Should I take voluntary redundancy

Moneysaver199

Tempting as £34k might be, I think it makes sense to stay with your current employer.

The advice about the debt looks good to me. I'm very much against debt and only have a small mortgage having paid off a previous mortgage by paying way over our monthly payment, then moving and again drastically overpaying. A good salary could be used to your advantage, rather than making further purchases when already in debt.

As for the caravan, I agree on trying to get income from it (if not already). As for the sofa, I can see the point of the interest free loan, but it does also increase your loan figures. Sorting your debt will save you a lot of money. The more debt you have the higher your interest rates are, so this must be affecting your mortgage.

Personally I'd stay in the job because you say you like it. Imagine being in debt, on a lower salary and potentially hating your job? Stick with what you like, especially when you know it pays well. See if you can find ways to minimise the debt, then attack your mortgage by looking for a better deal and getting it paid off quicker. If you can do all of that before making any further purchases you will feel a huge improvement.

martinsurrey

don't forget the child benefit gain you make dropping below £50k, that's a £1400 gain a year, equivalent to a £2,400 pay rise in the lower paid job.

Not that I'm suggesting this changes anything in your case, but its an important point to ensure people consider if they read this thread.

getmore4less

martinsurrey wrote: »

don't forget the child benefit gain you make dropping below £50k, that's a £1400 gain a year, equivalent to a £2,400 pay rise in the lower paid job.

Not that I'm suggesting this changes anything in your case, but its an important point to ensure people consider if they read this thread.

Might be worth looking at a bigger pension contribution if the Child benifit kicks back in.

getmore4less

lazer-zxr wrote: »

Debt:
Aim is to get in a position for mortgage choices by end of 2016, NR together and negative equity made this a big challenge.
.

How close are you to any equity are you.?
House value, mortgage, secured loan.

lazer-zxr

getmore4less wrote: »

How close are you to any equity are you.?
House value, mortgage, secured loan.

House Value 185k
Mortgage 143k
Mortgage linked loan (together) 23k

(Was going to aim for 85% LTV before mortgage hunting). Currently mortgage on 4.54%.

Having just done a lot of current account switching to make a few hundred pounds extra, I'll give my credit report a 6 - 12 month rest, while I aim towards the remortgaging target. I'm over paying on the loan element around £250 per month at the moment, and ideally, I'd like to continue overpaying the new mortgage at around £1200 per month.

lazer-zxr

getmore4less wrote: »

Might be worth looking at a bigger pension contribution if the Child benifit kicks back in.

I know this makes sense as a total value, but I feel I need the money in the present, not in the pension.

lazer-zxr

Moneysaver199 wrote: »

Tempting as £34k might be, I think it makes sense to stay with your current employer.

Thanks, I needed a bit reassurance that I'm making the right decision.

Moneysaver199 wrote: »

As for the caravan, I agree on trying to get income from it (if not already).

Its a caravan that tows behind my car, and wouldn't feel comfortable with others using it. I know this seems like a missed opportunity, but its a luxury I want for my family alone, it is populated with all of our belongings also.

Moneysaver199 wrote: »

As for the sofa, I can see the point of the interest free loan, but it does also increase your loan figures.

I have the money set aside in a 5% savings account. I'll clear this loan before any mortgage enquiry.

Moneysaver199 wrote: »

Sorting your debt will save you a lot of money. The more debt you have the higher your interest rates are, so this must be affecting your mortgage.

Sorting this debt will change my life. I'm paying out:
£168 p/m on 7k
£208 p/m on 12k
£325 p/m overpayments to clear the together loan
£130 p/m on £1300 loan

Plan is to throw an additional £350 per month at overpayments starting Jan 16.

If I wasn't shelling all of this out I'd be looking at £1100 p/m spare cash, which I'd like to throw most at the mortgage, but alleviate my YNAB stranglehold on household expenses with the rest, which would go down well with the rest of the family.

lazer-zxr

Had a chat with my boss today, we get on really well .... visits my house on boxing day etc .... and showed him my offer from HR of £34k ... and he said yes its a good package, but to think about the long term , and added that even if I wanted to volunteer, neither he or the company would accept .... so I guess the decision has been made for me.

getmore4less

£166k @ 4.54% to get down to (£185k*0.85) £157250
payment needed
12m £1342pm
18m £1099pm
24m £977pm

I think I would review before 85% your total debt is less than 3.5* income and coming down.

A switch to a lower rate might benefit the totals better than waiting. Definately worth crunching some numbers through a broker that can find suitable lenders that will take you on at 90%LTV.

Whats the difference between a 90% and 85% fixed rate 2y deals these days?

There seem to be 2%-2.5% 90% LTV 2y deals around but there will probably be fees on those might find under 3% without fees.

getmore4less

A switch now 90% LTV of the £166k 2.5% fixed over 2 years with a payment of £1100 would leave you with 80% LTV in 2 years.

I would throw the idea onto the Mortgage board to see if any brokers there think there are suitable lenders and what sort of rates you might get