JerseyGirl
Registered User
- Messages
- 10
Hi,
I have a query regarding topping up our mortgage. My husband is the sole earner (PAYE), and we have what would be termed as a very low mortgage (15k over 25 years). Initially when we started it about 7 years ago, it was about 150k, and through some good luck, and serious budgeting we got it down to the level it is today. We have been very fortunate thankfully, but also been quite frugal, we have 2 cars, both over 8 years old, dont go on foreign holidays generally. When we got it down to the 15K mark (last year) we turned to ourselves and said thats enough, we are comfortable with the debt and leave it at that (costs about 100 euro pm in repayments).
Anyway, as I said, we have 2 cars, both about 8 years old, and high mileage, and to be honest one is on its last legs and we need to replace it. We also want to take a nice holiday with the kids, nothing extravagant, but a bit more that a trip to west cork which is what weve done over the last 5 years (our last trip abroad was 5 years ago).
So you might see the way this is going now, we have to replace one of the cars, its only worth about 2k, and to be honest, we want to get something quite decent, so looking to spend about 20k on it (second hand passat is the odds on favourite).
We also have a loan at the moment of about 4k, so we went looking for a car loan of 25k to bundle both the existing loan and the car loan into one.
My husband is due a bonus (once off) and a few other small payments by end of year that will give us another 10k, so effectively we are looking at 15k additional long term borrowings (5yrs) to pay for car, although we need to get the 25k within the next few weeks (old car is due nct, tax, service etc, and not worth spending more money on).
So we went about looking for loan of 25k as a personal loan, and got 5 year repayments of about 500euro pm. This would reduce by early next year once we got the 10k I mentioned above, so the payments would then be about 300 or so a month.
We started thinking then about our mortage, whcih is only 15k, and the rate we are getting on that (tracker at ecb+.9% with ICS), basically we thought we could borrow on that much cheaper and with more flexibility (although whatever additional we borrow, we are determined to repay it all within the 5 years, or hopefully earlier).
Just looking for some advice on this, whether people think its a good way to go, and what would be the best options. ICS seem a bit limited in the the options, so we may have to go elsewhere if we can get a better product, although the low mortage amount we would be looking for would not get many mortage companies excited enough to barter or offer payments for costs etc I would imagine.
Anyway, hope this makes sense, the general feeling between my husband and myself, is we've spent the last 10 years being frugal, we are still young (ish, late 30;s is still young!!), have young kids and want to treat ourselves a bit. There is the practical element to spending a higher amount on the car also, as we woudl aim to keep it for 4 to 5 years before trading in again, so want to get something thats going to work well for us over the period and give us at least a reasonable trade in value.
Thanks,
Jerseygirl
I have a query regarding topping up our mortgage. My husband is the sole earner (PAYE), and we have what would be termed as a very low mortgage (15k over 25 years). Initially when we started it about 7 years ago, it was about 150k, and through some good luck, and serious budgeting we got it down to the level it is today. We have been very fortunate thankfully, but also been quite frugal, we have 2 cars, both over 8 years old, dont go on foreign holidays generally. When we got it down to the 15K mark (last year) we turned to ourselves and said thats enough, we are comfortable with the debt and leave it at that (costs about 100 euro pm in repayments).
Anyway, as I said, we have 2 cars, both about 8 years old, and high mileage, and to be honest one is on its last legs and we need to replace it. We also want to take a nice holiday with the kids, nothing extravagant, but a bit more that a trip to west cork which is what weve done over the last 5 years (our last trip abroad was 5 years ago).
So you might see the way this is going now, we have to replace one of the cars, its only worth about 2k, and to be honest, we want to get something quite decent, so looking to spend about 20k on it (second hand passat is the odds on favourite).
We also have a loan at the moment of about 4k, so we went looking for a car loan of 25k to bundle both the existing loan and the car loan into one.
My husband is due a bonus (once off) and a few other small payments by end of year that will give us another 10k, so effectively we are looking at 15k additional long term borrowings (5yrs) to pay for car, although we need to get the 25k within the next few weeks (old car is due nct, tax, service etc, and not worth spending more money on).
So we went about looking for loan of 25k as a personal loan, and got 5 year repayments of about 500euro pm. This would reduce by early next year once we got the 10k I mentioned above, so the payments would then be about 300 or so a month.
We started thinking then about our mortage, whcih is only 15k, and the rate we are getting on that (tracker at ecb+.9% with ICS), basically we thought we could borrow on that much cheaper and with more flexibility (although whatever additional we borrow, we are determined to repay it all within the 5 years, or hopefully earlier).
Just looking for some advice on this, whether people think its a good way to go, and what would be the best options. ICS seem a bit limited in the the options, so we may have to go elsewhere if we can get a better product, although the low mortage amount we would be looking for would not get many mortage companies excited enough to barter or offer payments for costs etc I would imagine.
Anyway, hope this makes sense, the general feeling between my husband and myself, is we've spent the last 10 years being frugal, we are still young (ish, late 30;s is still young!!), have young kids and want to treat ourselves a bit. There is the practical element to spending a higher amount on the car also, as we woudl aim to keep it for 4 to 5 years before trading in again, so want to get something thats going to work well for us over the period and give us at least a reasonable trade in value.
Thanks,
Jerseygirl