Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • michelle09
    • By michelle09 1st Jan 17, 4:24 PM
    • 572Posts
    • 2,671Thanks
    michelle09
    Plodding determinedly up a 300k mountain!
    • #1
    • 1st Jan 17, 4:24 PM
    Plodding determinedly up a 300k mountain! 1st Jan 17 at 4:24 PM
    Hi everyone! I have another thread on here but it is seriously out of date, so I figured I will start afresh. New year, new targets and all that.

    OH and I completed on our first house in May 2016. We had a sizeable deposit due to my ability to save and OH's inheritance. We could have afforded a decent flat but decided to buy a slightly rundown 3 bed end of terraced house and do it up while living in it. This seemed like a much better idea before we were living somewhere with a smashed in door, no hot water and only lighting in part of the house. So far we have plunged 20k into repairs (which sounds like a lot, but the doors, windows, bathroom, cloakroom, boiler, radiators, some of the wiring and floors are brand new). It's certainly been a character building experience, from turning up after completion to finding the old owner still living here, to getting the first batch of wiring fixed and discovering that every lightswitch in the house now turned on the kitchen light, but we are getting there slowly.

    The basic floorplan of the house we love, so once we are finished doing it up it will be brilliant. It's also in a great location, we are in London - hence the obscene price - but we are two minutes from the underground, can be in zone 1 in fifteen minutes from our front door, but can also be on the motorway out of London in the same time by car.

    We are now seeing the light at the end of the repairs, so in 2017 I want to start making a serious dent in our mortgage. I have taken on a second job and we have two friends renting our spare rooms - at mates rates - so it is a good time to start reducing the crazy interest rates!

    Figures -
    House Price: £440,000 *gulps*
    Mortgage: £259,700.00
    Student Loan: £19,103.29
    Repairs Estimate: £20k
    Monthly Mortgage Repayment: £940.87. 1.74% interest, lifetime tracker.


    I know that students loans are not a problem debt, but our aim is to try and clear the whole lot by the time OH is 40. Which gives us 13 years. This might be too much of a reach, but I would rather aim high and fall slightly low than not push. Though I may be relying on OH's lottery tickets actually paying off!

    Going to check out other diaries too, hopefully the support here will help.
    Last edited by michelle09; 01-01-2017 at 4:37 PM.
Page 1
    • michelle09
    • By michelle09 1st Jan 17, 4:36 PM
    • 572 Posts
    • 2,671 Thanks
    michelle09
    • #2
    • 1st Jan 17, 4:36 PM
    • #2
    • 1st Jan 17, 4:36 PM
    SoA for anyone who can potentially spot some holes in my finances! Both OH and I work for the emergency services, which means shifts and overtime. The figures are a rough estimate of our take home salaries. The additional income is what we will take in rent in 2017 - it just hits the limit of the rent a room scheme allowance.

    Our medical expenses are quite high because we are paying for private physiotherapy. On the waiting list for NHS, but if I can't walk, I can't get to work, so currently sucking it up and paying private.

    Our other major expense is the gym - OH and I pay £50 a month (combined) for the local gym. Doubt we would find it cheaper in London, and I can't run like I used to due to knee damage. Swimming is much easier on the joints!

    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 4
    Number of cars owned.................... 1

    Monthly Income Details

    Monthly income after tax................ 2400
    Partners monthly income after tax....... 1750
    Other income............................ 600
    Total monthly income.................... 4748


    Monthly Expense Details

    Mortgage................................ 940

    Management charge (leasehold property).. 13.85
    Council tax............................. 147
    Electricity............................. 29.5
    Gas..................................... 45.06
    Water rates............................. 36
    Mobile phone............................ 48.38
    TV Licence.............................. 12.18
    Internet Services....................... 30.02
    Groceries etc. ......................... 100
    Petrol/diesel........................... 10
    Car Insurance........................... 50
    Car maintenance (including MOT)......... 20
    Other travel............................ 180
    Medical (prescriptions, dentist etc).... 40
    Buildings insurance..................... 41.67
    Life assurance ......................... 18.9
    Presents (birthday, christmas etc)...... 20
    Haircuts................................ 10
    Entertainment........................... 100
    Holiday................................. 100
    Emergency fund.......................... 1000
    Total monthly expenses.................. 2992.56



