The march to financial freedom

Ali-OK

Morning Broggers

Happy May Day and a lovely sunny one we have here :j Thought I'd make it a Bank Holiday special for you with the mortgage interest post (but not sure you've seen it - 4 back?) and the pension one

Yes, plan is still with the Pooh-dential, but a move is on the cards to a SIPP later in the year (after election/new gubberment hoo haa has settled) but in the interim still wise to put more money in and get some growth from it and the tax relief too. You're spot on, it's to reduce the charges, as my plan is old and before the changes came in. The funds I'm in also are not risky, they're mid-level With Profits so I should be looking for more aggressive growth.

I only have the above plan thanks to Lilt as I knew very little indeed

HRT...Higher Rate Tax and not Hormone Replacement Therapy I assume? :rotfl: Being on the latter it took me a while to work that out :rotfl:

I *should* be able to keep up the mortgage OPs at the current size, that is the plan anyway, but with SE you never know so it'll always be a month by month decision.

There's also DS's maintenance that will stop at some point which is a decent amount, I don't expect my ex will tell me when, they'll just stop arriving - possibly on his 16th birthday, so I may have to reduce OPs for DS's last school year (as he's a September birthday) up until he's working (which could be a 6 year trek if he follows through on his current plan of A levels and Uni).

Make hay whilst the sun shines is the plan then

beanielou

Your ex will h ave to continue paying main for your DS as long as he is in full time education(up to age 25 I think but not 100% sure on the 25)

Ali-OK

beanielou wrote: »

Your ex will h ave to continue paying main for your DS as long as he is in full time education(up to age 25 I think but not 100% sure on the 25)

I'd like to think he would, but unfortunately we have a few obstacles to forcing him if he stops...

1) We 'had' a mutually agreed arrangement and good friendly relationship up until 2012 so nothing formal via CSA

2) He moved abroad in 2012

3) He cannot be chased by CSA due to combination of 1) and 2)

So if he stops, it's tough luck on me and DS.

DS refused to have anything to do with him when 2) happened. Even a family counselling session I arranged didn't go well between ex and DS. DS and I still have a good relationship with ex's family though.

Difficult all round to be honest, so I am very grateful he's continued paying (mostly) and the odd missed one I just have to keep calm and carry on

Ali-OK

I'm on a financial deep clean this morning

Bugged by the mortgage ERC, I got the paperwork out. Oh doh! I read it wrong - it's 5% charge of payments made during the fixed period - which means @ £700 I think.

Using MSE's calculator, if I can get a deal 3.27% to 2.93% (depending on fee) it would be cheaper. I would probably have to move to repayment as well, but I can cross that bridge and do feel I could get back on that road now.

Sooo..current provider is doing a 5 yr fix at 2.29% at £954 per month, £495 fee. I think that's a good deal and naturally takes another 4 months off end date by doing a round number of years left (and better than my mate who has just gone onto a 5 yr at 2.39% with his provider). I think I might make a phone call tomorrow morning and see if it's doable in the bank's eyes

This would almost certainly lead to turning my current spanish bank current account into a 1-2-3 one and moving the DDs that would earn cashback. Ooh and a home for the reg saver maturing in June.

Do I have a plan? It would seem so Both a money saving and earning one :j

Just checked my ISA too - 18p in interest added :T

And just to round off, have applied online to Pooh-dential to up contributions to £300 a month nett

Deserve a cuppa after that lot :beer:

beanielou

Ah right Ali~difficult situation indeed

in_need_of_direction

Last time I changed mortgage was within same bank. I explained that I was reluctant to pay the same fee as someone who had no relationship with them. When I said it would probably be a deal breaker as I thought they should reward loyalty, the waived the fee. I work on the principle that if they say no, I won't be any worse off.

Brogden

Hi Ali

HRT - I don't know if men have that? Perhaps it could help my hot flushes though ?

Seriously.......is it not better Ali to stockpile the budgeted extra pension contributions in a savings account and pay them into your new SIPP when its open? It wouldn't alter your tax relief situation providing you did it in this tax year? I'm just thinking about any possible exit penalties and jiggery pokery on with profit funds.....? Is it an idea to speak to the Pooh...?

Sorry........it was bugging me a bit........I may be completely wrong .

Broggers x

Ali-OK

Don't think there's HRT for men Broggers!

I don't know if they'd be any exit penalties for the extra or not (perhaps best I ask Pooh that), there isn't a MVR on the pot as it stands though . I could just skim everything extra over to the 1.29% ISA - doesn't matter if it comes out again as not going to get anywhere near the limit so won't lose out.

And also think that the mortgage ERC charge is on the whole amount borrowed so back to square one if the case . I didn't think I was thick, but goodness, this stuff makes me feel like it! I'll call them tomorrow and ask, just to satisfy myself.

DS has built up a few £2 coins so swapped those with him and have another £20 to bank/save - £41 from the change bucket to go in.

Tried to get Steam and YNAB working - crashed my laptop and then couldn't even open a browser. Sticking with spreadsheets, I've decided

liltdiddylilt

Hello poppet.

Haven't seen a Pooh plan yet that applied MVR or Exit Penalty to upped regular contributions, lump sums possibly but in general the terms for upped contributions remain on the same plan rules as previously. The only difference is they would not be included in a bonus payment calculation methinks. But definitely check with them just in case although they should have told you over the phone if any changes applied to the new portion of your contributions. It isn't like you are setting up a new regular, just upping an old one. If every provider applied penalties to someone increasing pension contributions no-one would do it!

You don't need to use steam for YNAB. Just download the free trial and use your activation code there and it will work without steam. Steam uses too much of my computer space too, hence how I discovered this plan. Try again

Mortgage rate sounds great and INOD's advice even better. They are trying it on with the fee. I am pretty sure if you can go in with some other figures from other banks they will soon drop it. Losing a mortgage like yours for £495 would be rather silly eh! And last week an old mortgage client rang to ask us to remortgage for them now their rate is up. Our own advice was go to your own bank and negotiate first. They are more useful than an IFA charging £1k-ish

xx

Brogden

Deffo try it on with the mortgage - I have heard other people say they succeeded just like INOD !!

I had a Pooh pension plan which I started in the nineties. The first year's contributions plus the first year of any incremental amount was allocated to units with an additional management charge......7% I think as opposed to the standard 1%. Nearly all of the insurance companies did it this way and it was mainly a way for the company to pay themselves back for the commission they had paid to the advisers (the advisers would be paid a new initial commission on the increment.) They did it in different ways but you did have to pay extra charges for increasing your contributions......that's why I think it is wise to check this

Hopefully this doesn't apply to Ali's but her idea of putting the money in the ISA until her new plan is established must be a better and simpler idea

Broggers x