Raising funds to put kids through college

[DJO]

Hi there. I'm a new user so please forgive me if I have missed anything obvious.

I have three kids, one going to college in Sept 2014 and two going in Sept 2018 or 19.

Total family income inc salaries and child benefit is 60k pa

We have €130k oustanding on a tracker mortgage ~ €800/m.

The property is worth more, maybe €50 to €100k more than the oustanding mortgage amount.

We have €5k CC debt ~ €160/m, €10k car loan €250/m.

We can cover these outgoings and are managing, plus we have savings of just over €1k for emergencies.

We live in a rural area and run two cars, as there are no public transport options, one goes to work the other to school etc

I was wondering whether it might be possible with a bit of financial jiggery pokery to
-take on another mortgage of say €65k
-clear the CC and car loan
-use those payments to fund the mortgage
-use the mortgage funds to put my kids through college

When - or if - they get jobs they can then take up some of the repayments.

I am 54.

Is this a realistic plan? Would I get such a mortgage? Is anyone even lending?
Comments, observations and advice welcome.

 

[wbbs]

You're talking about an equity release to refinance debt etc, died with the tiger!

Highly unlikely I would think especially given your age as it will limit the term of any additional borrowing and there is insufficient value in the house, equity releases normally only went up to 80% loan to value in the good times and based on your lower estimate this would not give you much leeway even if your lender agreed. Maybe start saving in the credit union with the potential to borrow there in a years time for education costs, meanwhile try and clear the credit card, if not fully cleared within the year perhaps the credit union might help you refinance that as well.

 

[DJO]

Thanks for taking a little time to reply. It is very much appreciated. I have no idea what the financial markets are at these days.

I have some savings in the CU and might get Kid 1 through two, possibly even three, years of college with what I can borrow there - but then there's two more kids coming up on the rails .... so a solution that's going to last 10-15 years makes a bit more sense.

 

[wbbs]

I would go with the short term solution, who knows what will happen 10-15 yrs time, borrowing now even if possible to sort that out is not a good plan in my opinion. Who knows what the future may bring in college fees etc and maybe they will not all want to go or they may have to defer and put themselves through college at a later stage. We live in a very different country now and automatic going to college is just not going to be possible for everyone.

As an aside I put my child through 4 yrs of various college courses, (quite cheaply as it happens budgeting being my strong point and I passed it on!), anyway did not finish either of the two courses but is now successfully running own business in something where the only relevant course was the PLC one done after the LC and even that is only borderline relevant so who knows!