    Assets

    Cash.................................... 5000
    House value (Gross)..................... 440000
    Car(s).................................. 5000
    Total Assets............................ 450000



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 259700...(940)......1.74
    Total secured & HP debts...... 259700....-.........-



    Monthly Budget Summary

    Total monthly income.................... 4,750
    Expenses (including HP & secured debts). 2,992.56
    Available for debt repayments........... 1,757.44
    Amount left after debt repayments....... 1,757.44


    Personal Balance Sheet Summary
    Total assets (things you own)........... 450,000
    Total HP & Secured debt................. -259,700
    Net Assets.............................. 190,300


    Created using the SOA calculator at www.stoozing.com.
    Reproduced on Moneysavingexpert with permission, using Firefox browser.
    Last edited by michelle09; 01-01-2017 at 5:28 PM.
    • gd49
    • By gd49 1st Jan 17, 5:19 PM
    • 18 Posts
    • 16 Thanks
    gd49
    • #3
    • 1st Jan 17, 5:19 PM
    • #3
    • 1st Jan 17, 5:19 PM
    I think spending 25 a month on groceries is a bit optimistic! If you're out of contract for your internet might be worth seeing if you can reduce that, though with 4 adults you'll probably want fibre rather than ADSL.

    Otherwise good luck, looks like you should still have the potential to make some overpayments, what emergency fund are you targeting? Our situation is similar except we spent all our money on a wedding last year, hoping to make some overpayments once our emergency fund is rebuilt!
    • michelle09
    • By michelle09 1st Jan 17, 5:27 PM
    • 572 Posts
    • 2,671 Thanks
    michelle09
    • #4
    • 1st Jan 17, 5:27 PM
    • #4
    • 1st Jan 17, 5:27 PM
    Ah, you're right! I meant £25/week.

    We have about 9 months left on our contract for internet - we went with Virgin because signal here isn't great. My mobile barely works. We paid out for extra because OH likes to stream (and I keep vetoing sky TV, because it's so crazy expensive). Will investigate other options later in the year though, particularly once we don't have rent money coming in.

    Looking for a 10k emergency fund? But also using that as repairs, so this year will stick 5k into that and 7k into repairs. Hoping that will get us a new kitchen by the end of the year. Ours is not really suitable for use.

    We had a 2015 wedding, they definitely drain your funds! Do you have a diary here too?
    • gd49
    • By gd49 1st Jan 17, 5:50 PM
    • 18 Posts
    • 16 Thanks
    gd49
    • #5
    • 1st Jan 17, 5:50 PM
    • #5
    • 1st Jan 17, 5:50 PM
    Wow you're still very disciplined on your groceries, we're closer to £80 a week! A part of that is because my partner is gluten and dairy free and those foods are more expensive, and I'm too lazy to go round Aldi and Lidl, preferring just to do a weekly online shop with Tescos!

    We're aiming for about 10k emergency fund too, it's not 6 months wages but it feels right. Cars also likely to need replacing at some point soon so need to have about 5k aside for that. Once you do have your emergency fund you should be able to really start attacking the mortgage, im looking forward to that time!

    I don't have a diary, I'm not very good at doing MSE things so it wouldn't get updated very often!
    • NorthernMonkey1
    • By NorthernMonkey1 1st Jan 17, 6:07 PM
    • 235 Posts
    • 907 Thanks
    NorthernMonkey1
    • #6
    • 1st Jan 17, 6:07 PM
    • #6
    • 1st Jan 17, 6:07 PM
    How long are you tied into your phone contract for? I get 16gb data and 200 minutes with three for £17. I use facetime for nearly all my calls, so dont get anywhere near 200 minutes
    • michelle09
    • By michelle09 2nd Jan 17, 8:25 PM
    • 572 Posts
    • 2,671 Thanks
    michelle09
    • #7
    • 2nd Jan 17, 8:25 PM
    • #7
    • 2nd Jan 17, 8:25 PM
    gd49 - We try to be! These days we shop in Asda, and if you go first thing on the weekend morning, there is loads on the reduced section. Last week they had all their Christmas veg down to 10 or 20p a bag. Freezer is stuffed full of veg. I am gluten free as well, but you can get around it. Try the allergy shows for loads of free/cheap food. And scout the reduced sections - bread normally ends up on there. I can generally get the GF loaves for under £1.

