MFW, disabled & going Part-Time

LindsayO

About 8 months ago I started paying into an offset account. I have managed to save a fair chunk of money. I am disabled with a progressive condition and was hoping to be MF in three years. Unfortunately I am no longer able to keep going full-time at work, but have been able to negotiate a reduction in hours. This means less money of course, so less money to put into the offset account.

My new contract is 60% so I could work a 3 day week, but I think I could manage a 4 day week. I work at a university and so hope to be able to work 4 days during term time and then have more time off during the university vacation time. MY department seems happy with this, and I'm hoping to be able to get a part-time summer job, and kep paying into the offset account.

It's going to be a struggle, but I really want to be MF before I get so sick I can't work at all. I guess I#m just posting for a bit of moral support, but any practical suggestions greatly appreciated too

StuartGMC

Lindsay
Welcome and best wishes with the MFW date in such difficult circumstances. Offset can work well, but, do be careful in terms of any impact savings may have on means tested benefits later. If you do get worse and need to claim before you've cleared the mortgage the savings would possibly count against you. Do get advice, but, for example taking a large lumpsum and paying down the mortgage before then claiming may be seen as deliberate reduction in assets. It may mean you want to look at saving on offset then dropping in sums so you remain under a limit that would affect you otherwise. I assume as you are offset there is no limit to early repayments and the total OP per year?

As I'm not sure about the restrictions related to the financial support and impact this may have upon you, I would recommend seeking professional advice from specialist advisors.

On more positive matters, will you need to save towards a replacement car later and other needs which may arise once you stop work? Planning these into your budget may be worthwhile.

It's great to see your employer is supportive and I wish you well. If you don't have a household budgeting spreadsheet I can send one if you PM me (in fact it includes the offset showing the effective interest rate as that is what we are on). Best wishes.

LindsayO

Thanks Struart,
Haddened thought about the impact on benefits of paying the offset into the mortgage, so will have to look into that. Won't need to save for a car, since I can't drive, but there may be other things like that to consider
Will pm you for the speadsheet
Thanks again
Lindsay

Tesco_points_addict

Well done you! I have to warn you this place is addictive, you seem to have the correct mind set and i'm sure you will be fine. You will get extra benefits if you have to lower your work hours more in the future.

Good luck to you, enjoy the ride.

TPAx

setmefree2

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