Reduce mortgage or invest?

  • Thread starter tarmactester
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tarmactester

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Age: 32
Spouse’s/Partner's age: 31

Annual gross income from employment or profession: 62K
Annual gross income spouse: 32K

Type of employment:-Telecommunications (software)
Risk level of employment:- High
Spouse Type of employment - Pharmaceutial
Spouse risk level of employment:- Low

Expenditure pattern: In general are you spending more than you earn or are you saving? Saving.

Rough estimate of value of home:- 325K
Mortgage on home: 47K,
Mortgage provider: AIB
Type of mortgage: Tracker
Interest rate: 4.95%

Other borrowings – None

Do you pay off your full credit card balance each month? Yes
If not, what is the balance on your credit card? N/A

Savings and investments:
2 accounts with Rabodirect, both @ 10K
Another 11K in two other accounts, though much of this earmarked for DIY projects that the wife won't let me put off any longer garage/garden/kerbing/tarmac etc.

Do you have a pension scheme?
Two pensions, both with AVCs (mine @ 14%, wifes @ 5%)
Mine at the higher rate as I lost a few years of pension earlier one due to redundancies (dot-com bust etc.) so trying to make up a bit of lost ground.

Do you own any investment or other property?
Currently none.

Ages of children: 5 month old daughter.

Life insurance: Yes, based on reducing mortgage balance.


What specific question do you have or what issues are of concern to you?

1. Wifes maturnity leave ends shortly. Toying with the idea of one of us quitting work to stay at home. My job is more stressful and is less secure than wifes, also as we are in Midlands chances of me getting a similar job down here are zero, would have to travel to Dublin(no thanks). Wifes job is more secure long term but pays much less. Any thoughts?

2. Related to the above, would it be sensible to try to clear mortgage early, even if this meant using savings, i.e. if out monthly expenses are significantly two incomes would not be as necessary.
 
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