    NorthernMonkey1 - That figure is for two phone contracts - £22 and £26. Mine (£22) is tied until May. Currently with EE but I don't get mobile signal in the house so will definitely be switching. OH is on O2 and we abuse the O2 priorities enough that it is a decent enough deal.

    Does that £17 include a handset?
    • michelle09
    • By michelle09 3rd Jan 17, 9:04 PM
    • 572 Posts
    • 2,671 Thanks
    michelle09
    • #8
    • 3rd Jan 17, 9:04 PM
    • #8
    • 3rd Jan 17, 9:04 PM
    Mortgage day! Which also turned out to be the day we paid our gym membership, so it's been a pricey one. We got a deal on our gym membership so paid £300/year each. As long as we use it regularly, then it's not a bad spend.

    We also started getting quotes to replace our skylight windows. They're 17 years old, wooden, and I'm not sure if one is starting to rot slightly. Current quotes range from £2-3k and it looks like they can be done this month. It'll make a dent in this month's OP plans, but the current windows are leaking heat so it is sensible in the long run.

    Today was also rent day for lodger #1, so we picked up £300 there. After the interest deducted from our mortgage payment (£383.94) we were sitting at £259,143.07 so I used half the rent money to OP £143.07 and round it off.

    I also picked up some extra work this week. I private tutor when I can and have a student with an exam next week who wanted tuition tonight, tomorrow and at the weekend. Makes for a long week but it'll be a nice bonus in a few weeks.

    Current Mortgage: £259,000.00
    • michelle09
    • By michelle09 7th Jan 17, 11:13 AM
    • 572 Posts
    • 2,671 Thanks
    michelle09
    • #9
    • 7th Jan 17, 11:13 AM
    • #9
    • 7th Jan 17, 11:13 AM
    It's the weekend! And for us, it's the one weekend a month OH and I get off together (the joys of shift work). Trying to keep costs down so we can pay for the windows, so we had a large fried breakfast and will shortly be heading off to the gym so OH can watch the FA cup match while we're working out.

    This evening we're going to a secret cinema event in London that my brother and his partner bought us tickets for at Christmas. Looking forward to it!

    Today is rent day for lodger #2 so I also put another £100 on the mortgage.

    Current balance: £258,900.00
    • CathT
    • By CathT 8th Jan 17, 8:24 AM
    • 5,419 Posts
    • 37,569 Thanks
    CathT
    Hi Michelle, we no longer do shift work but I remember it well. Having one day off together a month was pretty grim! All the small efforts with the mortgage will soon add up. We shop at @ldi mostly and find it so much cheaper that the big supermarkets. Not sure they do any GF stuff but sounds like you've got that sorted. I wandered down the free from food aisle in t3sco he other day and was really shocked at the prices!
    Jan 2018 -
    part 1 - £79,207
    part 2 - £45,863
    Total - £125,070
    • michelle09
    • By michelle09 15th Jan 17, 2:39 PM
    • 572 Posts
    • 2,671 Thanks
    michelle09
    Hi CathT - It has it's advantages, but mostly I would rather be back on standard working hours. Don't think we have an Aldi near us, unfortunately. But there is an Asda and Iceland not that far away and they're both ok.

    Thanks. Hope it will start looking far more manageable soon.
    • michelle09
    • By michelle09 15th Jan 17, 3:20 PM
    • 572 Posts
    • 2,671 Thanks
    michelle09
    Halfway through the month. Mortgage lender sent us our annual statement; we have overpaid £1346 and have knocked two months of our term. When we first moved in I was hoping for more but really did underestimate just how much work we had to do.

    Next month is OH's birthday, so I have booked a guest house for us to have a couple of days away. One advantage of shifts is that I've booked leave when OH is on rest days and we can take advantage of the midweek deals.

    We're insanely busy at work so I picked up 6 hours of paid overtime this week, should get it paid the end of February. Today is my only day off this week so curled up with Netflix to relax a little. Ran through the accounts and managed to glean another £100 to stick on the mortgage.

    Current balance: £258,800.00
    • michelle09
    • By michelle09 18th Jan 17, 7:05 PM
    • 572 Posts
    • 2,671 Thanks
    michelle09
    So today was both good and bad financially! We put down a deposit on our velux windows (£2000) which will be fitted at the end of the month, which will be good in the long term.

