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
    • AliceBanned
    • By AliceBanned 1st Dec 16, 7:17 PM
    • 2,327Posts
    • 1,084Thanks
    AliceBanned
    Shared ownership - refusal again
    • #1
    • 1st Dec 16, 7:17 PM
    Shared ownership - refusal again 1st Dec 16 at 7:17 PM
    I have been posting on and off for a while on this. I bought my shared ownership flat in 2013 (40% share) and have crept into debt during that time more and more though over the past 1.5 years have been a DFW and keep working on it with YNAB.


    Progress is slow, partly I think because I am paying £850pm rent and mortgage, plus all the usual outgoings. I earn just under £32k and work in central London, live just outside so have expensive train fares, and live alone. Not had much of a life since I moved to be honest and I was renting for my whole life beforehand.


    To cut a long story short I saw my lender (Halifax) yesterday and they refused me a bigger mortgage to staircase. My current mortgage is £47k and the value of my share is £89k according to Zoopla. It started off at £62k. I would have thought with the rise in equity and my regular income (same job for 9 years), I could at least staircase to 60-70% but no.


    I am questioning whether it is worth me staying in the flat. I could sell up, use some of the equity to repay the debts, or go on a DMP which I am trying to resist strongly because my credit file is reasonable with no defaults etc at all over the years - just too much use of credit cards and just over £10k debt including my overdraft. Feel I am going round in circles but I am living frugally, just had a bit of bad luck with my car packing up after me spending on getting it fixed blah blah just a few expenses and it sets me back on the debt repayment.


    I am trying to repay £500pm on the debts and have been achieving this for some time (then had some setbacks) and back on track again with no car this time. Still feels like it will take me a long time and Halifax mortgage adviser suggested I go back in a year. I am thinking I could do this with around £5k debt in a year's time (hopefully) but they may just turn me down again. Also service charge has gone up quite a bit and I feel like I am paying out but not achieving a lot, unless I am just panicking unnecessarily/! I am scared that when I am older I will still be paying rent on SO as I am 49 now.


    Other option sell up, repay debts, rent for a year in a houseshare (find a nice one and they are not too pricey here) and then try and buy again but I may not get back in the market if prices go up too much?! Sorry if I sound like I want a crystal ball but I am on my own making these big decisions and stressing about debts, trying to force myself to repay them so quickly that I can't do much else.
    DFW - goal December 2019

    _________________________
Page 2
    • triple choc chip
    • By triple choc chip 13th May 17, 6:52 PM
    • 796 Posts
    • 2,805 Thanks
    triple choc chip
    Hi Alicebanned
    I just wanted to offer some positivity because I've been in your position and lived frugally for 5 yrs to get rid of my debts; it's boring, anti-social and depressing but I promise when you get to the end it's fantastic. It's getting you down but it all seems very 'doable' (Is that a word or did I just make it up?)
    You have enough income to live comfortably once you are debt free, so please don't give up now; this time WILL pass.
    Have you tried the snowball calculator? Once you have a debt free date you can challenge yourself to beat it by chucking any extra at the most expensive debt.
    Your situation is improving by £300 each month which is great! You have a couple of debts that look as if they will be gone in 12 months at which point you can snowball and get rid of a couple more very quickly. By getting rid of the ones with the highest interest you will soon be paying off more than £300 and repaying will really speed up. I truly think in five years time you will be in a really good position. Buying in the South East must surely be a good investment in the long term.
    Last edited by triple choc chip; 13-05-2017 at 6:56 PM.
    Life's greatest satisfactions: Getting the last laugh, having the last word and paying the last instalment.
    Debt Free since 6.8.13
    Saving for Xmas 2017 #3: £369/£650 56.7%
    Emergency fund £1k
    • AliceBanned
    • By AliceBanned 13th May 17, 9:31 PM
    • 2,327 Posts
    • 1,084 Thanks
    AliceBanned
    Thank you triple chic chip. Moral support is exactly what I need. I thought I'd turned a corner. It's just a very long corner and I'm not there yet!

    It's encouraging to think of the debts that will be gone in a year. Yes I am using snowball calculator. And YNAB. 😊
    DFW - goal December 2019

    _________________________
    • AliceBanned
    • By AliceBanned 17th May 17, 6:56 PM
    • 2,327 Posts
    • 1,084 Thanks
    AliceBanned
    I have been told by my employer that I can work from home 2 days a week (previously just one day). This will save me quite a bit in travel costs - down to £110 per month (from £140-160 depending on which mode of transport I use) if I average out over the year and take off annual leave.


    I have a job interview on Friday anyway so might be moving on though I won't take the first job I get offered! I am seriously looking and applying now though.


    Bit tired of the London commute I have to say..


