T
turnip
Guest
Hi there, I'm looking for advice on loans versus top-up mortgage and any other advice...
Age: 28
Spouse’s/Partner's age: n/a
Annual gross income from employment or profession: 40000
Annual gross income of spouse:
Type of employment: Full time
In general are you spending more than you earn or are you saving?
Spend more than I earn
Rough estimate of value of home
House worth approx 210,000 which is being rented out. Mortgage is for 168,000 over 25 years - tracker, currently at 4.75% with 164,000 and 24yrs 2mths remaining - repayments are currently 957/month which I supplement by approx 200 as the rent does not fully cover the mortgage repayments.
My rent is 500/month.
Other borrowings –
AIB loan - 3000 over 2 yrs at 8% - 2400 remaining
Ulster Bank Credit Card 1900
Halifax Credit Card 2500
Overdraft 2700
Do you pay off your full credit card balance each month? no
If not, what is the balance on your credit card?
Credit Card X 2 = 1x1900 1x2500
Savings and investments:
House worth 210,000
Do you have a pension scheme? no
Do you own any investment or other property? yes, as above
Ages of children: n/a
Life insurance: yes
What specific question do you have or what issues are of concern to you?
I've gotten myself into a fair amount of debt, I put a deposit on a house 2 years ago and the sale finally went through last year. There was a bit of work to be done to the house before it was rentable which meant that I had to pay the mortgage on my own for about 3 months and since then things seem to have gotten a bit out of hand. I'm not particularly good at budgeting in general but now I would like to get it sorted. I would like to consolidate my debt so that I am not paying ridicules money on interest and the following are my options
total short-term debt: €9500 approx
unavoidable expenditure in next 1.5 months over and above daily: €2000
option 1
ulster bank loan for €10,000 at 9.3% for 3 years, cost of loan approx €1400 but I but this will not cover the 2000 that I have to spend in the next month and a half - can pay back at any time but only as a lump sum, monthly repayments just over €300 approx
option 2
ulster bank loan for €12000 at 7.7% for 3 years, cost of loan €1550 approx, can pay back at any time but only as a lump sum, monthly repayments just over €300 approx
option 3
get a minimum €25000 top up on my mortgage and give back 13500 immediately, I've checked this out and as far as I can tell there is no reason why I can't do this. It will increase my mortgage monthly payments by just under €300 for the €25000 but this will reduce when I give the money back or else i can reduce my term (24years left) also repayments are less than loan repayments... is this really an option?? or is there something I'm missing?!
sorry it's so long winded, thanks a mil for any advice!
Age: 28
Spouse’s/Partner's age: n/a
Annual gross income from employment or profession: 40000
Annual gross income of spouse:
Type of employment: Full time
In general are you spending more than you earn or are you saving?
Spend more than I earn
Rough estimate of value of home
House worth approx 210,000 which is being rented out. Mortgage is for 168,000 over 25 years - tracker, currently at 4.75% with 164,000 and 24yrs 2mths remaining - repayments are currently 957/month which I supplement by approx 200 as the rent does not fully cover the mortgage repayments.
My rent is 500/month.
Other borrowings –
AIB loan - 3000 over 2 yrs at 8% - 2400 remaining
Ulster Bank Credit Card 1900
Halifax Credit Card 2500
Overdraft 2700
Do you pay off your full credit card balance each month? no
If not, what is the balance on your credit card?
Credit Card X 2 = 1x1900 1x2500
Savings and investments:
House worth 210,000
Do you have a pension scheme? no
Do you own any investment or other property? yes, as above
Ages of children: n/a
Life insurance: yes
What specific question do you have or what issues are of concern to you?
I've gotten myself into a fair amount of debt, I put a deposit on a house 2 years ago and the sale finally went through last year. There was a bit of work to be done to the house before it was rentable which meant that I had to pay the mortgage on my own for about 3 months and since then things seem to have gotten a bit out of hand. I'm not particularly good at budgeting in general but now I would like to get it sorted. I would like to consolidate my debt so that I am not paying ridicules money on interest and the following are my options
total short-term debt: €9500 approx
unavoidable expenditure in next 1.5 months over and above daily: €2000
option 1
ulster bank loan for €10,000 at 9.3% for 3 years, cost of loan approx €1400 but I but this will not cover the 2000 that I have to spend in the next month and a half - can pay back at any time but only as a lump sum, monthly repayments just over €300 approx
option 2
ulster bank loan for €12000 at 7.7% for 3 years, cost of loan €1550 approx, can pay back at any time but only as a lump sum, monthly repayments just over €300 approx
option 3
get a minimum €25000 top up on my mortgage and give back 13500 immediately, I've checked this out and as far as I can tell there is no reason why I can't do this. It will increase my mortgage monthly payments by just under €300 for the €25000 but this will reduce when I give the money back or else i can reduce my term (24years left) also repayments are less than loan repayments... is this really an option?? or is there something I'm missing?!
sorry it's so long winded, thanks a mil for any advice!