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  • FIRST POST
    • pollyanna24
    • By pollyanna24 11th Jun 15, 1:53 PM
    • 3,482Posts
    • 4,039Thanks
    pollyanna24
    £195,000 mortgage for a single mum!
    • #1
    • 11th Jun 15, 1:53 PM
    £195,000 mortgage for a single mum! 11th Jun 15 at 1:53 PM
    I think I will start another mortgage free diary. I do have one on here somewhere, but the situation has changed somewhat.

    House worth approximately: £340,000
    Current mortgage as of today: £106,962.44
    Equity in house: £233,037.56

    Unfortunately, only half of the equity is mine, so £116,518.78. However, my brother has agreed that if I pay him £100,000 for his half, we will be done and dusted and he will move on and buy his own place with his fianc!e (although by the time we do this, she will be his wife as I will not be buying him out until January).

    I will have a mortgage of approximately £195,000 made up as follows:-
    Current mortgage down to: £105,000 ish by the time we go ahead
    Additional mortgage of £90,000 (I aim to have £10,000 in savings to go towards what I am paying my brother).

    So for now, while I am madly saving to buy him out, I will use this diary as a savings (ish) diary. Then in January, the overpaying will hopefully start in earnest!

    Currently have £4,168.36 in savings which I have saving since the beginning of the year. Before that, any extra money I had would go on the mortgage (with my brother matching me penny for penny).

    I extended our current mortgage to 31 years a month or so ago as I didn't think I would be able to cope with the repayments under the 25 years that would be left on it by myself. They wouldn't let me extend any more than that as they said you couldn't have a mortgage for longer than 40 years and I took out the current mortgage 9 years ago.

    Thought I would add that my initial reason for overpaying is to make the mortgage payments more affordable on a monthly basis, but of course, the overall aim is to be mortgage free earlier than originally intended.

    Thought I would add the previous diary I've just found before everything changed and my brother found love! http://forums.moneysavingexpert.com/showthread.php?t=4123743

    And a diary I did when I thought the only option was to sell up and buy somewhere else cheaper:
    http://forums.moneysavingexpert.com/showthread.php?t=5164098
    Last edited by pollyanna24; 19-01-2016 at 4:23 PM.
    Pink Sproglettes born 2008 and 2010
    House Worth (approx) - £386,000
    Mortgages (3rd November2016) - £188,106.63
    Equity - £197,893.37
Page 7
    • pollyanna24
    • By pollyanna24 12th Aug 16, 10:02 PM
    • 3,482 Posts
    • 4,039 Thanks
    pollyanna24
    Well, I had a fantabulous holiday away and since I've got back, I have put another £500 on the mortgage.

    My total payment is now £770.21, so getting closer to my first target of £750. One of my mortgages is a tracker, so assuming (hoping) that it will go down next month.

    I'm proud of myself that I'm still overpaying, but again, it might have to stop for a while as I am still madly decorating, but pleased with how the house is looking.

    Pretty much painted everywhere, cept the kitchen which my dad is doing next week. I decided (well finances decided) that there is nothing wrong with my kitchen except for a bit of sprucing - I didn't see the point in redoing it only to put everything back in the same place), so it is being painted and all the appliances will match (had to buy a new oven as the current one broke - it's been in the house since I bought it 10 years ago) and I'm getting new handles and kn0bs for the cupboards. And a new sink which is about £20 as the current one is white and everything else is grey/silver.

    I've done everything on a shoestring. Dad painted everything and paint was basic paint, except for one tub of Farrow & Ball which a friend gave me. Was amazed that people pay £67 for a tub of paint, but Dad it was superior paint to any he used before.

    Something that has to wait to next year are a new sofa (would be nice, mine is 10 years old).
    Pink Sproglettes born 2008 and 2010
    House Worth (approx) - £386,000
    Mortgages (3rd November2016) - £188,106.63
    Equity - £197,893.37
    • pollyanna24
    • By pollyanna24 12th Aug 16, 10:06 PM
    • 3,482 Posts
    • 4,039 Thanks
    pollyanna24
    Pink Sproglettes born 2008 and 2010
    House Worth (approx) - £362,000
    Mortgages (3rd July 2016) - £191,113.05
    Equity - £170,886.95


    Pink Sproglettes born 2008 and 2010
    House Worth (approx) - £386,000 (identical house down the road up for this, but mine in better condition)
    Mortgages (5th August 2016) - £190,247.04
    Equity - £195,752.96
    Pink Sproglettes born 2008 and 2010
    House Worth (approx) - £386,000
    Mortgages (3rd November2016) - £188,106.63
    Equity - £197,893.37
    • vicsmiles
    • By vicsmiles 16th Aug 16, 9:12 AM
    • 30 Posts
    • 49 Thanks
    vicsmiles
    HI Pollyanna


    Just stopping by, I had read of your diary and very impressed with the amount you have done. I had a quick question where did you find the local guy to fit your carpets? I am in the middle of getting quotes for ours and they are wildly different I hadn't thought of buying online and getting someone to fit it!


