Billy Baltic
Registered User
- Messages
- 43
Thanks - I had a brain freeze and couldn't remember their age limit!UB go to 70 if the borrower is a member of a pension scheme
BoI: 70
KBC: 68
Note, will probably require proof of ability to pay past normal retirement age. I'm not sure how much this is relaxed with increase to pension ages.
I am wondering a bit about this part. You have shared in excess of the mortgage balance. In effect you are borrowing at 3.7% to purchase these shares? The return on the shares of around 7% per annum (guaranteed) to offset the cost of the mortgage.I have shares with current value in excess of mortgage balance
I am wondering a bit about this part. You have shared in excess of the mortgage balance. In effect you are borrowing at 3.7% to purchase these shares? The return on the shares of around 7% per annum (guaranteed) to offset the cost of the mortgage.
Would you not consider
(a) selling the shares, paying off the mortgage and using the mortgage repayment amount to build the share portfolio back up again?
(b) selling some of the shares and making a lump sum payment against the mortgage, so you would be in a position to reduce the term to your 65th birthday so you make your mortgage application process easier and all banks are open to you?
Just a thought ! I know what I would do (done) at this moment in time...
Personally [since the dot com bubble not long after I graduated], I have a rule that I do not hold individual stock in companies or industries I work in, unless part of an overall managed fund. I work in the communications side of technology. My view is that if the industry/company is doing well, I will be rewarded as such and see my salary/bonus/income/daily rate rise accordingly. If the industry is doing poorly, I will experience the reverse. To properly diversify I need to consider different industries and not have all my eggs in one basket (income & savings). I saw too many people get stung alive in the dot com bubble that way.The shares are in a basket of US based Pharma that I picked up over periods working for the companies. They are performing very well (appreciating) currently and dividend return is good.
CGT bill will be due at some stage. Its a matter of when you are willing to pay it? Do you have any losses to offset against it ?especially with a sizable CGT bill being involved.
Good to hear - at least it gives you optionsBased on the advice on this thread I spoke with BOI and their initial feedback on mortgage into my late 60's was positive.
I was in a similar boat 9-12 months ago. I decided to cash in a good block of investments and have paid off the mortgage leaving a residual (I have a redraw facility on mine). I have since started to build up the savings again since. Yes, I was stung with the tax on them, but I am happy with my decision. Having the mortgage effectively cleared gives me more options in general.Thanks for your analysis and this is something I struggle with continually.
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