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  • FIRST POST
    • Coffeekup
    • By Coffeekup 22nd Sep 16, 1:40 AM
    • 16Posts
    • 6Thanks
    Coffeekup
    Going forward.... 2-5 year plan.
    • #1
    • 22nd Sep 16, 1:40 AM
    Going forward.... 2-5 year plan. 22nd Sep 16 at 1:40 AM
    Apologies this maybe a bit of a read but I'll try and keep it brief as possible I need help on a number to see if my plan is missing opportunities. I was also unsure of where to post this Mortgages/MFW/savings or pensions, so leaned here as it seemed more relevant. First a little about us.


    I turned 40 a few weeks ago and until 4 years ago I was in a DMP. We since have saved a deposit for a house which is going through as we speak. We got it from the land lady and have a good deal. I have never paid into a pension due to lifestyle choices when I was younger.
    My partner is 33 in a couple of months, and has paid the bare minimum (around £10 a week) into a work pension (with Scottish widows which I know nothing about ATM, bond 2 is all I know) for around 4 years. We also ave an 8 year old daughter who is on the Autistic spectrum.


    After paying off my debts the next main goal was easy, save a deposit for a house, rebuild my credit rating and try and get as much interest as possible. However 9 months later I was made redundant with £16,000 pay (Which I saw it coming as I wasn't focused on work, due to seeing a number of issues with our daughter). I hit a bit of a rut after this and worked out the redundancy would keep us going for 7-8 months (looking back I should have used this for a deposit for mortgage).
    Finding it hard to get work around my partners hours I did voluntary work for 5 months which turned into a zero hour contract. Great at first, but as time went on work was too irregular, 4 days some weeks and then nothing for a week or two. Struggling with incoming, I found out we could claim tax credits, DLA and carer's allowance. Things got back on track and started saving again. Since then I have secured a job (contracted 12 hours) which gives me 12-20 hours a week and works around my partner's work and around the little one's schooling etc.


    I need help with Savings/pensions/Mortgage over payments moving forward for us. I want/need to minimize my financial choices/blunders (as I'm the one that plans/pushes for our financial security/future). As an avid forum reader/poster over the years, coming from the debt free/savings and credit rating forums was easy. Now I'm over to the mortgage over paying/saving and pensions.




    This my plan going forward, but I'm wondering if I'm over looking something.
    Total house hold income per year - £32k.
    Average Monthly to save - £800.
    Mortgage - £76,500 fixed for 2/y @ 3.25% over 25 years, with a LTV of 90%, 10% overpay allowed. This is the only debt we have (or will have). The house we got for £85K although it's worth £110k. I know its not the best deal on a mortgage but after my credit history I wasn't gonna pick and choose. Barclays gave me a £6k C.C. 2 years ago which I used to rebuild my credit rating, so figured these would be the most likely for a mortgage.
    We currently save per month as follows.....
    Acc 1. - £100 holiday's/holiday spending. Current balance (CB) - £0
    Acc 2. - £95 for Christmas and birthday's (CB) - £500
    Acc 3.- £60 breakdown's (boiler/TV/appliances etc) (CB) - £360
    Acc 4. - £500 savings (deposits/Emergency fund) (CB) after deposit fee's have gone £3,000 When mortgage starts I am planning in a 50/50 save/ mortgage over payment.
    Acc 5. - £60 for the little one. Which is not currently in a children's account, because I'm unsure if she will ever understand the value of money and having it locked up may be a down fall at a later date i.e. paying off mortgage early. I tell myself it makes sense because what I'm planning now is for her future and my piece of mind when I'm no longer around. Am I right?
    My thinking for the above is,I'm worried after 2 years if the rates will be up we could be paying more, which won't cripple us but that will eating into the current savings/mortgage over payments. Hence I wanna pay off as much as possible now, which will give us a better LTV rate if rates stay the same. Ideally 70% LTV or better.


    Once everything is set up with the mortgage, I'm going to introduce my partner to nationwide for the £100 reward each promotion. Also get her the current account with the good % on saving. As for my accounts? I dunno because I been with Barclays years, D.D's are all there as will be the mortgage (Barclays/woolwich). Also only around a £1,000 a month goes into my account, and I'm unsure if I can be bothered to bounce around money every month to meet min req's, I can see my self balls'in it up 2 months before the terms and conditions end.


    I would like/want my partner to pay more into a pension so I'm thinking £40 for a week until things have calmed down.


    We get £1,000 cash back with this mortgage, which will be overpaid straight away on the mortgage. There was an other mortgage Barclays offered me fixed for 2 years @ 2.49% with no cashback which has left me wondering if I made the right choice now, but I haven't signed anything yet so wondering if I can change the offer if its better?


    Opinions please?
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