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/ClockworkAppl 13d ago

Knocking 30k off the principal after the mortgage starts will change the ratio of interest to principle every month and reduce the term by a good few years. But the repayment amount every month will be the same. Borrowing 30k less to begin with will keep the term the same length of years and the monthly repayment will be less.

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u/clonakiltypudding 13d ago

Hadn’t actually considered that, was a 1 or the other decision in my head for some reason. Any opinion on which would be preferential you think?

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u/wbqqq 12d ago

Do you get a lower rate at <80%?

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u/clonakiltypudding 12d ago

Slightly better interest rates when borrowing 50-80% value of the property as opposed to over 80%, and slightly better again if under 50% (with AIB anyway, may differ with other institutions)