From your income (after tax) how much goes to your rent/mortgage?

BigPineapple

AngryLips wrote: »

Question for the over-payers: why are you not going into a cheaper fixed rate, using your over-payments as a means to save towards a lump sum, which you can then use to pay off the capital portion of the mortgage in one go at the end of the fixed rate 3 or 5 year period?

It all depends on the rate between the variable and fixed. Just have to work out the figures and compare.

Personally I have split mortgage with AIB. 1/3 on fixed and 2/3 on variable. So getting the best out of both allow me the flexibility. When the fix portion ends, it will just be moved over to variable.

AngryLips wrote: »

I think monthly repayments just go against the overall balance and an overpayment against capital would be something you need to specifically instruct your bank to do, including an instruction on whether you want to shorten the term of the mortgage or reduce the monthly payments.

Depends on who you are with. With AIB, you just transfer the overpayment into the mortgage account. Don't have to say or instruct anything. It defaults to reduce the balance from capital and in turn reduce the minimum monthly repayment (i.e. maintain the same term). They will send you a physical letter every time you overpay to tell you how much they will take from your direct debit next month (the new minimum repayment).

Claw Hammer

Harpon wrote: »

It’s a big risk to put any significant amount into your pension, you could be dead and buried before you see a penny of that money. Or if you do make it to retirement there’s a good chance you will have some sort of serious illness or just general ailments like a bad hip, bad knee, arthritis etc that prevents you from fully enjoying the money. People should use and enjoy their money while they are still young and healthy.

Actuarial calculations show that most people live to retirement age. people should base their decisions on the laws of probability not possibilities.
The much more likely scenarion is that you will not fall under a bus but that you will live to stop working and then avail of whatever provision you have made for that situation.

bidiots

JimmyVik wrote: »

When we bought our first house, instead of over payments we put what we were going to overpay into ETFs.
There is now enough in those ETFs to cash in, pay the tax, and pay off the whole mortgage - 6 years ahead of when the overpayments alone would have paid it off.
So this year its decision time when covid is over (we dont live together anymore). Cash and pay off the mortgage or keep it in ETFs for longer.

How long have you been in those ETF’s?
Any info would be appreciated, I’m trying to figure out whether to push for AVC’s etc

JimmyVik

bidiots wrote: »

How long have you been in those ETF’s?
Any info would be appreciated, I’m trying to figure out whether to push for AVC’s etc

Id say its at least 10 years now.
Just buy them every month. The ex did the same.

I also maxed my AVCs though. Do those first before you do anything with ETFs. Unless you are planning on retiring before you can draw your pension.
If you are planning on retiring young, you cant get at your pension very easily.

houseyhouse

lawred2 wrote: »

Took out a mortgage over 31 years five years ago. At 4.1%

Now over five years and four remortgages later we're down under 17 years left and a rate of 2.2%

Mortgage currently about 25% household income after tax and pension deductions

Ultimate aim is to be done in ten more years

I would love to know more about how you did this.

Padkir

Mortgage drawn down almost 3 years ago. 25 year term.

Overpaying by about 20% give or take which according to calculators will save about €30k+ in interest and have it repaid in less than 20 years.

Total payment is approx 25% of my wife's and my combined net income.

I'm paying just under 30% of my after tax income towards the mortgage.

Tar.Aldarion

About a third goes to rent.