That might be a reasonable approach.I could do a 50/50 or 60/40 split between them, what do you think of that? The 2 funds are:
1) Irish Life Diversified High Growth Fund (ES35)
2) Zurich Life 5 Star 5 Global Fund
That looks like a solid plan to me.Long term, I think we'll try max out pensions and then use any unrequired excess cash to pay off chunks of the mortgage, paying any break fees, once it makes sense or wait until end of fixed period, whichever is cheaper (i.e. pay off 10k each year extra rather than wait 5 years to pay 50k).
I recently enquired about moving from the 2.8% rate (4 years left) to their 2.3% 5 year fixed rate. I worked it out that the savings in interest would be approx 4.5k over the next 4 years and the break fee was about 4.6k. They did say that this rate wasn't available to existing customers but I haven't been able to find anywhere where it says this online, but that's a different story.... Either way, it doesn't make sense to do it currently.
For a combined income of what you have displayed, and having paid 12 months mortgage already, €420k is a savage amount to be in debt for years.
When I looked at this originally, I thought you were in a great position.
But carrying such a huge mortgage debt, Im not so sure you really are.
For a combined income of what you have displayed, and having paid 12 months mortgage already, €420k is a savage amount to be in debt for years.
A property worth €500k now , was pretty much worth that 12 months ago, your down payment was shockingly low based on your earnings, is what Im saying.
Which is generally the best way to go?
Yep - it gives you more flexibility.Is keeping term the same, still the best option if this is the case?
Thanks for that. I would add, since I can only repay 10% of monthly repayments, I can't really do what is suggested here. I can't overpay to bring my payments back to what they originally were before lump sum.
You can still overpay more than the allowed 10%, there may be a small breakage fee on each over-payment above the 10% but it'll still be less than the interest savings.
Have you considered cancelling the mortgage protection and using the life policy in its stead? Thats what i am going to do, as i pay down the mortgage the amount left over on the life policy should something happen to one of us gets larger and it has dual use.
Also do you intend on having kids, because if you do a lot of what you think might be the case in the future will change dramatically
ok i assumed the life policy was joint as well, maybe not, if it was then you could cancel the mortgage cover.It's a joint policy and my partner also needs it. I don't think I could cancel my half. Either way, it's 30 eur a month, while something perhaps to look at in future, the savings isn't that large relative to other things.
In terms of children, even if we had them, I'd still want to minimise cost of mortgage so I don't think it matters.
ok i assumed the life policy was joint as well, maybe not, if it was then you could cancel the mortgage cover.
Re the kids its more things like will you want to move house (maybe your own is already well set up for having kids), will you both continue to earn (in our case even though my wife was earning a large salary it made more 'life' sense for her to take a break from it, only issue now its hard to see her going back for a variety of reasons!)
You need to find out what, if any, early breakage fee/penalty applies, what lender/rate you can move to and what you might gain by switching in terms of lower ongoing interest costs and maybe also switching cashback.I'd be interested in hearing views on should I break and move to lower rate.
If it's cost neutral then what's the point in switching?
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