I have amended the title to reflect the outcome - Brendan
Age: 48
Spouse age: 49
Annual gross income from employment or profession: €47K
Annual gross income of spouse: €38K
Type of employment self - Private Sector IT
Type of employment spouse - Public Sector
Rough value of home: €850000
Mortgage remaining: €7400
Pension fund (from previous employment): €405000
I lost my job almost 2 years ago and used most of the redundancy package to reduce my home mortgage so hence the very small mortgage. I took a few months off when I was made redundant but have been doing contract work since and have just been offered a permanent job. The salary isn't as good as what I was earning in my previous job, but I'm happy with the security that permanency brings.
We also have investment properties that are on full repayment. The value of these properties just about matches the outstanding mortgages. When I allow for mortgage repayments, income tax, USC, PRSI, property tax and management fees there's a surplus of €450 per month.
We have 3 kids. Child #1 has just started university. Child #2 is doing Leaving Cert next June (2018) and child #3 is in 4th year (3 years remaining in secondary school). The secondary school that all 3 went to / are going to is fee paying. I've just paid the €3K university registration fee for child 1 and have paid half the fees for children #2 and #3 - the balance is due in January 2018.
I've done some projections as to how much education is going to cost from 2018 until our youngest finishes university, and I've estimated the annual cost to be as follows:
2018 - €16876
2019 - €12250
2020 - €12125
2021 - €9000
2022 - €6000
2023 - €3000
2024 - €3000
The above estimates are based on the €3K third level registration fee remaining the same and allowing for a 3% increase in secondary school fees for child #3.
From next year, I know we won't have the almost €17K saved to pay for education, and it's the same for 2019, 2020 and 2021 so I'm trying to put a plan in place to finance this. One thing I've been considering is remortgaging the PPR for €55K and using the €450 "surplus" from the investment properties to pay this. Our current mortgage is with BoI so if we were to increase our mortgage to €55K and repay this over 15 years, the monthly repayments would be €385 based on fixing for 5 years at 3.2%.
Taking on extra debt on my home mortgage isn't something my wife or I are keen on, but I just can't see any other way to finance this - apart from selling my PPR - which we don't want to do.
Apart from remortgaging our PPR, would anybody have any other suggestions?
Thanks in advance for your help!
Age: 48
Spouse age: 49
Annual gross income from employment or profession: €47K
Annual gross income of spouse: €38K
Type of employment self - Private Sector IT
Type of employment spouse - Public Sector
Rough value of home: €850000
Mortgage remaining: €7400
Pension fund (from previous employment): €405000
I lost my job almost 2 years ago and used most of the redundancy package to reduce my home mortgage so hence the very small mortgage. I took a few months off when I was made redundant but have been doing contract work since and have just been offered a permanent job. The salary isn't as good as what I was earning in my previous job, but I'm happy with the security that permanency brings.
We also have investment properties that are on full repayment. The value of these properties just about matches the outstanding mortgages. When I allow for mortgage repayments, income tax, USC, PRSI, property tax and management fees there's a surplus of €450 per month.
We have 3 kids. Child #1 has just started university. Child #2 is doing Leaving Cert next June (2018) and child #3 is in 4th year (3 years remaining in secondary school). The secondary school that all 3 went to / are going to is fee paying. I've just paid the €3K university registration fee for child 1 and have paid half the fees for children #2 and #3 - the balance is due in January 2018.
I've done some projections as to how much education is going to cost from 2018 until our youngest finishes university, and I've estimated the annual cost to be as follows:
2018 - €16876
2019 - €12250
2020 - €12125
2021 - €9000
2022 - €6000
2023 - €3000
2024 - €3000
The above estimates are based on the €3K third level registration fee remaining the same and allowing for a 3% increase in secondary school fees for child #3.
From next year, I know we won't have the almost €17K saved to pay for education, and it's the same for 2019, 2020 and 2021 so I'm trying to put a plan in place to finance this. One thing I've been considering is remortgaging the PPR for €55K and using the €450 "surplus" from the investment properties to pay this. Our current mortgage is with BoI so if we were to increase our mortgage to €55K and repay this over 15 years, the monthly repayments would be €385 based on fixing for 5 years at 3.2%.
Taking on extra debt on my home mortgage isn't something my wife or I are keen on, but I just can't see any other way to finance this - apart from selling my PPR - which we don't want to do.
Apart from remortgaging our PPR, would anybody have any other suggestions?
Thanks in advance for your help!
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