Personal details
Age: 54
Spouse’s/Partner's age: 54
Number and age of children: 3 (17, 17, 10)
Income and expenditure
Annual gross income from employment or profession: €165K
Annual gross income of spouse: €35K
Monthly take-home pay €9K
Type of employment: Both Private Sector
In general are you:
(a) spending more than you earn YES
Summary of Assets and Liabilities
Family home worth €1.3M with a €850k interest only mortgage for full term, expiry 2035
Cash of €10k
Defined Contribution pension fund Myself: €460k
Defined Contribution pension fund Spouse: €130k
Company shares : €10k
Share investment portfolio worth €120K (loss of 570K)
2 x Buy to Let Property worth €600k with mortgage of €372k
Family home mortgage information
Lender Pepper
Interest rate .5 over ECB
Type of interest rate: Interest Only Tracker ECB +.5%
Remaining term: 11 years
Monthly repayment: €3700
Other borrowings – car loans/personal loans etc
Do you pay off your full credit card balance each month? No
If not, what is the balance on your credit card? €10K
Buy to let properties
Value: €600K
Rental income per year: €33K
Rough annual expenses on rental properties other than mortgage interest : €6K (Accountant, Maintenance Fees and upkeep etc.)
Mortgages repayments €29,376 or €2448.00pm
Lender AIB
Interest rate ECB + 1% Trackers on both, remaining Term of repayment mortgages 15 years
Other savings and investments:
Do you have a pension scheme? Yes, pay in 12% pa of Gross salary (6% employer contribution)
Wife makes a small contribution to her pension.
Do you own any investment or other property? As above
Other information which might be relevant
Life insurance: Employer death in service 4 X Salary in both cases, mortgage protection (cost €165pm)
I'm in steady employment in an in demand role and can safely say that barring ill health I should be able to work until I'm at least 65.
What specific question do you have or what issues are of concern to you?
Currently struggling to make ends meet in the current interest rate environment. Although it seems from the outside that all is good its a balancing act.
I have a very large mortgage, interest only which has been a cross to bear, its starting to affect me psychologically. Wife won't sell PPR although I'd happlily trade down to something more manageable.
With the increased rates I'm making ends meet but dont have much left after all the bills are paid. God forbid when the children begin college we'll be out the door.
Whats even worse is I had the cash on hand to nearly pay it off and lost the majority of it on some ill timed investments.
I had reasonable success in the stock market over the last ten years and took my eye off a ball during a significant illness and saw my portfolio decrease from $700K to $120K.
I now want to clear down as much of this mortgage as possible and I'm considering the following:
Cashing in my pension yeilding €230K ( I cannot avail of the tax free lump sum as I waived this entitlement in an earlier redundancy)
Selling my 2 RIPs yeilding €220K
Sell my shares yeilding €120K
This will give me €570K to pay down the mortgage.
I can then pay off the rest between future savings and an inheritance of circa €400K
I will be left with no pension but I can pay the max 35% for the next 13 years which should get my pension to a half decent level.
This situation is a result of a combination of my stupidity (wedded to a stock or sector + not exiting) the transition between low interest rates and todays risk off, higher rate environment.
When rates were low I had lots of cash and my investment portfolio was doing well.
I'm also conscious we are likely at the end of the interest rate cycle and If I can weather the storm for 6 more months things should improve.
I'm also dealing with the RIPs just about washing their face, both which are in RPZ and are well under market rent, my tenants are on lower incomes and can't tolerate rent increases anyway. I may have an option sell one to the council (with a tenant on HAP) which should make things a little smoother.
Age: 54
Spouse’s/Partner's age: 54
Number and age of children: 3 (17, 17, 10)
Income and expenditure
Annual gross income from employment or profession: €165K
Annual gross income of spouse: €35K
Monthly take-home pay €9K
Type of employment: Both Private Sector
In general are you:
(a) spending more than you earn YES
Summary of Assets and Liabilities
Family home worth €1.3M with a €850k interest only mortgage for full term, expiry 2035
Cash of €10k
Defined Contribution pension fund Myself: €460k
Defined Contribution pension fund Spouse: €130k
Company shares : €10k
Share investment portfolio worth €120K (loss of 570K)
2 x Buy to Let Property worth €600k with mortgage of €372k
Family home mortgage information
Lender Pepper
Interest rate .5 over ECB
Type of interest rate: Interest Only Tracker ECB +.5%
Remaining term: 11 years
Monthly repayment: €3700
Other borrowings – car loans/personal loans etc
Do you pay off your full credit card balance each month? No
If not, what is the balance on your credit card? €10K
Buy to let properties
Value: €600K
Rental income per year: €33K
Rough annual expenses on rental properties other than mortgage interest : €6K (Accountant, Maintenance Fees and upkeep etc.)
Mortgages repayments €29,376 or €2448.00pm
Lender AIB
Interest rate ECB + 1% Trackers on both, remaining Term of repayment mortgages 15 years
Other savings and investments:
Do you have a pension scheme? Yes, pay in 12% pa of Gross salary (6% employer contribution)
Wife makes a small contribution to her pension.
Do you own any investment or other property? As above
Other information which might be relevant
Life insurance: Employer death in service 4 X Salary in both cases, mortgage protection (cost €165pm)
I'm in steady employment in an in demand role and can safely say that barring ill health I should be able to work until I'm at least 65.
What specific question do you have or what issues are of concern to you?
Currently struggling to make ends meet in the current interest rate environment. Although it seems from the outside that all is good its a balancing act.
I have a very large mortgage, interest only which has been a cross to bear, its starting to affect me psychologically. Wife won't sell PPR although I'd happlily trade down to something more manageable.
With the increased rates I'm making ends meet but dont have much left after all the bills are paid. God forbid when the children begin college we'll be out the door.
Whats even worse is I had the cash on hand to nearly pay it off and lost the majority of it on some ill timed investments.
I had reasonable success in the stock market over the last ten years and took my eye off a ball during a significant illness and saw my portfolio decrease from $700K to $120K.
I now want to clear down as much of this mortgage as possible and I'm considering the following:
Cashing in my pension yeilding €230K ( I cannot avail of the tax free lump sum as I waived this entitlement in an earlier redundancy)
Selling my 2 RIPs yeilding €220K
Sell my shares yeilding €120K
This will give me €570K to pay down the mortgage.
I can then pay off the rest between future savings and an inheritance of circa €400K
I will be left with no pension but I can pay the max 35% for the next 13 years which should get my pension to a half decent level.
This situation is a result of a combination of my stupidity (wedded to a stock or sector + not exiting) the transition between low interest rates and todays risk off, higher rate environment.
When rates were low I had lots of cash and my investment portfolio was doing well.
I'm also conscious we are likely at the end of the interest rate cycle and If I can weather the storm for 6 more months things should improve.
I'm also dealing with the RIPs just about washing their face, both which are in RPZ and are well under market rent, my tenants are on lower incomes and can't tolerate rent increases anyway. I may have an option sell one to the council (with a tenant on HAP) which should make things a little smoother.
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