Personal details
Age: 43
Spouse’s/Partner's age: 44
Number and age of children: 2 (11 and 12)
Income and expenditure
Annual gross income from employment or profession: 90k
Annual gross income of spouse: 35k (works part time)
Monthly take-home pay: Approx 6.7k together
Type of employment: e.g. Civil Servant, self-employed
Both Public Servants
In general are you:
(a) spending more than you earn, or
(b) saving?
(b) Can manage within our means and save a bit every month.
Summary of Assets and Liabilities
Family home worth c.€600k with a €115k mortgage outstanding
Cash of €10k
Defined Contribution pension fund: €100k (from previous private sector employment)
Company shares : 0
Buy to Let Property worth €250k with mortgage of €110k. Bought 2005 at 290k.
Family home mortgage information
Lender: Haven
Interest rate 4.15
Type of interest rate: variable
If fixed, what is the term remaining of the fixed rate?
If tracker, what is the margin e.g. ECB + 1%
Remaining term: (Original term is not relevant) - end March 2036 (based on the current overpayment)
Monthly repayment: Currently pay 997 per month but that includes a 300 euro voluntary overpayment. The interest element is equating to about 280 per month at the minute I think - the statement isnt splitting it all out for me.
Other borrowings – car loans/personal loans etc
Do you pay off your full credit card balance each month? Yes
If not, what is the balance on your credit card? Zero
Buy to let properties
Value: 250/260k
Rental income per year: 17000
Rough annual expenses other than mortgage interest : 1400 managemnt fee. Plus usual taxes.
Lender. PTSB
Interest rate: 6.18 (it is a tracker but I cannot spot the rate over ECB - it could be 2.3% although it was never one of the very skinny ones). 11 years left on it.
If fixed, what is the term remaining of the fixed rate?
This property we originally lived in and did not intend to keep long term. With the property crash we couldnt afford to sell so have kept it since and then we managed to get our family home.
Other savings and investments:
Do you have a pension scheme? Yes. Civil Service Single scheme (6 yrs). Private DC one worth 100k. Spouse has a 2002 Public service pension but would not have all the years as working half time the last 7/8 years
Do you own any investment or other property? No
2 cars - no loans on them. Paid from savings.
Other information which might be relevant
Life insurance: Covered under mortgage protection. Also both have death benefits from work (think its 1.5 times annual salary each)
What specific question do you have or what issues are of concern to you?
Myself and spouse are considering selling the investment property and using the money to pay off the family home. We would then be debt free. This would leave us with 35-40k to put away to assist with childrens education. I am not in the best of health and work stress plays a part in that. I am attracted to the idea of being mortgage free as this would give me other options in terms of work. Spouse wishes to sell the apt as she is a believer in being debt free and her parents would have done the same thing around this age. I only see myself being in the public sector for a few more years (if even). Then I would like to move to a more stress free job - wife is supportive of this. My wife loves her job and will stay in it long term. Whatever way house prices go in the future, we remember the crash where our apt was at one stage worth 110k after a purchase price of 290k. In that context it seems like a time to be grateful to be in this postion to go mortgage free.
The question I have is what are the financial implications of the decision to sell the apt and pay off home mortgage? As a pure buy/ hold decision what is financially best?
Secondly, if you have made a similar decision to this - how has this turned out for you particurarly from the non-financial side?
Many thanks and grateful for any contributions.
Age: 43
Spouse’s/Partner's age: 44
Number and age of children: 2 (11 and 12)
Income and expenditure
Annual gross income from employment or profession: 90k
Annual gross income of spouse: 35k (works part time)
Monthly take-home pay: Approx 6.7k together
Type of employment: e.g. Civil Servant, self-employed
Both Public Servants
In general are you:
(a) spending more than you earn, or
(b) saving?
(b) Can manage within our means and save a bit every month.
Summary of Assets and Liabilities
Family home worth c.€600k with a €115k mortgage outstanding
Cash of €10k
Defined Contribution pension fund: €100k (from previous private sector employment)
Company shares : 0
Buy to Let Property worth €250k with mortgage of €110k. Bought 2005 at 290k.
Family home mortgage information
Lender: Haven
Interest rate 4.15
Type of interest rate: variable
If fixed, what is the term remaining of the fixed rate?
If tracker, what is the margin e.g. ECB + 1%
Remaining term: (Original term is not relevant) - end March 2036 (based on the current overpayment)
Monthly repayment: Currently pay 997 per month but that includes a 300 euro voluntary overpayment. The interest element is equating to about 280 per month at the minute I think - the statement isnt splitting it all out for me.
Other borrowings – car loans/personal loans etc
Do you pay off your full credit card balance each month? Yes
If not, what is the balance on your credit card? Zero
Buy to let properties
Value: 250/260k
Rental income per year: 17000
Rough annual expenses other than mortgage interest : 1400 managemnt fee. Plus usual taxes.
Lender. PTSB
Interest rate: 6.18 (it is a tracker but I cannot spot the rate over ECB - it could be 2.3% although it was never one of the very skinny ones). 11 years left on it.
If fixed, what is the term remaining of the fixed rate?
This property we originally lived in and did not intend to keep long term. With the property crash we couldnt afford to sell so have kept it since and then we managed to get our family home.
Other savings and investments:
Do you have a pension scheme? Yes. Civil Service Single scheme (6 yrs). Private DC one worth 100k. Spouse has a 2002 Public service pension but would not have all the years as working half time the last 7/8 years
Do you own any investment or other property? No
2 cars - no loans on them. Paid from savings.
Other information which might be relevant
Life insurance: Covered under mortgage protection. Also both have death benefits from work (think its 1.5 times annual salary each)
What specific question do you have or what issues are of concern to you?
Myself and spouse are considering selling the investment property and using the money to pay off the family home. We would then be debt free. This would leave us with 35-40k to put away to assist with childrens education. I am not in the best of health and work stress plays a part in that. I am attracted to the idea of being mortgage free as this would give me other options in terms of work. Spouse wishes to sell the apt as she is a believer in being debt free and her parents would have done the same thing around this age. I only see myself being in the public sector for a few more years (if even). Then I would like to move to a more stress free job - wife is supportive of this. My wife loves her job and will stay in it long term. Whatever way house prices go in the future, we remember the crash where our apt was at one stage worth 110k after a purchase price of 290k. In that context it seems like a time to be grateful to be in this postion to go mortgage free.
The question I have is what are the financial implications of the decision to sell the apt and pay off home mortgage? As a pure buy/ hold decision what is financially best?
Secondly, if you have made a similar decision to this - how has this turned out for you particurarly from the non-financial side?
Many thanks and grateful for any contributions.