# Coming off interest only mortgage & going back to full payment - looking for advice.



## Allegra (3 Dec 2010)

*Age *28
*Spouse’s/Partner's age: n/a*

*Annual gross income from employment or profession: *€29500
this includes child benefit and trs. 

*Annual gross income spouse: n/a*

*Type of employment: Private Sector*

*Expenditure pattern: Generally TRY to save Child benefit 150pm but always use it for something!*

*Rough estimate of value of home 300K*

*Mortgage on home €230K*

*Mortgage provider: KBC*

*Type of mortgage: interest only, VARIABLE *

*Interest rate 3.75 I THINK? Must check this!*

*Other borrowings – car loans/personal loans etc

**Credit Card :  Bal €1200*

*Do you pay off your full credit card balance each month? *No, about 20% of the balance 

*Savings and investments: none*

*Do you have a pension scheme? no*

*Do you own any investment or other property? *No

*Ages of children: age 3*

*Life insurance: *Yes

*Net Monthly Income €2440 incl cb and trs*

*Monthly Outgoings 
Mortgage €435 due to go up to 1200pm in jan*

*Credit Union:  nil*
*Overdraft: Nil*

*Creche: 40pm*

*Life Ins: 17pm*

Esb: 100pm

Oil:  100pm (direct debit)

*Sky 60pm*

*Eircom/Broadband:  80pm*

*Phone Credit: 40pm*

*Petrol:  100pm*

*Food €240pm*

*Bin:  27pm*

*House Ins:  37 pm*

*Annuals:  150pm (car ins,tax, hse/life/tv lic etc)*

Gym:  45pm


Went on interest only mortgage about 6months ago, in which time i cleared off an 8k credit union bill and any arrears i had, every spare penny went into it! 
Although my situation doesnt seem all that bad at the moment, my mortgage is due to go back up in January to 1200per month which leaves me with very disposable income in the case of emergencies!   Is there anything else you think i could cut back on! Anything else i could do?  Starting to panic a bit now!!


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## niceoneted (3 Dec 2010)

There is about €1000 not accounted for in this so where are you spending/saving this?

ESB at 100 a month is very high this is what you prob should be paying for 2 months. 

Sky could be cut to the basic package making significant saving.

There are cheaper packages for phone and broadband than Eircom - you should be able to half this.

Go through your mobile and what network most of the people you make regular contact with are on. Consider switching to that prover if they offer free calls and texts to people on the network and you will save. Consider using texts on line if it is offered with your provider.


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## Murfnm (3 Dec 2010)

I'd switch to NTL - I've got basic TV and broadband for under €60 per month.  Think they do a phone package too.


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## Allegra (3 Dec 2010)

Re:  €1000 excess

as i said, i was on interest only for 6 months, paying 435 out of 1200 so i was pumping every penny i had, about 250 per week, into my credit union loan and i paid about 8k off in 6 months.  My mortgage is going back up to 1200pm in jan, which leaves me with about 235 excess each month when everything is paid for.  I know this is enough to live on as I dont really go anywhere but theres never anything for the contingency fund!!  

Ill look into the suggestions, thanks guys! A fresh eye always helps!


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## pudds (3 Dec 2010)

> *niceoneted:* ESB at 100 a month is very high this is what you prob should be paying for 2 months.


Sounds pretty average to me, adult +3 kids.....  mine is in or around the same for 2 adults.  

The urban fuel allowance is €24 pw even if living on your own.


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## Greta (3 Dec 2010)

pudds said:


> Sounds pretty average to me, adult +3 kids.....  mine is in or around the same for 2 adults.
> 
> The urban fuel allowance is €24 pw even if living on your own.




OP has *one* kid aged *3*, not 3 kids

I think ESB at 100 is too high, considering that OP also spends 100 on oil.


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## pudds (3 Dec 2010)

Greta said:


> OP has *one* kid aged *3*, not 3 kids
> 
> I think ESB at 100 is too high, considering that OP also spends 100 on oil.




ooops....ok even with one kid..its not excessive.....*we* have oil heating too....


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## mercman (3 Dec 2010)

How about contacting your mortgage provider and reducing your Capital repayments. Would be handy if you could get a relative to go guarantor on the loan.


