26-04-22………..
The threat of higher interest rates and a desire to clear her mortgage early prompted a Dublin woman Sandra Chubb to take action earlier this year.
Ms Chubb, from Ballyfermot, Dublin, has had arthritis since childhood.
This has necessitated five hip replacements on her right side. Adding to this, she fell over her dog last summer and has had to get a plate and eight pins inserted into her leg.She is worried that if her condition deteriorates she might have to give up her job as an administrator for a construction company.
So when she came to the end of a two-year fixed mortgage with Permanent TSB she vowed to get a better rate and see if she could accelerate payments to clear the home loan early. Ms Chubb, who is in her 40s, said: “I want to get rid of the mortgage in case anything happens down the line. “I want to get it finished and enjoy life. And if I can give up work earlier than originally planned then happy days.”
Having come to the end of a fixed rate with her Permanent TSB mortgage, she was on a variable rate of 3.4pc. Aware that she could do better, Ms Chubb was also conscious that it is likely to go up even more when European interest rates rise.
So she decided now would be a good time to lock in to a lower fixed rate.
With the help of her broker Moneysherpa.ie, she switched her €110,000 mortgage from Permanent TSB to Avant Money in January. She got a 2.01pc seven-year fixed rate from Avant Money.
This meant big monthly savings on her mortgage. Ms Chubb was paying €640 a month with a Permanent TSB. The switch to Leitrim-based Avant Money meant she cut this to less than €560 a month. This meant she was able to cut her home-loan payments by €80 from the move. But she decided that she wanted to go further and take the opportunity to pay more a month so she could cut the term of her mortgage.
After reviewing the situation with her mortgage adviser, she realised that she could reduce the period of her mortgage through her new lower rate and an increase in her repayments to €900 a month to her new mortgage provider. This has meant she is in line to cut her mortgage term from 21 years to just 12 years. “I am paying more money so I can reduce the term of the mortgage,” she said.
Mark Coan of Moneysherpa.ie estimates that switching to a lower rate and reducing her mortgage term will save her more than €30,000 in total over the course of the mortgage term. Asked if she considers herself savvy having pulled off such a deal, Ms Chubb joked: “I look for deals, but I am good at spending money as well.”
Whether you are looking to switch lender currently, a first time buyer or moving home, should you have any concerns about the issues raised in this article, or investing in a buy-to-let property, why not chat to a Seaspray Mortgage adviser today about finding the mortgage that’s right for you:
tel.+353 83 099 0442 or email john.finnamore@seasprayfs.ie
EON
Seaspray Financial Services Ltd trading as Seaspray Mortgages is regulated by the Central Bank of Ireland with registered number C165527
Source:
This content is taken from a previous article published by independent.ie on 26-04-22,written by Charlie Weston (Independent.ie)
