Mortgage Reduction Beginner to Novice - The Show Begins

Mortgage_Reduction_Novice

Background: House bought in November 2008, monthly mortgage payments £1039. 25 year mortgage

Miss MRN finishing uni using savings for bills and Mr MRN's salary paying mortgage and some bills. Miss MRN has final exam tomorrow and with luck will become Dr MRN, career job starts on Monday. Enter stage left: larger household income. We'd like to use this wisely.

Debts:
Mortgage £156k - ish
Student Loan £6k - ish

Wish List:
Wedding (end of 2010?) - £10k mixture of savings and parental contributions
Overpay mortgage - ?
Renovate house - £3k saved for new boiler, then mainly DIY, some materials (paint, filler, tools etc.) we already have
Emergency fund - £5k so far

To Do List:
Miss MRN
Final exam
[STRIKE]Check student loan balance[/STRIKE] £6081.65
[STRIKE]Open Natwest eISA[/STRIKE], transfer old ISA
[STRIKE]Open Barclay's ISA, save here [/STRIKE]- £10
Investigate options for student account to graduate account, use interest free overdraft for savings, keep an eye for yearly reductions in overdraft
Open grown up current account for salary
Savings account - once ISA full for this year
Credit card - open cashback account, close crappy account

Mr MRN
Open Barclay's ISA, dump max in from savings
Sell/scrap car
Sort his stuff for car boot sale
Switch to higher rate savings account

Together
Decide on monthly contributions to joint account
Set up bill/mortgage direct debits from joint account
Car boot sale - any profit to house renovation fund
Build chicken coup
Expand veggie patch
Discuss mortgage over payment plan
Edit: Compile SOA

Thoughts? Are we going about it the right way? Is our initial plan too ambitious? Not ambitious enough? Too realistic? What next?

SmlSave

Hi MRN, nice to meet you.

I like your action plan. May I suggest that you post an SOA? Then the brain boxes on here can advise you how to cut down on things if you wish.

Mortgage_Reduction_Novice

Yep, good idea... I'll add it to the list.
Although what with the new job, switching bills to direct debits (cheaper I hear?) etc... I think it'll change somewhat.

chirpchirp

Be careful about switching all your bills to direct debits. Some bills are best paid as a lump sum as the companies loan you the money over the 12 month period and charge you interest. I was stung by this with my buildings insurance.

From my experience, insurance companies loan you the money and charge you interest for doing so. Utility companies you are paying in advance so they sometimes give you a discount for doing this.

Hope this is useful.

Mortgage_Reduction_Novice

Thanks chirpchirp, had only thought of putting gas & elec, water and council tax on direct debit but will check those and other bills carefully to see what the best method of payment is. I remember we paid home & contents in full and I pay car insurance in full but not sure how MrMRN handles tv liscence or his car insurance... although will be cutting down to one car soon anyway.

It just occured to me that we got our mortgage at Oct/Nov interest rates fixed till November 2010. I'm wondering if the get-out fee and new lower mortgage might be a financial good idea? Would have to look into the exact rate and fee amount to work this out.

setmefree2

to the MFW board and lots of with all your plans. keep posting on your progress!

Kind Regards

SMF2

RosieTiger

Good luck and welcome aboard !

Mortgage_Reduction_Novice

To Do List:
[STRIKE]Miss [/STRIKE] Dr MRN
[STRIKE]Final exam[/STRIKE]
[STRIKE]Check student loan balance[/STRIKE] £6081.65
[STRIKE]Open Natwest eISA[/STRIKE], transfer old ISA
[STRIKE]Open Barclay's ISA, save here [/STRIKE]- £10
[STRIKE]Investigate options for student account to graduate account, use interest free overdraft for savings, keep an eye for yearly reductions in overdraft[/STRIKE]
Open grown up current account for salary - need to wait a month
Savings account - once ISA full for this year
[STRIKE]Credit card - open cashback account, [/STRIKE]close crappy account

Mr MRN
[STRIKE]Open Barclay's ISA, [/STRIKE]dump max in from savings
Sell/scrap car - advertised
[STRIKE]Sort his stuff for car boot sale[/STRIKE]
S[STRIKE]witch to higher rate savings account[/STRIKE]

Together
[STRIKE]Decide on monthly contributions to joint account[/STRIKE]
[STRIKE]Set up bill/mortgage direct debits from joint account[/STRIKE]
Car boot sale - any profit to house renovation fund
Build chicken coup
[STRIKE]Expand veggie patch[/STRIKE]
[STRIKE]Discuss mortgage over payment plan[/STRIKE]
[STRIKE]Compile SOA[/STRIKE]

Wed 27 May - Edited to show list progress

chirpchirp

Dr MRN - Congratulations on finishing exams.

Mortgage_Reduction_Novice

Two more strike throughs on the to do list (Mr MRN is away with work, I'm sure he'll get started on the list when he's back)

Also this evening:
I've updated a spreadsheet I'd made for my student loan a few years ago to include the changes in interest rates, my new balance and looking ahead to the impending new job... I worked out, I'll roughly be done by 2015 (hard to predict interest changes and salary so just an estimate!).

Used online calculators to work out student loan repayments and monthly income for new job.

Sorted out which "grown up" account I'll apply for but need to wait a few more weeks as my first pay will only be half of May so will be below the required amount for the bonus. (Had to remember student loan repayments when looking at salary requirements for this account on Martin's Best Buy guides!)

Have updated mystery shopping details to include the area near my new job... any evening or quick-ish lunch time ones might be do-able.

Retrieved the last few items at my parents house - mainly things I don't need so added to the car boot boxes. Sorted out their problems with their internet too and discussed with mum how to use our joint nectar card points and current refer-a-friend deals at the moment.

Entered a handful of competitions.

Cashed in Consumer Pulse vouchers.

Not a bad effort I think.

poppyoscar_3

Fabulous effort actually!

You really seem to have it sorted at the moment!

Looking forward to following how you get on.

PO xx