Hi everyone,
New to here, so please bear with me! Looking for a little bit of advice to make sure i am doing the right thing in life. Moved back to Ireland about 16 months ago (appear to have bucked the trend there!) as my company offered me a relocation. Good package, will explain below. I have recently moved into a property on the Rent to Buy scheme....2 year contract before looking to purchase/end lease. My question is this: Should i focus on fully clearing my debts before i start the savings for the deposit?
I have some CC debts (now €7k) that are a result of paying overseas tuition fees (around €15,000 for a years fees, payable upfront, i left course early but couldn't get a refund - never mind, i've accepted that). This was originally on MBNA 0% interest but that expired, transferred to AIB Platinum for 3.9%.
Car loan is €23,000
'Savings' €600 (although currently i have been using this to clear off the remainder of CC debts and calculate i shoud be CC debt free by August)
Once i have no money owing on the CCs, I'm thinking of ploughing every possible € into the car laon (variable rate, can make additional payments). I calculate that from August / September i can be paying €1600 instead of €500. If i can stick to this, taking my bonus into account, this should mean i can clear the debt in time for the following July. I was then thinking of saving €2000 per month towards deposit, and then applying for mortgage in the next 6 months. My concern is that if i have any car loan outstanding, i know it will seriously alter my mortgage chances.
I did actually get cleared for a mortgage last year. However, i refused to take it as it was much lower than initially thought it would be. When questioning it, the bank refused to accept my car allowance from work as a form of income, saying that as it is an 'allowance' i am not guaranteed income. However, it is in my employment contract that my salary will be €59,000 plus an annual allowance of €9,500 for car used in line of work. Also, they took my €500 as an outgoing, despite applying for a 35 year loan, and the length of the car loan being for a few more years. I argued that if they do that, they should not take the loan as an outgoing, as the car allowance will cover that. No joy.
Anyways, advice is needed whether to keep ploughing the debts down, or establish some savings. Would the banks be happy if i were to say to them when mortgage application comes around that savings history is only for 6 months as debts were cleared (as in banking history)?
Not sure if it makes a difference, i'm 28, gross annual income €68,500, plus bonus (normally 5 weeks salary), maxing out my pension (7% personal contribution), house to buy currently valued €300k (got clause in contract price cannot rise, but if values fall in area or other rent to buy scheme is entered into on lower agreed price they must honour that price for me)....
Thanks in advance....look forward to hearing.
New to here, so please bear with me! Looking for a little bit of advice to make sure i am doing the right thing in life. Moved back to Ireland about 16 months ago (appear to have bucked the trend there!) as my company offered me a relocation. Good package, will explain below. I have recently moved into a property on the Rent to Buy scheme....2 year contract before looking to purchase/end lease. My question is this: Should i focus on fully clearing my debts before i start the savings for the deposit?
I have some CC debts (now €7k) that are a result of paying overseas tuition fees (around €15,000 for a years fees, payable upfront, i left course early but couldn't get a refund - never mind, i've accepted that). This was originally on MBNA 0% interest but that expired, transferred to AIB Platinum for 3.9%.
Car loan is €23,000
'Savings' €600 (although currently i have been using this to clear off the remainder of CC debts and calculate i shoud be CC debt free by August)
Once i have no money owing on the CCs, I'm thinking of ploughing every possible € into the car laon (variable rate, can make additional payments). I calculate that from August / September i can be paying €1600 instead of €500. If i can stick to this, taking my bonus into account, this should mean i can clear the debt in time for the following July. I was then thinking of saving €2000 per month towards deposit, and then applying for mortgage in the next 6 months. My concern is that if i have any car loan outstanding, i know it will seriously alter my mortgage chances.
I did actually get cleared for a mortgage last year. However, i refused to take it as it was much lower than initially thought it would be. When questioning it, the bank refused to accept my car allowance from work as a form of income, saying that as it is an 'allowance' i am not guaranteed income. However, it is in my employment contract that my salary will be €59,000 plus an annual allowance of €9,500 for car used in line of work. Also, they took my €500 as an outgoing, despite applying for a 35 year loan, and the length of the car loan being for a few more years. I argued that if they do that, they should not take the loan as an outgoing, as the car allowance will cover that. No joy.
Anyways, advice is needed whether to keep ploughing the debts down, or establish some savings. Would the banks be happy if i were to say to them when mortgage application comes around that savings history is only for 6 months as debts were cleared (as in banking history)?
Not sure if it makes a difference, i'm 28, gross annual income €68,500, plus bonus (normally 5 weeks salary), maxing out my pension (7% personal contribution), house to buy currently valued €300k (got clause in contract price cannot rise, but if values fall in area or other rent to buy scheme is entered into on lower agreed price they must honour that price for me)....
Thanks in advance....look forward to hearing.