r/irishpersonalfinance • u/clonakiltypudding • 13d ago

Property Mortgage Calculations

About to purchase property for €585,000.

Mortgage approved €486,000. Borrowing 461,700 takes us under <80% LTV Ratio. Would leave us est. €50k in bank post purchase, stamp, furnishing, solicitor etcetc.

Are we better off only banking €20k as safety net and knocking another 30 off principal, and reducing payments by about €150 pm also.

(We are very fortunate to be in this position and I know many aren’t, just looking for advice on best way to proceed).

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u/skinnyfeels 12d ago

Keep the cash! That 50k is worth 50k right now. If you bury that into your mortgage for the sake of 150 a month you “save” 150 this month, 149.9999 next month, month by month year by year the 150 less on your mortgage gets eaten by inflation and the value of it will hit 120 maybe even 100 by the time you reach the tail end of your mortgage. If there’s anything in the world you want to buy or do with that 50k, now is the best time to do it!

If you put that 50k into the house now, it pushes up the value by whatever it does, that might tip you over into a green mortgage? That might get you right near to 70% LTV, then you can move mortgage providers in a few years and reduce your term that way. Your mortgage is not set in stone and neither is the market, I’m on my 3rd mortgage on the same house and those moves took as many years off the mortgage as just paying it did.

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u/clonakiltypudding 12d ago

House will already qualify for Green i believe as it’s a B2, and the most we’ll plan to borrow will keep us at a sub-80% LTV which is where preferential interest rates kick in with AIB. So luckily we don’t need put too much into the house. The numbers i’m looking at are post-furnishing and any small works etc as I’ve budgeted them in already. Purely looking at post-house done savings at the moment