Irish households are sitting on combined savings of €153 billion - most of which is earning little to no interest.
Once you are confident you have the best rate possible, you should then review the overpayment options offered by your lender.If you you're on a variable rate you can overpay as much as you like without any penalties. If your lender does not allow for flexibility to overpay, Ms Hennessy said you may need to break out of the fixed rate contract."The penalty would be based on the incremental cost to the bank for you exiting the fixed contract early.
"Repayment on these terms would be €1,364 per month, with an overall cost of credit of €191,017 over the 30 years," she explained. But if a lump sum is not available, she said a smaller 10% monthly overpayment will also have a significant impact. "While the mortgage balance is high at the start of the mortgage, the proportion of interest in the repayment outweighs the capital amount you are clearing off the outstanding balance.
Ms Barrett of Mortgage Navigators said this is dependent on the interest rate on the mortgage versus the rate of return on the investment.Allocating all your disposable cash towards the mortgage repayments means you are reducing your cash reserves for emergencies or unexpected expenses.