What are my options - beginning to really worry

TrickyDicky101

I would post up a full Statement of Affairs over at the Debt-Free Wannabees board as there are people there that will have great ideas on how to scrimp and save and reduce your outgoings.

As you have identified, although your mortgage rate is currently far from terrible (albeit not the best either), you are at risk should interest rates rise in the future.

Any overpayments to the mortgage (doesn't actually matter which part, although I would probably target the Repayment element first to retain maximum flexibility should you need to reduce payment levels in future) will reduce your overall debt and therefore will reduce the impact of rate rises on you in the future.

Salli1981

You've all made me feel so much better that I've just rung Halifax, and they informed me that the overmpaments of around £1200 I've made over the last year, have been going onto my account 'globally' so they weren't specifically paying off the interest only portion, which is the largest amount that's not moving each month.
So she agreed to go back to the last 12 months and reallocate all of those payments, and gave me details to set up a standing order of £100 a month, to the CORRECT sub account - which I've now set up.


I think if I can manage to do this for 2-3 years and then reassess, I'll be in a better position to look at things again.


Have I done the right thing?


Thanks again all for your help - I needed the leg up to do something
Salli

Daniel54

Salli1981 wrote: »

My husbands pension is from 15 years with ICL computers which he took voluntary redundancy from about 15 years ago - but he tells me it's really rubbish - although he doesn't know what it is, or hasn't told me! So I assume it would be discounted from our calculations as it has been frozen.

His pension is not rubbish and is not frozen.It is a valuable defined benefit pension which has been increasing by inflation since he left.

This should be an important part of your financial planning and I would strongly suggest you/he contacts the administrator to ask for an update of the expected benefits at age 60.The scheme will also have the option of taking up to 25% as a tax free lump sum which could help with your mortgage issues.

If you have any questions I would suggest asking on the pensions board.

Link to the ICL pension site is below

https://fujitsu.pensiondetails.co.uk/altairMSSWeb/iclPlan;jsessionid=vHedRp2cgMPQMYa-rU1d24m9

Let_Us_See

You need to find a mortgage adviser (ask friends, work colleagues and relatives for a recommendation) and discuss ALL your options for now and in the future. Even if you remain with Halifax there are still options available.

The clock is ticking, but time is on your side, and as you have recognised, you need to take action now.