Asking for a "friend" in a medium-term sticky situation.
I am trying to help an anxious couple 60s with 1 income. No qualification for any state support. No prospects of any additional income.
They have 2 split mortgages with one lender (4 portions, 2 warehoused at 0% and 2 being paid down at 4.5%).
Both requiring expensive mortgage protections.
On their current path, they would have a six figure total mortgage balance outstanding by the date of retirement of the single earner.
I am trying to help them on strict budget to accelerate and overpay to clear down as much as possible to avoid this situation.
There is a lump sum in a PRSA which could assist to get to a zero balance by retirement date. (tax math factored in)
They will look at downsizing and moving to a lower cost of living area if necessary.
They ideally want to steer clear of PIPs, legals and courts.
My initial questions that come to mind are along the lines of:
Is it nuts to wipe out the PRSA in favour of avoiding PIA route? i.e. paid for house but only the state contributory pension as income.
If they use a lump sum to clear down one mortgage (and mortgage protection cost) can the lender alter the terms of the other mortgage to take advantage of the perceived additional repayment capacity?
Is there any point in attempting to negotiate on their behalf using the lump sum for some write down?
Interested in any helpful thoughts or suggestions
I am trying to help an anxious couple 60s with 1 income. No qualification for any state support. No prospects of any additional income.
They have 2 split mortgages with one lender (4 portions, 2 warehoused at 0% and 2 being paid down at 4.5%).
Both requiring expensive mortgage protections.
On their current path, they would have a six figure total mortgage balance outstanding by the date of retirement of the single earner.
I am trying to help them on strict budget to accelerate and overpay to clear down as much as possible to avoid this situation.
There is a lump sum in a PRSA which could assist to get to a zero balance by retirement date. (tax math factored in)
They will look at downsizing and moving to a lower cost of living area if necessary.
They ideally want to steer clear of PIPs, legals and courts.
My initial questions that come to mind are along the lines of:
Is it nuts to wipe out the PRSA in favour of avoiding PIA route? i.e. paid for house but only the state contributory pension as income.
If they use a lump sum to clear down one mortgage (and mortgage protection cost) can the lender alter the terms of the other mortgage to take advantage of the perceived additional repayment capacity?
Is there any point in attempting to negotiate on their behalf using the lump sum for some write down?
Interested in any helpful thoughts or suggestions