Would like to become MF- any tips/ advice welcome

JimmyTheWig

Don't bother selling the car if you are happy driving it.
Regardless of what it is costing you (unless you are getting regular serious repair bills) it will be cheapest to keep it until it dies.

I would suggest an annual service, though. It's not the same as the MOT, but I normally book ours in for both together.

Money777

Now about erc....

it says 'basis for calculating erc- the amount repaid or transferred x 3%' payable until 02/10/2012. Maximum charge you could pay £5119.20.

Then it says in next line of table under 'basis for calc erc' "incentive you chose for this mortgage" payable until 2/07/2011- £1200.... Whats that?- I didnt get that for choosing this mortgage.

So it says total max £6319.20 plus fee currently 225.


Sorry if this doesn't make sense or wasnt the info you wanted!

Thank you for your help

Money777

Thank you for that advice Jimmy... :beer:

getmore4less

OK I think next road tax will be £235 J band so thats £20pm.

Agree if you like it and had that work done you have nothing due for a while might as well keep it.

'breakdown repair cover'

the AA one requires servicing to manufacturers schedules.
http://www.theaa.com/breakdownrepaircover/
most will so when was the last time it had normal servicing like oil spark plugs filter?

Might be worth thinking about this with the next MOT if you want this breakdown cover to pay out.

Money777

Oh right I don't think I have it serviced... will look into this. Yes its the aa one.

Sorry do you mean the tax is going to go up more?! my friends don't pay anywhere near this for their road tax!

getmore4less

Money777 wrote: »

Sorry do you mean the tax is going to go up more?! my friends don't pay anywhere near this for their road tax!

If the cuurent tax was £215(J) then next one is £235
http://www.direct.gov.uk/en/Motoring/OwningAVehicle/HowToTaxYourVehicle/DG_10012524

We pay £30 on one car and £205 on the other.

Money777

Oh I thought that was the same every year!

Thank you for all your help really apreciate it :beer:

getmore4less

Money777 wrote: »

Oh I thought that was the same every year!

Last year we paid £35 and £185

Keep an ear out for any changes in the budgets.


On a general point when it comes to overpayments and spending it is all about priorities and lots of little spends add up so it can be a good idea to do annual totals so you can compare the value for money against each other and what it can do to the debt.

getmore4less

getmore4less wrote: »

On a general point when it comes to overpayments and spending it is all about priorities and lots of little spends add up so it can be a good idea to do annual totals so you can compare the value for money against each other and what it can do to the debt.

To follow up on this point with an example.
You need to establish the needs and the wants.
The goal is to meet our needs as cheaply as possible and to understand the true cost of the wants to esablish the trade off values

I will use the mobile for this but you can do it for all spends.


Most people don't absolutely need a mobile phone so this is a 100% discretionary spend..

But there are times when a mobile would be really handy and can be considered as almost a need, emergencies( car crash) or contact while away from home etc not all essential but these days considered as such.
This means there is some value in having a mobile the trick is to estimate what's that worth maximum or can you meet these needs for free.

These days mobile have loads of other features that are of varying use all discretionary but of value to each in there own way.
So again it is what are these worth


For a mobile a basic PAYG will do the job but there is another way that is even cheaper, contracts that are free or close to free with cash backs or other methods.

The advantage of these is if you pick correctly not only do you get all your needs fullfilled bit some of the wants as well for around Zero cost.


But I here you say(:)) £25pm is nothing I can easly afford it and sure you can BUT at what cost.

Lets say you run this phone for a year thats £300, allready more than the car tax or 6month petrol or 6month clothes or a 50% bigger holiday fund.

Remember you could have had a phone for free for the year and still had loads of minutes and text if the right deal came up.

The alternative is that this could have been another £300 off the mortgage and thats going to cost you interest every year till you pay it off. @ 5.99% over 20 years thats £2.15pm or if you look at 13y with your £500pm overpayment £2.77 of that overpayment is because you spent £300 on a mobile(total over 13y is £433)

Now lets say you have fancy phones for 5 years now you 8 years left and nearly £15pm of that £500 overpayment is paying for those 5 years of a fancy phones that you could have not bothered with. Or another way to look at it is the £25pm phone is now costing £40pm or 5 years of phones will cost £2052 over 13years

Probably still worth having the phone but it is more than just that £25-£30pm.

Money777

Thanks for that... really makes you think when you put it like that!