BobbyMarley
Registered User
- Messages
- 3
Age: 30
Spouse’s/Partner's age: 30
Annual gross income from employment: 80k base salary + 10% bonus and roughly 5k RSUs
Annual gross income of spouse: 51000
Monthly take-home pay: 7000 pm total (excluding bonus and stock)
Type of employment: PAYE, spouse is public sector
In general are you:
(a) spending more than you earn, or
(b) saving?
Historically a very good saver, though breaking even the last year as renovating house and now overpaying loans.
Rough estimate of value of home: 750k
Amount outstanding on your mortgage: 494k
What interest rate are you paying? 2.8% with BOI 5 year fixed (~2050 pm)
Other borrowings – car loans/personal loans etc
PCP 1 - 500 pm @ 0% (roughly 21k left, ending May next year with 15.5k balloon)
PCP 2 - 250 pm @ 2.9% (roughly 12k left, ending April 2020 with around 6.5k balloon payment)
Home improvement loan - 300 pm (20k borrowed at 7.5% over 7 years, 19200 outstanding)
Term loan - 120 pm (6k borrowed over 5 years at 7.5%, 1k left - overpaying the last few months)
Loan from parents - 5500
Do you pay off your full credit card balance each month? Always
If not, what is the balance on your credit card? N/A
Savings and investments: 15k between current accounts and savings accounts (varies between 10k - 15k over course of a month between pay dates)
Do you have a pension scheme? DC - 5% matched by employer - 50k total in funds. Spouse has the older pre 2011 public sector pension.
Do you own any investment or other property? No
Ages of children: No kids
Life insurance: 300k dual life cover( level term), 200k joint mortgage protection, 160k critical illness (indexed) - totals 135 pm. My employer also provides 4x salary death benefit and income protection.
What specific question do you have or what issues are of concern to you?
Moved house last year and had to put about 60k into renovations, a lot more than initially planned which diminished most of our savings, and forced us to take on more debt than I'd like. Just coming out of the phase of spending on the house (for now at least, there will need to be another round in a few years) and left with monthly repayments for all debt of 3220 which at ~46% of (base) net income is way higher than I'm comfortable with. Planning to pay this down as quickly as possible to more sustainable levels, also hoping to start a family in the next year or two so want to free up more disposable income before that. Also I'm now overpaying the term loan (120 pm) by about 1100 pm, will have it paid off at the end of this month. Currently considering a few options that I'd be interested getting peoples' feedback on.
Option 1:
After paying off the term loan this month, save the monthly overpayment + the 120 freed up (1220) up until April next year, totalling about 12k, and use this plus either bonus or if needs be a small 3.5 loan to buy out my car at the end of the PCP, freeing up 500 pm. (if 3.5k loan needed, overpay and clear it in the 3 following months). Then save the 5500 owed to my parents over the next few months and pay them back. At that stage save the 6.5k for the balloon payment on the second car and pay that off, freeing up another 250 pm. After than overpay the 20k renovation loan as much as possible (may have to factor childcare costs etc at that stage).
Option 2:
Similar to option one, but also switch mortgage to EBS in the next few months, getting 500k @ 3% (but potentially extending term to 32/33 years to keep the monthly payments down) - fixing for 5 years. Use the 10k from the 2% cashback to pay back parents and as part of balloon payment on my car. Note I fixed for 5 years a few months back so there's a 2600 breakage fee as of today (though it was only 900 a week or 2 ago ).
Option 3:
Same as option 2, but borrow 520k when switching to EBS, and use this extra 20k to pay off the home renovation loan also, freeing up the 300pm at a cost of an extra 68 pm on the mortgage (assuming increasing term to 32 years).
Appreciate any thoughts/feedback/comments on how we're doing, the options listed above (or any others) and any other general financial advice. Thanks!
Spouse’s/Partner's age: 30
Annual gross income from employment: 80k base salary + 10% bonus and roughly 5k RSUs
Annual gross income of spouse: 51000
Monthly take-home pay: 7000 pm total (excluding bonus and stock)
Type of employment: PAYE, spouse is public sector
In general are you:
(a) spending more than you earn, or
(b) saving?
Historically a very good saver, though breaking even the last year as renovating house and now overpaying loans.
Rough estimate of value of home: 750k
Amount outstanding on your mortgage: 494k
What interest rate are you paying? 2.8% with BOI 5 year fixed (~2050 pm)
Other borrowings – car loans/personal loans etc
PCP 1 - 500 pm @ 0% (roughly 21k left, ending May next year with 15.5k balloon)
PCP 2 - 250 pm @ 2.9% (roughly 12k left, ending April 2020 with around 6.5k balloon payment)
Home improvement loan - 300 pm (20k borrowed at 7.5% over 7 years, 19200 outstanding)
Term loan - 120 pm (6k borrowed over 5 years at 7.5%, 1k left - overpaying the last few months)
Loan from parents - 5500
Do you pay off your full credit card balance each month? Always
If not, what is the balance on your credit card? N/A
Savings and investments: 15k between current accounts and savings accounts (varies between 10k - 15k over course of a month between pay dates)
Do you have a pension scheme? DC - 5% matched by employer - 50k total in funds. Spouse has the older pre 2011 public sector pension.
Do you own any investment or other property? No
Ages of children: No kids
Life insurance: 300k dual life cover( level term), 200k joint mortgage protection, 160k critical illness (indexed) - totals 135 pm. My employer also provides 4x salary death benefit and income protection.
What specific question do you have or what issues are of concern to you?
Moved house last year and had to put about 60k into renovations, a lot more than initially planned which diminished most of our savings, and forced us to take on more debt than I'd like. Just coming out of the phase of spending on the house (for now at least, there will need to be another round in a few years) and left with monthly repayments for all debt of 3220 which at ~46% of (base) net income is way higher than I'm comfortable with. Planning to pay this down as quickly as possible to more sustainable levels, also hoping to start a family in the next year or two so want to free up more disposable income before that. Also I'm now overpaying the term loan (120 pm) by about 1100 pm, will have it paid off at the end of this month. Currently considering a few options that I'd be interested getting peoples' feedback on.
Option 1:
After paying off the term loan this month, save the monthly overpayment + the 120 freed up (1220) up until April next year, totalling about 12k, and use this plus either bonus or if needs be a small 3.5 loan to buy out my car at the end of the PCP, freeing up 500 pm. (if 3.5k loan needed, overpay and clear it in the 3 following months). Then save the 5500 owed to my parents over the next few months and pay them back. At that stage save the 6.5k for the balloon payment on the second car and pay that off, freeing up another 250 pm. After than overpay the 20k renovation loan as much as possible (may have to factor childcare costs etc at that stage).
Option 2:
Similar to option one, but also switch mortgage to EBS in the next few months, getting 500k @ 3% (but potentially extending term to 32/33 years to keep the monthly payments down) - fixing for 5 years. Use the 10k from the 2% cashback to pay back parents and as part of balloon payment on my car. Note I fixed for 5 years a few months back so there's a 2600 breakage fee as of today (though it was only 900 a week or 2 ago ).
Option 3:
Same as option 2, but borrow 520k when switching to EBS, and use this extra 20k to pay off the home renovation loan also, freeing up the 300pm at a cost of an extra 68 pm on the mortgage (assuming increasing term to 32 years).
Appreciate any thoughts/feedback/comments on how we're doing, the options listed above (or any others) and any other general financial advice. Thanks!