Getting my head around a major change of plans.......

Habibiboo

:wave:

Just to say hi and good luck with your endeavours, BusyMum. Things we have in common:
Deficit type current account mortgage ~ I like mine though (apart from the interest rate) as any OPs show up straightaway and I can see the total reducing almost daily.
Hubby who doesn't do self-denial. He's a wonderful and kind man but his mantra is he'd rather have a short, happy life rather than a long, boring one! Am trying to get through that short-term skint can bring a greater long-term happiness that money can't buy etc, but I guess you know how that conversation goes!
Also mum of 3 but with 2 dogs!
Agree about tackling the food budget. Our biggest saver has been following an MSE version of the 5:2 diet, swapping 2 dinners a week for soup. Has saved us all kinds of pounds!

Best of luck to you!

IainHL

mrcow has expressed what I thought when I read the advice the IFA had given you.

I think I too would be inclined to pay off the mortgage, which I presume would significantly reduce your outgoings (I reckon over £400 per month in interest alone?). This in turn would reduce the amount your DH would need to earn "to make up the shortfall".

Busymumofthreeplusdog

Financial advisor seems to think he can get us a better return on the investment than the cost of the interest on the mortgage. Mrcow naively I hadn't considered his commission! I so need to get more money savy!
Habibiboo I've been making a lot of soup lately but never thought of having it for main meal! I'm liking that idea, suspect DS1&2 will want half a loaf of bread with it but as OH makes pretty good hm bread that shouldn't be an issue!

Busymumofthreeplusdog

Oh must just add OH has just turned 50! While he is retiring from this job he isn't retiring from working life completely, at least not while our small peeps are still at school!

RainbowBridgeReturns

What a great position to be in though, semi-retirement at 50! and a wise wife who is going to make sure that his lump sum stays lumpy.

jackieblack

Busymumofthreeplusdog wrote: »

Financial advisor seems to think he can get us a better return on the investment than the cost of the interest on the mortgage. Mrcow naively I hadn't considered his commission! I so need to get more money savy!

But what the FA won't have factored in is the Peace Of Mind you'll have from paying off the mortgage. Once it's gone, that's a massive financial burden lifted and no danger of it 'creeping up' again.
You can't put a financial value on that

Muser1

Welcome and what a fab position to be in!

I'd pay off the mortgage too.

Will be subscribing. x

DigForVictory

Changes are usually a bit rough, but if you have the chance to pay off your mortgage, I'd grab it with both hands outstretched as that's one substantial thing less to pay every month.

This eases *some* worries about husband spending!

As for food shopping - if you haven't an Aldi or Lidl nearby, then do you know when the yellow stickers go on at your usual supermarkets? A slightly awkward shopping time is worth if to feed the three more affordably!

All the very best!

mrcow

Busymumofthreeplusdog wrote: »

Financial advisor seems to think he can get us a better return on the investment than the cost of the interest on the mortgage. Mrcow naively I hadn't considered his commission! I so need to get more money savy!

Also consider any set up fees and the length of term of the mortgage deal - you may be looking at having to set up another mortgage deal up in 3 years time!.......another set up fee and more commission for him.

Also - he has made it quite clear that any investment is a gamble hasn't he? You could lose money......not just your interest, but your capital too. All that money that you spent years saving.

As I said, it's easy to gamble with other people's money. It's just paper pushing to him. But in this current climate, I query how much "better off" he could make you in real terms.

I'm not trying to be all "doom and gloom", obviously investing CAN be a good idea to some.....but I've yet to come across an IFA who is a realist when it comes to sealing a deal. They will paint you the rosy picture with best scenario figures and leave the small print to you. Sometimes it's good to look at the more sobering other side of the coin.

Habibiboo

Busymumofthreeplusdog wrote: »

Financial advisor seems to think he can get us a better return on the investment than the cost of the interest on the mortgage. Mrcow naively I hadn't considered his commission! I so need to get more money savy!
Habibiboo I've been making a lot of soup lately but never thought of having it for main meal! I'm liking that idea, suspect DS1&2 will want half a loaf of bread with it but as OH makes pretty good hm bread that shouldn't be an issue!

:wave:

BusyMum, use some of that job lot of lentils you're going to be bulking out your meat dishes with - it makes for hearty, surprisingly filling and cheap and cheerful soups!*

* Disclaimer: we're talking red lentils here, green lentils in soup don't exactly look cheerful by any stretch of the imagination! The kids would probably run a mile! :rotfl:

For what it's worth, I'd aim to pay off the mortgage with the sum of lumps, but in the meantime I'd be overpaying as much as possible (which I guess is what you're already doing / thinking with your frugal planning). That way there might be a little of the lumpy money left for an emergency fund or some kind of retirement treat!