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## niceoneted (4 Dec 2010)

Pudds you do realise that the ESB is €100 per month thus €200 per bill. 
In the nine yrs I am in my house I don't think I ever paid over 100 in any bill. I have had up to 3 adults living in the house at times. Washing machine going, tumble drier, immersion on every day, electric showers etc. I do however have all LED and CFL bulbs in the house and all electrics switched off at night not left on standby which I think makes a big difference.


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## rescue16 (4 Dec 2010)

I am in the same boat as you at the moment. Here is what i did i changed from esb to board gais halfed my bill then got rid of eircom they were fleecing me changed to vodafone got free national call to any landline and 8gb of broadband for 40 euro a month also pay a visit to mabs they can be helpful. Also i agree with niceoneted about the bulbs and switch everything off except the fridge and oil burner and alarm clock and all lights DO NOT LEAVE ANYTHING ON STANDBY AS THIS USES MORE ELECTRICTY !! Another thing how long are you into your mortage. If you are a few years in then try to switch you mortage to some one cheeper kbc have the bast rates at the moment. Hope this helps .


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## huskerdu (23 Dec 2010)

I agree that 100pm for electricity for a 2 person household is very high. There are 5 people in our house, and and we currently pay 82pm . I think even this is excessive and we can cut it further if we try. 

The OP spends 225 a month on gym/phone/broadband/SKY. It must be possible to cut this by quite a bit with some effort.


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## lionstour (23 Dec 2010)

increase the term of the mortgage?


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## niceoneted (13 Jan 2011)

Any update on how you are getting on OP?


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## Allegra (3 Feb 2011)

well this is where im at:

ive cancelled the gym so that €45 saved.
eircom/broadband is cut to €45 per month.
mobile calls are cut to €20 per month so i get free calls and i use texting onlline.
sky is now the most basic package of €22 per month.

And just to add, my esb bills arent €100 per month.  My bill is normally €130-€160 bi monthly, i just pay a round sum of €100per month to keep ahead of it, so normally i dont have to pay an esb bill during the xmas period, or when im off on holidays.  Holidays pah!!  

Of course all this was before i got my january pay packet!  Now im basically back where i started when i wrote the original post!!!!  Give me strength!


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## niceoneted (3 Feb 2011)

Fair play to you for making the cuts - €138 if my maths is right. 
I know its a killer seeing it gone in that wages. 
The ESB is still very high and you need to work at cutting this. It could be halved nearly. 
Food bill also could drop. I am now not allowing myself to throw out anything so it has to be used up and I don't go shopping until all food nearly gone - I used to go on a specific day eg every monday now I'm going less often and spending less.


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## Allegra (4 Feb 2011)

Oh i forgot to add, i started putting 150 away per month since about August for Annual costs and this has been working out very well.  this month it has paid my bin charges for the next year €300 and in december it paid also my house insurance €333, so thats a further €64 ive shaved off.


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## Allegra (4 Feb 2011)

When it comes to the food budget, I will not be cutting it any more.  €60 per week is not excessive when you consider we have every breakfast, lunch and dinner from this.  We do not eat out, we do not have takeaways, or takeaway teas or coffees or lunches out apart from maybe McDonalds as a treat every so often but we eat well and eat healthily.  I grow my own vegetables and I keep my own chickens.  I have two dogs and they also eat from this €60.  Yes there are weeks when I dont have to spend the full €60 but on those weeks I will use it to buy stockpile items or buy savings stamps. I never throw out or waste food and can pride myself on my freezer, if i had no income for a month i know i would be okay from the contents of my freezer and stockpile.  When you have people wholly dependant on yo, you begin to think ahead. 

Thanks for the advice, its greatly appreciated.


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## Bronte (4 Feb 2011)

Allegra, you're doing great, well done.

I love your healthy eating and stockpiling.

Your savings of the 150 a month for the unexpected bills is especially good advice for anyone else out there not able to budget plan.

Would be curious to now how much your salary and child benefit is down in January due to budget. So I can calculate what percentage you are down. That's just so I understand how much people are 'really' losing income.


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## Allegra (4 Feb 2011)

hi bronte

The 150 per month I save is used for annual  charges like my bin, house insurance, car ins, car tax, and for car servicing, nct etc. I find this much better for cashflow.   

Im down about €45 per week in wages and €10 per month on child benefit

Allegra


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## niceoneted (7 Feb 2011)

Allegra, fair play to you for getting things together. I admire you for it.


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## Bronte (7 Feb 2011)

29500 / 52 weeks = 567 so the drop is about 10%


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