Should I Pay Off Mortgage

B

BENNY12

Guest
Hi. We Have 150k In The Bank Mortgage Of 183k With 23 Years Left. Made Redundant Last June Still No Luck On The Job Front. No Other Loans My Wife Takes Home About 600 Euro A Week. We Also Have 3 Young Children. Just Wondering Should I Pay Off The Mortgage
 
This is impossible to answer without understanding what your job prospects are, what your outgoings are at the moment, and why you think paying off the mortgage is a good idea.

Have you done the sums? Are you likely to need a bit of a financial cushion int he future? Once you pay off the mortgage, it is not at all likely that you will 'retrieve' the money again.

A reasonable compromise is to go for an offset mortgage. I think First Active used to do them, no idea if still available. You do nee to be very well organised financially to benefit from this.
 
Thanks. Looking To Change Career So Might Take Some Time To Get A Job. Repayments 1000k A Month
 
In most circumstances the interest charged on your mortgage will be more than what you could accrue on your savings, so it would be advisable to clear as much of your mortgage as you can, as soon as you can.

However, your situation is difficult. The fact that you have limited security on your 'next month' income, means you are not in a position to use up all of your funds.

If I were you, I wouldn't be concentrating on paying off your debts, just now. I would make sure your savings are working as best they can for you. You can look at what offers are out there in the "Financial Best Buys" Thread of this website.

Whilst you are out of work, you must be strict on your spending habits and build a short term budget, which allows you to survive on most of your partners income and if need be, some of your savings. It is very important you meet every repayment on your mortgage and personal borrowings, as the last thing you want it to default on either and impair your credit rating for the next 5 years.

How have you been coping with regard to your monthly financial commitments? i.e bills, credit cards, loans, mortgage repayments, etc.

Jon
 
in your shoes, i'd knock 100k off the mortgage and keep the balance as rainy day cash.
good luck with the job hunt!
 
Personally I would knock 150k off the mortgage. With careful spending you can easily live on your wife's salary + the dole every week.
 
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