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