reality of your current situation to decide what to do.

If you have €1000 to spare every month, the simplest and best thing to do with the money is save it. You might get a higher interest rate than the interest you would save off your mortgage and money will be available for you when you decide to downsize.

If you dont think that you will get another mortgage, are you hoping that the equity you release when you sell your home will be ebough for you to buy another smaller, cheaper home, If so, more savings will help this.

When do you intend to sell and how much equity do you think there is in your home ?

Hi Brendan and Huskerdu,
Thanks for your replies. I will get back to you with the further information required.
Marni