Age:
35
Spouse’s/Partner's age:
34
Annual gross income from employment or profession:
E100,000
Annual gross income spouse:
E30,000
Type of employment:
Both private sector employees
Expenditure pattern:
We are both generally 'savers'
Rough estimate of value of home
E240,000
Mortgage on home
E320,000 - the negative equity conundrum...
Mortgage provider:
BOI
Type of mortgage: Tracker, interest only, fixed rate
Tracker
Interest rate
2.5% - after recent ECB rise.
Other borrowings – car loans/personal loans etc
E9000
Do you pay off your full credit card balance each month?
Yes
Savings and investments:
E15,000 shares.
Do you have a pension scheme?
Yes, I pay 8% of gross, matched by employer
Partner has no pension
Do you own any investment or other property?
No.
Ages of children:
None.
Life insurance:
Yes.
What specific question do you have or what issues are of concern to you?
Recent promotion to bring to new gross salary level above - a large enough increase on previous. Plan to use all of excess salary above previous (after the taxman takes his chunk) to pay off debt. Looking to develop a three year plan to significantly reduce neg equity on home.
Q1. Where should this be targeted first (i.e. assume this should be to clear car/personal loans, then focus on overpaying mortgage each month as loans are at a higher rate)
Q2. Should I use share equity to clear this debt (and then existing monthly payment on loans goes towards overpaying mortgage). Wait for offer similar to PTSB (assume everyone has ceased overpayments in the short term, waiting for this..."force their hand" to a certain extent!)
Q3. As part of this 3 yr plan, should i cease paying pension contributions over this period (even though there are tax benefits and employer matching contributions)?
All advice welcome, thanks.
35
Spouse’s/Partner's age:
34
Annual gross income from employment or profession:
E100,000
Annual gross income spouse:
E30,000
Type of employment:
Both private sector employees
Expenditure pattern:
We are both generally 'savers'
Rough estimate of value of home
E240,000
Mortgage on home
E320,000 - the negative equity conundrum...
Mortgage provider:
BOI
Type of mortgage: Tracker, interest only, fixed rate
Tracker
Interest rate
2.5% - after recent ECB rise.
Other borrowings – car loans/personal loans etc
E9000
Do you pay off your full credit card balance each month?
Yes
Savings and investments:
E15,000 shares.
Do you have a pension scheme?
Yes, I pay 8% of gross, matched by employer
Partner has no pension
Do you own any investment or other property?
No.
Ages of children:
None.
Life insurance:
Yes.
What specific question do you have or what issues are of concern to you?
Recent promotion to bring to new gross salary level above - a large enough increase on previous. Plan to use all of excess salary above previous (after the taxman takes his chunk) to pay off debt. Looking to develop a three year plan to significantly reduce neg equity on home.
Q1. Where should this be targeted first (i.e. assume this should be to clear car/personal loans, then focus on overpaying mortgage each month as loans are at a higher rate)
Q2. Should I use share equity to clear this debt (and then existing monthly payment on loans goes towards overpaying mortgage). Wait for offer similar to PTSB (assume everyone has ceased overpayments in the short term, waiting for this..."force their hand" to a certain extent!)
Q3. As part of this 3 yr plan, should i cease paying pension contributions over this period (even though there are tax benefits and employer matching contributions)?
All advice welcome, thanks.