    Glad the renovations are going well
    • pollyanna24
    • By pollyanna24 16th Aug 16, 12:41 PM
    • 3,482 Posts
    • 4,039 Thanks
    pollyanna24
    I think I went on Rated.com or something similar. I put in all the details and waited for someone to contact me.

    I must admit I did expect more to reply as only one did. The one who did the fitting. Luckily, he was great and I would recommend (and have done to other people) him again.

    But if he hadn't replied, then I'm not sure what I would have done. Back to the internet I guess.
    Pink Sproglettes born 2008 and 2010
    House Worth (approx) - £386,000
    Mortgages (3rd November2016) - £188,106.63
    Equity - £197,893.37
    • chelseablue
    • By chelseablue 30th Aug 16, 3:19 PM
    • 1,848 Posts
    • 2,357 Thanks
    chelseablue
    Hi!


    Just wondering how your kitchen is coming along?
    Baby Boy born May 2014

    Mortgage starting balance 26.02.16 £231,294
    • pollyanna24
    • By pollyanna24 27th Sep 16, 12:42 PM
    • 3,482 Posts
    • 4,039 Thanks
    pollyanna24
    Haven't written in here in ages , but I guess it's because I haven't really been doing any overpayments.

    Thanks for asking about my kitchen chelseablue. It's painted which is all I was going to do with for now and it does look fresher and cleaner. I also want to change the knobs and handles on the cupboards just to update them a little, but due to all the expense over the last few months and not getting particularly good paycheques the last few months, I am holding off on any expense at the moment.

    I am £300 overdrawn (well it's on 0% credit cards) and have no emergency fund as I'm using the mortgage overpayment reserve as my emergency fund in case I ever need it. Next month though, I should be back in the black (or red - can never remember which way round it is) as well as paying off this year's car insurance.

    I've noticed I haven't updated my signature since August, so I'll do that in a minute.

    Still loving my house and it all being mine, well 50% of it anyways. Job wise I'm hoping to still be in London for a while as my boss is opening a new company, but it's all a "wait and see how it takes off" kind of thing at the moment.
    Last edited by pollyanna24; 27-09-2016 at 12:48 PM.
    Pink Sproglettes born 2008 and 2010
    House Worth (approx) - £386,000
    Mortgages (3rd November2016) - £188,106.63
    Equity - £197,893.37
    • pollyanna24
    • By pollyanna24 27th Sep 16, 12:44 PM
    • 3,482 Posts
    • 4,039 Thanks
    pollyanna24
    Pink Sproglettes born 2008 and 2010
    House Worth (approx) - £386,000
    Mortgages (5th August 2016) - £190,247.04
    Equity - £195,752.96

    Pink Sproglettes born 2008 and 2010
    House Worth (approx) - £386,000
    Mortgages (3rd September 2016) - £189,865.18
    Equity - £196,134.82
    Pink Sproglettes born 2008 and 2010
    House Worth (approx) - £386,000
    Mortgages (3rd November2016) - £188,106.63
    Equity - £197,893.37
    • pollyanna24
    • By pollyanna24 3rd Oct 16, 12:48 PM
    • 3,482 Posts
    • 4,039 Thanks
    pollyanna24
    Pink Sproglettes born 2008 and 2010
    House Worth (approx) - £386,000
    Mortgages (3rd September 2016) - £189,865.18
    Equity - £196,134.82

    Pink Sproglettes born 2008 and 2010
    House Worth (approx) - £386,000
    Mortgages (3rd October 2016) - £189,465.32
    Equity - £196,534.68
    Pink Sproglettes born 2008 and 2010
    House Worth (approx) - £386,000
    Mortgages (3rd November2016) - £188,106.63
    Equity - £197,893.37
    • pollyanna24
    • By pollyanna24 13th Oct 16, 4:19 PM
    • 3,482 Posts
    • 4,039 Thanks
    pollyanna24
    Feeling a tad down about the whole mortgage thing at the moment. I can't seem to make any headway into it.

    I haven't put any overpayments on in September and October, but I do have £85.44 allocated for them.

    This is done by taking the difference between my original monthly payment for one of my mortgages (£415.64) and the current monthly payment (every time I overpay by £500 or more, the payment goes down) and my current monthly payment (£372.92), I figured that I personally shouldn't benefit from the payment going down, but my mortgage should.

