Currently on tracker mortgage, applied for early retirement from today due to terminal illness (life expectancy under 1 year), income will be down from 3000 to approx 500 euro pm, current mortgage 1750 euro and creche fees of 1300. Wife working 4 days a week income 2450 pm. Any advice on asking for interest only payments on tracker please? Have spoken to bank in general terms and they will do interest only arrangements on a short term basis without affecting the terms and conditions of that mortgage.
Any advice appreciated, thank you.
Firstly may I say how sorry I am that you have a terminal illness. I understand all your financial concerns, I have been very seriously ill but not terminally,myself for over a year, and I have managed my finances. I have a few tips about where you can source extra income.
You say you have applied for early retirement, I dont know much about private pensions. Are you on any social welfare payment? you definitely should be on Illness Benefit €188 per week which is €815 per month. This is my only income at present, it basically pays my half of our mortgage. Illness benefit is not means tested, your PRSI contributions should qualify you for this payment. If you have to attend hospital frequently you can get a regular payment through your local community welfare officer, ie money for travelling expenses/petrol etc, depends on your travel but about €30 a week. If your medical consultant signs a form, you can get a monthly payment towards food/diet ie a diet allowance maybe €80+ a month. Monthly mortgage interest supplement from community welfare officer helps also, very approx €300 a month. Also you can get a €150 clothing allowance for medical needs, even pjamas cost money. So if you add up all of these you will meet your mortgage payments. Dont feel embarassed or anything about availing of help from social welfare, you and your family have paid taxes/PRSI. The people in social welfare I dealt with were very decent people and especially for people with serious illness will go the extra mile to help. I strongly advise your wife to take carers leave from her job sooner rather than later, she will be unpaid but her job will be there for her. She is no doubt suffering from stress and her GP will have no problem certifying this, this means she will get €188 illness benefit per week ie €815 per month. She also should apply for to be your carer, she will get €102 per week extra foer this, ie €442 per month. If your wife takes carers leave, you can jettison the €1300 monthly creche payment as kids can be looked after by your wife and you as well a bit Your monthly mobile or fixed line rental will be paid by social welfare, and you get TV licence paid, also the household benefit package will pay a good bit of your gas bill or whatever you have. If you have a cancer illness, you can get a grant from Irish Cancer Society, maybe €500+. There is also a €1700 respite grant from social welfare you can apply for, it is an annual lump sum payment, you can do what you like with it.
so, in summary, your wife should take carers leave, and if you look at the income from social welfare, you should manage. You dont need to worry about finances then, you can spend time doing the really important stuff with your family and friends. Once again I am sorry about your diagnosis, and if you have any questions, ask, and I will do whatever I can to help you.