Should I join in?

frugalicious_2

I just posted this in the sticky - not sure if it should be there so doing a separate post.

Well I've been reading all the MFW posts & would love to join in.

Except!

I'm not sure whether it would make financial sense to do so given my current interest rate.

I'm in Ireland and my interest rate is based on the ECB so it is variable.
My mortgage has another 26 yrs and it allows for over payments online.

Mort balance: €270k
interest rate: 1.8%
savings rate: 3.5%
current repayments minus tax relief: €1014
currently overpaying: €150 pm
potential extra manual overpayments: €400 pm

The big question is whether I should join you all & focus on getting rid of the mortgage early or should I be saving the 550 in order to pay a lump sum when the ecb rates go up above 3.5%?

Any opinions? Thanks all for reading!

dimbo61

Why not do a bit of both and overpay/ save 50/50
You dont give your LTV which in the irish market can be hard to work out but the more you overpay/build up savings the better your position when rates do start to rise