    But I've kept the money as I want to build it up to £500 before making an overpayment.

    Because the overall idea of getting rid of the mortgage is too much for me to comprehend at the moment, my initial goal is to get my two mortgage payments below a monthly amount of £750 (£757.78 at the mo), but even this seems impossible at the moment.

    Little steps, Polly. That's what I gotta keep telling myself.
    Pink Sproglettes born 2008 and 2010
    House Worth (approx) - £386,000
    Mortgages (3rd November2016) - £188,106.63
    Equity - £197,893.37
    • chelseablue
    • By chelseablue 14th Oct 16, 9:06 AM
    • 1,848 Posts
    • 2,357 Thanks
    chelseablue
    Little steps is the way!


    We moved in Feb and I had all these grand plans about overpaying straight away.....think I've done 2 so far


    Went to put the heating on last night and the boiler fired up but the radiators stayed cold, so that'll be money needed to fix that :-/
    Baby Boy born May 2014

    Mortgage starting balance 26.02.16 £231,294
    • pollyanna24
    • By pollyanna24 18th Nov 16, 2:10 PM
    • 3,482 Posts
    • 4,039 Thanks
    pollyanna24
    Because I am getting a bit depressed about finances (trying to save up £500 to make an overpayment on the mortgage just seems to be taking forever), I've decided to look back at my diary and how far I've come.

    19 February.....£200,044.89
    20 February.....£200,000.00
    1 March.....£194,723.57.....£800.50
    5 April.....£192,852.65.....£778.57
    4 May.....£192,449.16.....£774.38
    2 June.....£191,992.71.....£774.38
    3 July.....£191,113.05.....£774.38
    5 August.....£190,259.05.....£772.19
    3 September.....£189,865.18.....£757.78
    2 October.....£189,453.41.....£757.78
    3 November.....£189,076.63.....£757.78

    Not sure if this makes me feel better or not. But the payment has gone down a bit.

    At the moment, I put away £42.72 a month (£415.64 which was the monthly payment before I started overpaying minus £372.92 - my current monthly payment) and will bung it on the mortgage when I get to £500 (and will include any bonus or spare money I have).

    Then the payment will go down by a couple of quid and I will be putting aside a couple of quid more per month. Just feel down by how long it's all taking and thought if I could somehow see it “snowball” in more overpaying amounts in the future, I'd feel better.

    So £42.72 would take 11.70 months to save up £500 (not taking into account any other spare money I might have each month).

    If this goes up to £44.72 (guesstimate of what I will be putting aside each month when the payment goes down), this takes only 11.18 months to save up, so each time I put £500 on the mortgage, it will take less and less time to save up for the next overpayment.

    Has any of this made me feel better? Not sure. Just depressing when you don't see any way of your finances improving and your only hope is to pay less of a mortgage each month and even this is seeming impossible.

    Gosh, I am moany for a Friday afternoon, aren't I?!
    Pink Sproglettes born 2008 and 2010
    House Worth (approx) - £386,000
    Mortgages (3rd November2016) - £188,106.63
    Equity - £197,893.37
    • pollyanna24
    • By pollyanna24 1st Dec 16, 12:18 PM
    • 3,482 Posts
    • 4,039 Thanks
    pollyanna24
    So, the start of another month. And another month where I wonít be doing any overpayments. Ho hum.

    However, I think I will have saved up enough to put a £500 overpayment on in January.

    This will be done by the savings I put by each month for overpayments:-
    £42.72 x 4 = £170.88
    I should have £267.05 left at the end of this month if I stick to my budgets.
    Hopefully, I will get £100 in my Xmas card from the boss.

    £170.88+£267.05+£100 = £537.93.

    This will hopefully make my mortgage payment go down from £372.92 to about £370 odd.

    Cos then I can save £45.64 monthly for an overpayment instead of £42.72.

    Haha, thatís the plan anyways.

    So, an analysis of November.

    Petrol - £46.43. Reasonable. What I expect it to be. Not really a lot I can do about it anyways.

    My girls - £135.07. Over by £35.07. I had a look to see if there was anything that was excessive or a one off or that can be cut back on this month. There was the a pantomime that I paid for (school trip in a week or two) and a runaround place for my younger daughterís birthday.

    £66 was stuff re said daughterís birthday party and various Xmas presents, so I suppose I wonít be spending that again this month.

    Groceries - £195.61. Good. Slightly under budget, but mainly cos Mum buys a lot of the things we eat for dinner things (as she cooks the days Iím at work).

