Banks are cunts.
Banks are useless cunts.
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Bastards
AIB now allowing an overpayment of up to âŹ5,000 per year for those on fixed rate mortgages. Good for those that locked in at the 2.15% green rate last year.
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As long as the pension is maxed out etc etc etc
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Weâre gonna get means tested bro for the statey
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Was just coming on to mention same - is this something we should be doing? Throw âŹ5k a year (or if not as much as you can near that figure) in top ups to the mortgage (with no penalty). It feels like a good thing to do, is there a catch here?
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I re looked at it and it doesnât change your term just your monthly repayments slightly if paying in one year. Need to do more sums but anything reducing the principal quicker should be a good thing
@gilgamboa usually a good man for that
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No catch always a good thing to pay off debt as quickly as you can I spose. The only catch if you want to call it that is if you needed the money in a hurry again you wouldnt be able to ask them for it back and youâd have to borrow it from them at a much higher rate
iMO though youâd get a far better long term outcome from putting that 5k into your pension if you could and getting the tax relief etcâŚand youâd surely do better than the mortgage rate over the next 20 years with it
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I personally would pay it down as much as possible until itâs a manageable sum. You can remortgage if you want quick money in the future, and it really is liberating.
If youâve a reasonable pension anyway, Iâd be inclined to. I always did a d donât regret it.
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I think thatâs solid advice but it is a mindset decision over a mathematical decisionâŚback of a fag box id say overpaying 5k off mortgage now (from after tax earnings so 10k of your salary) gives you about 6k in interest savings and 5k less of a mortgage balance
Using the 10k of your salary to pay into pension costs you roughly the same as above you have 22k of value
Assuming for both 20 years left on mortgage and pension and same rate for both
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And a lot of people use the tax free lump sum from their pension to pay off the mortgage balance - I see what youâre saying
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Good advice.
The mortgage is as cheap a money as youâll borrow anyway.
Load the cash into a pension if possible.
All depends on your personal circumstances but if your mortgage rate is around 3% or less youâre better off maxing your pension contributions until that fixed rate expires.
This is in no way a political statement or financial advice but Iâd suspect the current generous (relative to the UK) pension deductions would be at risk with a Sinn Fein government so might be best to take them while you can.
The pension deductions are currently, literally, literally free money.
Time in the market vs timing the market etc.
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When you say the current pension âdeductionsâ, i presume you mean the pension tax breaks by ploughing money into one - example at upper rate 40% put in 10k and real cost to you is 6k, the other 4k comes off your tax bill. Is this what youâre refereeing to by âdeductionsâ or are you alluding to something else?
Great advice above from a few of ye - I max out on pension contributions each year so understand that is a better investment but think I will top up on this 5k penalty free allowance to pension too while the goingâs good and Iâm still on a fixed for another two years.
Yes. You should be able to get the extra âŹ4k out of your pension either tax free or at 20%. Unless you end up with a quite a large pot.
I didnât think anyone would ever really be disappointed to be paying down their debt early and I do myselfâŚbut it just may not be the absolute best use of your cash. There is enough of it going on tax so every avenue available to take advantage of tax rules is important
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And inflation is making the relative value of the debt smaller
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Youâre presuming a bit that
1 the pension pot is a one way bet
2 the pension pot doesnât become exposed to a taxation change moving forward
But basic maths would suggest pension indeed.
I doubt sub 3% mortgages will be available any longer as fixed rate deals run out.
Are any of you guys regulated by CBI?
Seriously.
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If any of these lads are chartered accountants and giving out pension and investment advice they could find themselves in very hot water.