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All about paying off your mortgage


Stock photo.

Stock photo.

Stock photo.


Q I’m going to remortgage so I can reduce my outgoings. Is there anything I should be aware of?

A Switching mortgage can save you thousands and/or cut years off your mortgage term, but the temptation is there to spread the cost over extra years. Try to avoid paying off your mortgage in old age where possible

As many face paying off their mortgage even after retiring, we look at what steps you can take to avoid this. Over the next 30 years many people expect to retire owing thousands on their mortgage.

However, this is only really the tip of the iceberg as many more will find that due to unforeseen circumstances, such as redundancy, windfalls and inheritances failing to materialise or under performing investments, they are facing this issue too.

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There are steps that people can take to either avoid the situation all together or lesson the burden before it becomes a real worry.

Think about your mortgage term

Firstly, people need to remember that while remortgaging for the full term each time they remortgage will reduce their monthly payments, it will increase the length of the loan. This might not seem to be an issue when you are thirty or thirty-five but may lead to remorse later on when you find you are still meeting mortgage payments at sixty when you would rather be saving for retirement.

Make overpayments when you can

Making an overpayment on your mortgage does hold long term benefits including a saving of €000’s on interest. See example below

Mortgage Overpayments

Mortgage of €250,000 @ 3.5% = €1,390pm

€100pm extra will clear the mortgage in 22.25yrs and save €15,611 in interest

Get help

While most people prefer not to discuss their personal finances, speaking about the issue can help. In order to do this, I would suggest that people consider getting financial advice from a regulated Financial Broker.

By Philip Cullen of Southeast Mortgages & Financial Services

This article aims to give information, not advice. Always do your own research and/or seek out advice from a Financial Broker before acting on anything contained in this article.