Re mortgage and life assurance query

K

kaff

Registered User
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Hi, I would be really grateful for any advice re the following. We are in the process of remortgaging to do some work to our home. OUr mortgage will be 120,000 and we plan to take this out over 20 yrs as a tracker ( house value in excess of 700,000). I will be taking leave from my permanent job to undertake funded research for 3 yrs - this will pay approx 2 thirds of my current salary. We plan to pay the mortgage of alot quicker when I have finished the research and back in my regular job. Is it prudent to take out a tracker for the 20 yrs or should we take out an interest only and then change over after the 3 yrs are up? we have 2 children in childcare - our only other big expenditure.

Also we have a current life and serious illness policy with the BOI . Its 171,000 life and 90,000 serious illness but only has 8 yrs left to run so we need a new policy. Its index linked and convertible and is 61.88 monthly. ( we are 36 adn 37 yrs old). TO increase for another 20 yrs would cost 103.90 monthly - is this good value or should we take out mort protection or term cover for the new mortgage.
My husband has life poicy with this work ,so do I but it won't bew inforce for the 3 yrs I am undertaking the research.
We are not sure what to do?? Any suggestions re queries would be appreciated.
Many thanks
K
 
I would be inclined to go the interest only option for the 3 years that the income is reduced, if you find yourself with a bit to spare it can be used to top up savings.
I'm not to sure on the life aspect though, but labrokers.ie are good value for mort protection.
 
The life & serious illness cover.

Definitely worth having a look at this. Life rates seemed to fall recently as it gradually dawned on life companies that not every young person was destined to die of AIDS so it can often pay to cancel an existing policy and take out a new one despite the fact that the new one will not have the benefit of covering the actuarially lower risk younger years.

On the serious illness cover...desperately hard to give any general advice. Be sure to trawl through the small print of your current and any new policy you might consider. Many of these policies are so restrictive as to be of no practical use at all.

Don't call a broker initially. The internet is a great starting point. You'll be amazed at the deals, particularly for life cover.
 
Thanks for the advice - I think we have been paying too much to the BOI for yrs when no dependents and with cover from our jobs.

I have got good quotes online as suggested and have then contacted LA brokers who will give a better price in yr 1.

On the interest only mortgage option - apparently its only really available to investors so we will just go with the remortgage tracker with the Ulster bank. Will have to wait until 2 kids out of the creche before getting the investment property!!

Thanks again
K
 
just to note you can get an interest only option with IIB for up to 3 years for a home loan, my sister recently got one with them
 
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