u/Latter-Camera-7010

Hi all,

I'm 28M on around 50,000 gross per year.

Taking in about 3000 per month after tax. I bought on my own, although I'm living with my partner. Which I am aware is an incredible feat for my age.

Fortunately, I was able to purchase a 2 bed home 5 months ago. Mortgage 221,000, deposit 33500, First home scheme 79,000. Unfortunately I didn't get any help to buy as the LTV was too low.. the crux of this was instead of getting €18,000 in tax back and taking less FHS, I got 0 in support and took out higher FHS.

I intend to make a large redemption of FHS next month, within my 6 month drawdown anniversary. I'm thinking €20000. This means that what I paid for the house will still be regarded as the same for the FHS redemption, lowering the FHS stake from around 24% down to about 16%

I think it a good move to reduce penalties in future (years 6+) and maybe after my term is over in 4 years, I could apply for a mortgage top up to get rid of FHS. I'm not sure if that can be done ?

Another thing is, my partner is contributing to shopping, some bills etc.. but I'm trying to pay for all of mortgage and first home contributions my self even though she wants to help. She has given me a grand or two over time for expenses. I don't want to be anxious or have trust issues, although I have family trauma of raw deals regarding custody of kids and house. Should I refuse help towards the mortgage or FHS ?

Regarding my investing, I have been actively investing in a pie on trading212 in over 30 companies. I think I'm up 43.4% in the pie and over 60% up overall across all investments in under 2 years. I now invest 100 per week into it, but recently considering lowering it to 50€ per week.. I do realise this gain is a past gain and may not be like this in future. My avc contributions at the minute are low, around 2% this could be a lot higher but I tried to maximise my mortgage amount 5 months ago, and I'm thinking of the same in 4 years time if I get a top up to pay the remaining FHS stake. I do realise avcs might be the best option (tax reduction and pension planning) but I don't know if I should stretch my money yet. Outside of the 20000 I'm contributing to FHS in November I would need to work on my emergency fund. I have 3000 in trade republic which I consider my emergency fund and 10000 in state savings earning peanuts (year 6 of 10) but I would leave it there for an extreme emergency. It's my emergency emergency fund.

I'm a very anxious person, recently the job or even myself haven't been kind to me. I'm ruminating about everything. Your advice and overall impressions are welcomed.

Thank you all.

Hi,

I have posted before and I didn't get the logical responses that I wished to get.

Previously it was mainly single people saying, I don't care about FHS or paying it back.. or 5 years isn't a long time to invest (so do nothing)

Or

The s&p can't keep up with house prices 🤷🏻‍♂️

Well, my situation is I have purchased a home using FHS, with 79k borrowed. On top of my 221k mortgage. I went solely on the mortgage, I'm in a very secure job, and get €3000 after tax per month. my partners side of thing was complicated at the time of application. Unfortunately I didn't get HTB as my loan to value ratio was below 70%. I had no other choice than going for FHS to bridge the gap. Her situation has now improved.

There are a few things I wish to get clarity on, but things are certain that I would prefer to have the majority of the FHS stake paid off in the 5th year (interest free period)

My partner has no problem assisting me with either mortgage payments, or monthly contributions to help pay this off asap.

I know 5 years isn't a long time, but I'm considering investing 1300 monthly into the S&P 500, for at least 4 years (if it's went well, take it out in year 4 to protect from crashes) if there are crashes in that period, keep investing, I have known that the s&p has rebounded well in years subsequent to crashes.

If it doesn't work out either, pay the yearly fee of not paying back equity stake (starts in year 6) whilst I keep investing, or pay pack what I can to reduce the equity stake and penalty.

The reason for one payment is because each time a payment is paid by me, a valuer comes out to value the house. So I'm thinking bigger lump sum, less valuations in a time of house prices rising.

Well, that's it..

I would like to get your opinions and what you would do?

Thanks kindly.