LadyAnn2022
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Potential mortgage 440k
Annual gross income from employment or profession: 40k part time
Annual gross income of spouse: 100k, RSUs 30k
Plan would be to save around 40-50k and pay it off mortgage in 5 years ,
Will ask re the option of a split rate and consider it . The main reason re lump sum was from other half’s RSU sales and agree better to pay off each year. With rising cost of living, a larger house, interest rates , we’ve a few unknowns.Why would you save it up to pay it off?
The earlier you pay it off, the less interest you pay.
Some people think that they must wait for the fixed term to finish before making an overpayment. You don't. You can pay it off at any time but will be subject to an early repayment fee. That should be less than the interest you would pay anyway, so it's usually a good idea to overpay a fixed mortgage despite the early repayment fee.
I think that AIB will do a split interest rate mortgage e.g. €400k @ fixed rate and €40k at variable 2.75%.
So that is another option.
If only €40k is at variable rate, you won't be too vulnerable to rising interest rates.
Brendan
other half’s RSU sales
How realistic is this figure? Is it your limit or is it the asking price of properties that suit your needs?Potential House purchase 880k
I don't think you will face any ERC's with the 5 year rate because of the quirk in AIB's calculations (see link below). And also you have the option of the 4 year High value mortgage at 2.15%. Its a toss up between the 4 & 5 year rates really, you get a slightly cheaper rate or an additional year of security.Lender AIB
Interest rate 2.35
If fixed, what is the term remaining of the fixed rate? 5 / 30
Does your spouse have a pension fund? If your spouse has a similar or better fund then I wouldn't be too worried about borrowing €440k.Do you have a pension scheme? Yes , fund ~110k. Only match employer’s contributions
Your own current salary is €40k part time. Would this be €60k+ full time? And beyond that you both have reasonable scope to progress and further increase your base salary?It’s also likely both of us will increase our salaries over the next few years.
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