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- 4
Age:
35
Spouse’s/Partner's age:
35
Annual gross income from employment or profession:
€120,000 + 15,000 Bonus
Annual gross income spouse:
€59,000
Monthly take-home pay:
€8,200 approx (after pension contributions etc.)
Type of employment:
Private sector, Wife is Public
Expenditure pattern:
Childcare ~1200/month
Rough estimate of value of home
€460,000
Mortgage on home
~€230,000 remaining.
€1050 repayments/month. We are about 3.5years through a 10 year fixed rate @ ~ 3.05%. Overall 30 year term to be finished in 2048
Mortgage provider:
KBC
Type of mortgage:
Mortgage split 75% fixed, 25% variable. Principal 250k.
Interest rate:
From memory the fixed portion is 2.99% and variable ~3.1%
Other borrowings – car loans/personal loans etc
None – just cleared a 35k CU loan.
Do you pay off your full credit card balance each month?
No credit card
Savings and investments:
18k
Do you have a pension scheme?
Yes, Company @ 8%, I contribute 8%
Do you own any investment or other property?
No
Ages of children: 2 and 3
What specific question do you have or what issues are of concern to you?
After clearing the loan we are in a position to put >3k into savings each month.
If we were frugal this could be increased to 4k but there’s still work to do on the house so we’d likely direct that there when needed
We are considering moving house in approx. 8-9years time (before the kids hit secondary school) and looking to see if clearing the mortgage over this period makes sense or not?
Potential plan is to direct the 3k each month into the 25% variable portion of the mortgage and clear the 62.5k quickly.
The mortgage with KBC allowed 10% overpayment so I’d also plan to start this now on a monthly basis. (Am I right in saying this agreement carries over to BOI when they take the mortgage?)
From quick calculations this would leave me with a mortgage of 105k left in 2028, if we continue the saving pattern after clearing the 62.5k variable portion of the mortgage, we should have ~150k saved by 2028.
Side notes:
My bonus hasn’t been allowed in the above, its paid in a lump sum. I’d take this a holiday fund/house fund for the year or else put into the pension.
I looked into changing mortgage from KBC to avail of Avant's low rates but the break fee was significant >€20k so I’ve ruled this out.
My salary will rise over the next 5 years and cap @ 135->150k. I’ll direct all future payrises into increasing my pension contributions. There’s scope above to increase my contributions from 8% to 12% regardless and still save the 3k.
Should I be considering something else here?
35
Spouse’s/Partner's age:
35
Annual gross income from employment or profession:
€120,000 + 15,000 Bonus
Annual gross income spouse:
€59,000
Monthly take-home pay:
€8,200 approx (after pension contributions etc.)
Type of employment:
Private sector, Wife is Public
Expenditure pattern:
Childcare ~1200/month
Rough estimate of value of home
€460,000
Mortgage on home
~€230,000 remaining.
€1050 repayments/month. We are about 3.5years through a 10 year fixed rate @ ~ 3.05%. Overall 30 year term to be finished in 2048
Mortgage provider:
KBC
Type of mortgage:
Mortgage split 75% fixed, 25% variable. Principal 250k.
Interest rate:
From memory the fixed portion is 2.99% and variable ~3.1%
Other borrowings – car loans/personal loans etc
None – just cleared a 35k CU loan.
Do you pay off your full credit card balance each month?
No credit card
Savings and investments:
18k
Do you have a pension scheme?
Yes, Company @ 8%, I contribute 8%
Do you own any investment or other property?
No
Ages of children: 2 and 3
What specific question do you have or what issues are of concern to you?
After clearing the loan we are in a position to put >3k into savings each month.
If we were frugal this could be increased to 4k but there’s still work to do on the house so we’d likely direct that there when needed
We are considering moving house in approx. 8-9years time (before the kids hit secondary school) and looking to see if clearing the mortgage over this period makes sense or not?
Potential plan is to direct the 3k each month into the 25% variable portion of the mortgage and clear the 62.5k quickly.
The mortgage with KBC allowed 10% overpayment so I’d also plan to start this now on a monthly basis. (Am I right in saying this agreement carries over to BOI when they take the mortgage?)
From quick calculations this would leave me with a mortgage of 105k left in 2028, if we continue the saving pattern after clearing the 62.5k variable portion of the mortgage, we should have ~150k saved by 2028.
Side notes:
My bonus hasn’t been allowed in the above, its paid in a lump sum. I’d take this a holiday fund/house fund for the year or else put into the pension.
I looked into changing mortgage from KBC to avail of Avant's low rates but the break fee was significant >€20k so I’ve ruled this out.
My salary will rise over the next 5 years and cap @ 135->150k. I’ll direct all future payrises into increasing my pension contributions. There’s scope above to increase my contributions from 8% to 12% regardless and still save the 3k.
Should I be considering something else here?
