Age: 37
Spouse’s/Partner's age: 37
Annual gross income from employment or profession: 65,000
Annual gross income of spouse: 78,000
Monthly take-home pay: ~7,400 (joint)
Type of employment: Multinational & Health Profession
Both working overtime where available (included in take home pay above).
In general are you spending more or saving: Just about breaking even
Rough estimate of value of home: 450,000
Amount outstanding on your mortgage: 600,000
What interest rate are you paying? KBC Tracker, so 1.25%
(Paying off capital).
Other borrowings – none.
Do you pay off your full credit card balance each month? Pay in full.
Savings and investments: 25,000 in AIB access account.
Do you have a pension scheme? No, neither.
Do you own any investment or other property? One apartment, City-center, rented.
Rent: 1,100
Value: 230,000
Amount outstanding on mortgage: 260,000
What interest rate are you paying? BankX Tracker, ~2.00%
(Interest only for 10 years has recently expired.)
Ages of children: 4 and 8
Both in childcare one full-time and one part-time @ 1,600 p/m.
Life insurance: No, neither.
Additional: Both of us have old cars, will need to be replaced at some stage and have no residual value.
What specific question do you have or what issues are of concern to you?
The 10 year interest-only period terminated on the apartment mortgage and the repayments are 1,600 p/m (from 450 p/m). We cannot afford this due to childcare and tax increases all around.
BankX have performed a review and have offered to drop the payment to 900 p/m, but to remove the tracker, increase the interest rate to 2.25%, so paying off capital of 300 p/m. After 5 years they would review.
Given that we don't have pensions, we want to retain the apartment as an investment to knock a chunk off the main mortgage.
We are considering declining bankX's offer and instead using our savings to help pay the full interest and capital from month to month. We would only do this until creche fees are reduced with the 4-year old going to school (au-pair instead of creche) in September, but money would still be very tight after that point.
What opinions would be offered on firstly dealing with the bank and secondly dipping into our limited savings to stay on the tracker?
Spouse’s/Partner's age: 37
Annual gross income from employment or profession: 65,000
Annual gross income of spouse: 78,000
Monthly take-home pay: ~7,400 (joint)
Type of employment: Multinational & Health Profession
Both working overtime where available (included in take home pay above).
In general are you spending more or saving: Just about breaking even
Rough estimate of value of home: 450,000
Amount outstanding on your mortgage: 600,000
What interest rate are you paying? KBC Tracker, so 1.25%
(Paying off capital).
Other borrowings – none.
Do you pay off your full credit card balance each month? Pay in full.
Savings and investments: 25,000 in AIB access account.
Do you have a pension scheme? No, neither.
Do you own any investment or other property? One apartment, City-center, rented.
Rent: 1,100
Value: 230,000
Amount outstanding on mortgage: 260,000
What interest rate are you paying? BankX Tracker, ~2.00%
(Interest only for 10 years has recently expired.)
Ages of children: 4 and 8
Both in childcare one full-time and one part-time @ 1,600 p/m.
Life insurance: No, neither.
Additional: Both of us have old cars, will need to be replaced at some stage and have no residual value.
What specific question do you have or what issues are of concern to you?
The 10 year interest-only period terminated on the apartment mortgage and the repayments are 1,600 p/m (from 450 p/m). We cannot afford this due to childcare and tax increases all around.
BankX have performed a review and have offered to drop the payment to 900 p/m, but to remove the tracker, increase the interest rate to 2.25%, so paying off capital of 300 p/m. After 5 years they would review.
Given that we don't have pensions, we want to retain the apartment as an investment to knock a chunk off the main mortgage.
We are considering declining bankX's offer and instead using our savings to help pay the full interest and capital from month to month. We would only do this until creche fees are reduced with the 4-year old going to school (au-pair instead of creche) in September, but money would still be very tight after that point.
What opinions would be offered on firstly dealing with the bank and secondly dipping into our limited savings to stay on the tracker?