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Mortgage Restructure advice

  • 08-12-2020 4:56pm
    #1
    necstandards
    Registered Users Posts: 190 ✭✭


    Hi all
    We are a family of four, two kids aged 6 & 4 and both of use are in our early 40’s. Currently paying ~850 pm with about 12 years left. We are considering restructuring to pay less per month to generate more free cash to allow us explore the world (once this pandemics is no longer an issue) with the kids while they are young (expecting by the time they are 18 / 16 they wont want to be going on holidays). So thinking of push out the loan by 6-8 years, reducing repayment to ~500pm, generating ~4500 per year to spend on decent trips (Disney, Australia etc). Are we nuts?


Comments

  • #2
    Jim2007
    Moderators, Business & Finance Moderators Posts: 10,362 Mod ✭✭✭✭Jim2007


    necstandards wrote: »
    So thinking of push out the loan by 6-8 years, reducing repayment to ~500pm, generating ~4500 per year to spend on decent trips (Disney, Australia etc). Are we nuts?


    I don't know that this is really a financial question... you can't really put a value on family experiences and different people will place different values on that opportunity.


    One thing I would suggest is that you prepared a plan on how you intend to support your children over the next 15 years and then make a decision in the light of that plan. As kids grow older there are a lot of "extras" you will have to cover - school trips, grinds, extra curricular courses and exams, college or support through an apprenticeship etc. I got hit yesterday for an extra CHF 500, for an external exam, my daughter wants to take, for example.


    The other thing to keep in mind is that 4.5k is not really a lot of money, when you have to cover four people, especially as the kids reach about 12 and over. Flights may cost say 1.2k - 1.5, then accommodation etc.... it will not leave much for having fun.


  • #3
    Plumbthedepths
    Closed Accounts Posts: 12,653 ✭✭✭✭Plumbthedepths


    necstandards wrote: »
    Hi all
    We are a family of four, two kids aged 6 & 4 and both of use are in our early 40’s. Currently paying ~850 pm with about 12 years left. We are considering restructuring to pay less per month to generate more free cash to allow us explore the world (once this pandemics is no longer an issue) with the kids while they are young (expecting by the time they are 18 / 16 they wont want to be going on holidays). So thinking of push out the loan by 6-8 years, reducing repayment to ~500pm, generating ~4500 per year to spend on decent trips (Disney, Australia etc). Are we nuts?

    Your oldest child is going to hit 18 just as your mortgage is finished just in time for Uni. Whilst memories are important the destination is not important to a child only that you are together. Sounds corny but my children are raised our best family holidays usually involved a campsite in Spain, Portugal or Italy. Never approaching anything close to your suggested figure even allowing for inflation , youngest is 21, 2 year of college very expensive being mortgage free is a great help.
    Prehaps talk to a financial advisor, personally I wouldn't do it.


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