Are we over-leveraged - what's our next move?

UPDATE - 3+ YEARS LATER

Age: 38
Spouse’s/Partner's age: 40

Annual gross income from employment or profession: €100,000
Annual gross income of spouse: 40,000
Monthly take-home pay: € 6,900

Monthly expenses: circa €6,000 (includes the below)

  • Mortgage 1 1,530
  • Mortgage 2 1,190 (overpaying by 500pm)

  • Gas + Electricity + Bins 180

  • Property Tax 45

  • Car Insurance 40
  • Diesel 50
  • Phones x 2 and broadband 110
  • Creche 525 (will increase to 1,800 next July as both babies will be in 4 days a week)
  • Life assurance 40
  • Health insurance 100
  • Food 500
  • Near term savings acc for car purchase 300
  • Child saver acc 150
  • Home renovation 600

  • Type of employment: Both in private sector

    In general are you:
    (a) spending more than you earn, or BREAKING EVEN
    (b) saving? We are saving roughly €1,450 per month. We could potentially save a lot more but we are overpaying mortgage 2 and undertaking some home renovation work.


    Rough estimate of value of home: €330k
    Amount outstanding on your mortgage: €255k (17 years remaining) rate 2.30%

    Rough estimate of value of rental property: €65k
  • Amount outstanding on this mortgage €125k (3.15% variable)
  • Do you pay off your full credit card balance each month? Yes, always.

    Savings and investments:
  • €15k in current acc (mainly holding for rainy day fund purposes)
  • €1.8k in child saver account
  • €4k in near term car saver acc

    Do you have a pension scheme? Yes, both in DC schemes. 8% employer and 12% personal for me. Current total value is €70,000. Partner pays 5% and employer matches with 5%. Pension fund amounts to circa €100,000

Ages of children: 2 and one due next month

Life insurance: We both have policies that pays 4 x Salary on death. My wife has serious illness cover. I have income protection (75% of salary)

We've spent about 3k on holidays a year for the last 2 years.

We have invested about 20k into home improvements since we bought in 2018. The likelihood is we will spend the same again in the next 3 years. We are ok with this as we see it as our forever home and when we bought we knew a lot of renovation was needed.

The plan is when fixed rate term on mortgage 1 expires in 4 years to derisk by refinancing with Avant for 15 years at around 2.20%.

Property 2 continues to be a major headache unfortunately. We want to pay mortgage down to a level which gives us headroom to sell without having a large residual balance. Rental income per month is 550.

Questions
It feels like we are making good progress in making the debt more manageable. Any thoughts on how we are doing on this?

I currently don't have health insurance. I struggle to see the benefit but I'm considering getting a low cost plan so at least have a minimum cover. Can anyone convince me why insurance is beneficial? Good plan recommendations also welcome.

Next car purchase is in 2023. Plan is to finance by part exhange and cash only.

Anything we are missing in current plans?
 
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Health insurance - to jump the public queue! Main reason anyone takes it out. In an emergency you will be seen in A&E but anything other than an emergency and you're on the public list.
 
Thanks. My understanding is it doesn't under the current scheme. It's very early stages but fearing and assuming the worst
 
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