103 months of mortgage remaining but only 40 months of earnings

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Lancealot

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Hi, the situation at the end of my working life in just 3.5 years time will mean that I will have 5 years of a mortgage left with not a great pension to support the repayments. Has anyone got any helpful ways that I can plan to have my mortgage paid by then.
My pension will not come anywhere near what I will need for mortgage repayments. I should have moved earlier to deal with this impending disastrous scenario but everything seems to happen in a heart beat the older one gets. Thanks.
 
Can you provide some information


Your family circumstances - married or single?
Value of property
Amount outstanding today
Interest rate
Lender
Your income now
Your pension when you retire
Any other savings and investments?
 
Trade down to a less expensive property?
Increase your income?
Increase your pension contributions/AVCs?
 
Brendan Burgess said:
Can you provide some information


Your family circumstances - married or single?
Value of property
Amount outstanding today
Interest rate
Lender
Your income now
Your pension when you retire
Any other savings and investments?
Click to expand...
Good morning Brendan,
Thanks for your response. I am sick to the pit of my stomach, daily, worrying about what is coming down the tracks in about 40 months time. I have made an attempt (1) to deal with this previously but the person I spoke to in the financial institution who has my mortgage, I felt, was more interested in 'selling' me something rather than getting me to a position where I could breathe some relief into my situation. Yesterday I rang the institution again and asked for a meeting to discuss the situation but in the meantime I am searching for a 'peer' type solution as I guess that I would not be alone in staring down the barrel of this particular big gun. Will the information I post to you be in the public domain or for your eyes only? I have no problem giving any information that will help with a workable outcome.
Thanks a lot!
 
Lancealot this is a public forum and everybody can read what you write, but nobody will know it is you, you just need to tell us your income, expenditure, mortgage, age. The website works on the principal that people read your financial circumstances and tries to figure out solutions for you. Have you looked at what other people posted in the money makeover section to get an idea of how it works.

Please also tell us what the bank tried to sell you, what product?
 
Lancealot,

Not surprised some twit in a Bank tried to sell you more product,ie Banks havn,t learned nor listened.
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One good suggestion is to itemize for one month ALL expenditure, you might be pleasantly surprised @ the fluffy outgoings you can cut.
After one month look @ all providers electricity/gas/phone/Tv/home insurance/personal insurance and change where appropriate.
On retirement your costs might go down eg bus costs/car costs. Work normally costs money in snacks etc.

So after 2 months you will have a real handle on the size of issue.
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Posters mostly don,t give their name , it means their advice is only( biased )by their own views and from experience most posters are very very helpful.

I don,t see from your post the need to have (pit in stomach) I presume you have been a good payer for 20 odd years,so you will get a fair hearing even from a Bank.
 
Branz said:
Pension lump sum?
Increase payments now?
what term is your life cover?
Click to expand...
Hi, I am over borrowed right now. Loan repayments for education(current and historic) and day to day living, taxes, salary reductions have ripped the heart out of me. I have a bank loan for 6o months, a credit union loan for 60 months, a credit card balance. There is no good news in those couple of sentences. The bank, fair dues, (credit was never refused) has kept me afloat, borrowing though, as I look to the horizon is going to sink me unless I can build some kind of a plan and run it over the next 3.5 years. I have trimmed what I can. I cannot do anything right now that will cost me cash. The lump sum will deal with some of the overhang of the mortgage but it must also deal with the outstanding expensive loan balances I will have.
I cannot do any grand gestures right now but hopefully a combination of sound advice from people out there who are similarly challenged might see me through.
Thanks a lot
 
Hi Lancealot. The position you are presented with is currently not a crisis one. You have not provided us with actual figures but your post above indicates that you are not in a position to overpay your mortgage which would be the optimum solution. Talking with the bank is not going to provide you with any solution as they are in no position to agree anything at this point that will give you comfort.
It's not currently a crisis as you have 3.5 years to come up with a solution that suits your circumstances.
In order for anyone to provide some focused commentary on your circumstances you need to complete a financial makeover. Additional key information would be your projected income/outgoings post retirement and amount of residual mortgage when you retire. Other loans that may also need to be dealt with at that time should also be factored in.
 
44brendan said:
Hi Lancealot. The position you are presented with is currently not a crisis one. You have not provided us with actual figures but your post above indicates that you are not in a position to overpay your mortgage which would be the optimum solution. Talking with the bank is not going to provide you with any solution as they are in no position to agree anything at this point that will give you comfort.
It's not currently a crisis as you have 3.5 years to come up with a solution that suits your circumstances.
In order for anyone to provide some focused commentary on your circumstances you need to complete a financial makeover. Additional key information would be your projected income/outgoings post retirement and amount of residual mortgage when you retire. Other loans that may also need to be dealt with at that time should also be factored in.
Click to expand...
Hi The monthly household income is from 2 sources and amounts to 5775€ the repayments to just loans amounts to 3883€. Bills etc are cleared as they are due and utilities are S/O or D/D.
Your optimum solution is the preferred solution but the key question is 'is there some inventive/creative solution out there' or is there someone somewhere that I can go to and say this is my problem these are the figures can I buy a solution or part solution that will lesson the pain come 3.5 years time.
I cant function in a crises.
 
Maybe an option is to sell the place when retiring, pay off the mortgage and buy somewhere cheaper / smaller mortgage free with the rest?
 
Hi, the people here will help to give you some clarity. First though you will need to find one of the templates in this Money Makeover forum to put down all your income and expenses. Then you and us will both have a clear picture.
 
If Lancealot is coming to the end of the mortgage (1.5 years left post retirement) then the bulk of the repayments will be principal.
1.5 years is 18 months at €3,883 per month suggests there'll be a tail of principal on his retirement of approx €60k to €65k.
No comment made about pension lump sum.
No comment made about the 2nd income which is helping to pay the household bills currently.
More details needed.
 
Are you basing your retirement on 40 years service in the public sector?

Will you reach the age of 65 on your retirement?

Marion
 
Andy836 said:
If Lancealot is coming to the end of the mortgage (1.5 years left post retirement) then the bulk of the repayments will be principal.
1.5 years is 18 months at €3,883 per month suggests there'll be a tail of principal on his retirement of approx €60k to €65k.
No comment made about pension lump sum.
No comment made about the 2nd income which is helping to pay the household bills currently.
More details needed.
Click to expand...
Sorry Andy836 when I must retire at the age of 65 in 3.5 years time I will have an outstanding mortgage in terms of months remaining to be paid off, of 60 months (5 years). I do not have a public service pension. I do have a pension that I pay into and I have done so but only since 1992. It is worth something, not a lot and therein lies the problem. I'm taking all contributors suggestions on board and I am grateful to you all for those suggestions. It is helping me to focus and to push on with finding a solution rather than languishing in 'what am I going to do'.
Thanks a lot
 
You will I presume qualify for a contributory state pension when you reach 66. You will have your small private pension. Would it be possible for you to find some part time work that would make up the difference between the 2 pensions and your current income after you retire.
Is your mortgage a fixed Rate
 
If I were to put myself in your shoes, then your right to try solve an impending situation. Your 61.5 years young and hopefully will be employed for the remaining 3.5 years. The problem I have is, if you manage to honour your payments, you will be then 70 years young starting to only then, enjoy your retirement, but with what??
You shouldn't have to be working whether part-time or after 40 years on grindstone if you can help it.
How much is the current family home worth ?, Could you emotionally sell it on reaching 65 and down size to free up capital?
There is no point in me saying, change service providers and save a few hundred here and there, take the bus instead of the car, were talking much bigger decisions here in order for you to be financially secure in a few years time.
 
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