    Me - £181.89. I went over by £31.89 and I don't have to look at my spreadsheets to find out where most of this went. £109.41 of this was on alcohol. Isn't that terrible? So the savings are obvious. Thinking about it, if you take alcohol out of the equation, I only spent £72.48 on myself in November. Sometimes, I think to give myself a break. I don't have loads of clothes or makeup and drink is my thing. But £109.41 a month is £1,312.92 a year! Yeesh! And yes, I am on the alcohol cutting down thread. So much for giving up!

    Again on the me spreadsheet, £28 on Christmas presents and £17 on takeaways. Well, that's not bad, is it?

    So wonder how December will pan out.

    Already spent £4.79 on groceries (stuff bought in November, but they haven't been opened yet) and £2.30 on me. Felt like I needed a treat to start December and bought a baguette for lunch (plus my older daughter only had three slices of salami for her lunchbox left and in case Mum can't get any today, I couldnít eat it, could I? Who am I kidding? I just wanted a nice baguette).

    So £492.91 left in December budget. Canít think of any unusual expenses this month. Just the usual Christmas stuff. I wonít be going out any more than usual, so shouldnít be spending there. Think Iím done with presents, wouldnít mind finding something else for my Mum though.

    Oh and I owe Dad £20 for school pictures that he paid for and Mum for my Avon order (£24 odd).
    Pink Sproglettes born 2008 and 2010
    House Worth (approx) - £386,000
    Mortgages (3rd November2016) - £188,106.63
    Equity - £197,893.37
    • daisy 1571
    • By daisy 1571 1st Dec 16, 1:48 PM
    • 56 Posts
    • 288 Thanks
    daisy 1571
    hi Pollyanna

    you are doing so well but I totally understand how frustrating it is when you want the payments to go down. I used to spend hours looking at the spreadsheets as if i had somehow missed another £1000 a month that would make all the difference but you are doing so well.

    It is normal to flag in the middle cos it is a marathon not a sprint, we all get fed up but the important thing is to just keep going and you will get there eventually and the snowball effect really will be helping you leap forward.

    Not sure if it helps or not but do you get the two "free" months of the council tax in feb/mar ? Maybe you have already allocated that money already, if so sorry.

    I also think it is generally accepted that you can only cut expenses so much, the other step is to increase income. If it is really getting you down is there any way you could take in a lodger as that can be tax free money? I believe there is a website for people just looking for weekday lodgings so they go home at weekends so you would still have a bit of privacy ? Maybe thats a step too far but is there anything else you can think of to up your income ? A change of job to get more wages or less travel costs (sorry if this is clear on your SOA that you don't have travel costs) or even perhaps looking into childminding or something similar to lower any childcare costs.

    I think you are doing really great, take comfort from all the steps you have been doing and one of these days it will all be a bit easier every month.

    take care
    daisy xx
    The difference between what you were yesterday and what you will be tomorrow is what you do today (I think I got this from MSE forum somewhere. If it was you - thankyou)
    • pollyanna24
    • By pollyanna24 1st Dec 16, 2:09 PM
    • 3,482 Posts
    • 4,039 Thanks
    pollyanna24
    Aw, thanks Daisy for replying to my moaning, haha!

    I'm not sure there is anything at the moment that I can do to help things along, but I'm hoping the snowballing effect will make things seem a bit better say, this time next year.

    I could work an extra day at work (at the moment I work 4), but I like having that one day a week where I can drop the girls off at school and pick them up. Plus if I worked the 5 days, I'd have to pay my mum more, pay more tax, and pay more travel. So I'm probably better off as I am.

    Not sure about the lodger idea. I have a reasonably sized 3 bed house in Zone 7. I like the area, but it's a bit remote, so not sure anyone else would. And I can't see a lodger wanting to share with me and two small girls who, after finally getting rid of my brother earlier in the year, really live in the house as we all want to now! Not saying it's a total tip, but we enjoy it and it's lived in, shall we say, haha!

    I'll get there. I just like having my diary to moan to. I've come a long way from even where I was this time last year, I just have to keep telling myself that.

    I think it boils down to, by the age of 35 (where I am now), I thought I'd be more comfortable and not struggling so much and if my ex hadn't left me, we would be comfortable as in able to afford more (there would be the extra wage coming in and only half the mortgage as I had to get another one for £95K to pay off my brother).

    But it is what it is. As it stands, the house will eventually be mine and I don't have to share it with anyone, yay!
    Pink Sproglettes born 2008 and 2010
    House Worth (approx) - £386,000
    Mortgages (3rd November2016) - £188,106.63
    Equity - £197,893.37
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