    Had some money come in today. Got our £30 cashback from using the Energy Saving club on MSE, finally managed to get one of my tutoring invoices settled from November (£128) and cashed out £9.50 on TopCashBack from Christmas. So put another £100 on the mortgage. I think one student is never going to settle their bill and is refusing all contact which is... infuriating to say the least!

    Current balance: £258,700.00 (2% now paid!)
    Last edited by michelle09; 20-01-2017 at 10:40 PM.
    • Tropically
    • By Tropically 18th Jan 17, 8:40 PM
    • 170 Posts
    • 458 Thanks
    Tropically
    Shame about the student! I hope they come around.
    • michelle09
    • By michelle09 19th Jan 17, 8:53 PM
    • 572 Posts
    • 2,671 Thanks
    michelle09
    Thanks Tropically! I hope so too. I get that private tuition is expensive (one of the reasons I do this as a second job, I enjoy it, it plays to my strengths and it pays far more than my day job), but you also know the costs when you sign up. The agency I use is going to try and recoup the costs by a debt collection agency but I'm not convinced how successful they are, so we shall see.
    • gallygirl
    • By gallygirl 19th Jan 17, 9:15 PM
    • 16,458 Posts
    • 108,062 Thanks
    gallygirl
    You're going great guns . According to your SOA you have around £1,700 a month left over - do you know where that is going (on the house I expect!) - it might be worth keeping a spending diary to make sure you're not creeping over?
    A positive attitude may not solve all your problems, but it will annoy enough people to make it worth the effort
    Mortgage Balance = £0
    "Do what others won't early in life so you can do what others can't later in life"
    • jodles16
    • By jodles16 20th Jan 17, 12:06 PM
    • 1,315 Posts
    • 3,968 Thanks
    jodles16
    Hello! You sound like you have great plans and the work on the house will be worth it all in the end, especially with a good location!

    Well done on your OPs so far!

    Jodles
    MFW2017 #29 1200.24/4524
    MFiT #66
    Overall aim 10,124.20/21,743 (£156,000)
    2016- Jan-£177,472, Apr-£173,195.04, July- £171,417.47 Oct- 169,366
    2017- Jan- 167,347.80 Apr- July- Oct-

    • michelle09
    • By michelle09 20th Jan 17, 11:35 PM
    • 572 Posts
    • 2,671 Thanks
    michelle09
    Gallygirl - You're right, mostly on the house! This month I put £450 on the mortgage as an OP, and the £2000 on the velux windows. My theory is that we are in this for the long haul, and it's nice to have a large surplus, as we never know what is coming. I use the daily expenses app to keep track of all our spending, so far we're ok, although we're only seven months in!

    jodles16 - Thanks Jodles. It's amazing how much of a difference it has made already. Looked at the photos from the EA advert earlier today- I can't believe how different is all looks.
    • michelle09
    • By michelle09 25th Jan 17, 9:30 PM
    • 572 Posts
    • 2,671 Thanks
    michelle09
    Not been a great week down here. My grandfather was taken to hospital last week and sadly he passed on Sunday. The hospital phoned on Sunday morning and thankfully we made it in time to say our goodbyes while he was sat up and still recognised us.

    Means there have been a few expenditures that we weren't planning but I can't regret. Train fares, an extra tank of petrol, hospital car parking and a couple of takeaways because I really didn't have it in me to get around the lack of oven in our kitchen for once. Also, OH was truly wonderful in so many ways and I bought us some Lola's cupcakes (OH loves them) as a thank you for everything.

    Before we lost him, my OH did get paid, and my runner student finally settled their invoice so I put another £200 on the mortgage. Will worry about finances again after the funeral.

    Current balance: £258,500.00
    • Kittenkirst
    • By Kittenkirst 25th Jan 17, 9:36 PM
    • 1,702 Posts
    • 9,035 Thanks
    Kittenkirst
    So sorry to hear your sad news Michelle, look after yourself (& your Oh) at such a tough time. X
    2018 MFW #20 - OP £391.44/ £3000 13%

    Emergency fund £4K/ £6k
    Mortgage Oct '16 £170.995 LTV 90% end: Nov 2041
    Overpayments 2016 £255.50 2017 £2600.40
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

79Posts Today

2,920Users online

Martin's Twitter