    Not sure what is the right job for me either.
    DFW - goal December 2019

    _________________________
    • Molillie
    • By Molillie 11th Jun 17, 9:06 PM
    • 48 Posts
    • 166 Thanks
    Molillie
    Hi, Alice, I hope things are going well for you. I found Budgetgirl's vlogs on Youtube helped me keep motivated, her situation is different, being in the US, but she has just paid off her debts (not mortgage) after three years of steady work. In general, I do like looking at some of the Youtubers, as well as on here, as it can really help with ideas. One young woman initially amused me by saying that she was only going to have neutral-coloured clothes, and had made a list of what she needed to buy! What she actually did was ebay lots of her other stuff, and used the cash from that to get things from the US equivalent of Charity shops. Personally, I wouldn't really fancy an all neutrals wardrobe, but it helped me examine my own attitude to clothes, and currently I'm on even a charity shop ban after a huge car bill.
    Best wishes for your debt clearance.
    • smem18
    • By smem18 13th Jun 17, 12:10 PM
    • 27 Posts
    • 8 Thanks
    smem18
    I don't really have any good advice but I just wanted to comment to say hang in there. It might seem like a really long road ahead and it is horrible but relatively speaking, this will be a short period in the whole of your life. You will be debt free one day if you just keep working hard and chipping away at it. A new job could be just around the corner that pays more, and even if it isn't, just think where you will be this time next year and how much better off you will be! A year flys by. You can do this!
    • AliceBanned
    • By AliceBanned 16th Jun 17, 7:45 PM
    • 2,327 Posts
    • 1,084 Thanks
    AliceBanned
    Hi, Alice, I hope things are going well for you. I found Budgetgirl's vlogs on Youtube helped me keep motivated, her situation is different, being in the US, but she has just paid off her debts (not mortgage) after three years of steady work. In general, I do like looking at some of the Youtubers, as well as on here, as it can really help with ideas. One young woman initially amused me by saying that she was only going to have neutral-coloured clothes, and had made a list of what she needed to buy! What she actually did was ebay lots of her other stuff, and used the cash from that to get things from the US equivalent of Charity shops. Personally, I wouldn't really fancy an all neutrals wardrobe, but it helped me examine my own attitude to clothes, and currently I'm on even a charity shop ban after a huge car bill.
    Best wishes for your debt clearance.
    Originally posted by Molillie
    Thank you Molillie. I will check out the youtube vlogs.


    I've saved a lot by not buying clothes but recently started buying some, mainly in charity shops. I thought I would buy no clothes for a year (apart from underwear lol) and I managed it and found I didn't want to splurge after that. It felt like a waste of money. Some of my favourite clothes which I get compliments on when I wear were bought in charity shops.


    I've also learnt to go without holidays and do cheap things. The debt is going down slowly.


    And...I had an interview on Tuesday and got a call today - I got the job!! I really liked the place and am really in need of a change. The commute is better and cheaper too and I can work from one 1-2 days. I've only applied for 3 jobs over the past year so it was much easier than I thought! I think other people value my skills more than I do. I think depression sometimes gets in the way and I can't see things realistically. But I was ecstatic as was really looking forward to tell my employer, who behaves atrociously at times, goodbye (politely of course).


    New salary £36,500..north London.30 days' leave rising to 40 with time off in lieu.
    DFW - goal December 2019

    _________________________
    • AliceBanned
    • By AliceBanned 16th Jun 17, 7:47 PM
    • 2,327 Posts
    • 1,084 Thanks
    AliceBanned
    I don't really have any good advice but I just wanted to comment to say hang in there. It might seem like a really long road ahead and it is horrible but relatively speaking, this will be a short period in the whole of your life. You will be debt free one day if you just keep working hard and chipping away at it. A new job could be just around the corner that pays more, and even if it isn't, just think where you will be this time next year and how much better off you will be! A year flys by. You can do this!
    Originally posted by smem18
    Thanks smem18. That's very encouraging. I need the moral support. As you will see from my previous post, something came good and I handed in my notice today for a better paid (and hopefully better conditions) job. . I had an interview earlier this week and they called me back and offered me the job! They were interviewing for 2 days and said there was tough competition. Has really boosted my confidence.
    DFW - goal December 2019

    _________________________
    • SuboJvR
    • By SuboJvR 16th Jun 17, 9:31 PM
    • 307 Posts
    • 199 Thanks
    SuboJvR
    Just wanted to offer some encouragement, and congratulations on the new job!

    Debt can be so demoralising, but try and focus on all that you have achieved.

    Even being able to face up to the debt head on and make a plan to tackle it is such a monumental step that so many are scared of doing.

    Well done, keep going!!!
    • AliceBanned
    • By AliceBanned 17th Jun 17, 3:09 PM
    • 2,327 Posts
    • 1,084 Thanks
    AliceBanned
    Thanks SuBoJVR. Slow and steady progress.
    Had a couple of beers last night and going out again to celebrate later.
    DFW - goal December 2019

    _________________________
    • Molillie
    • By Molillie 20th Jun 17, 11:06 PM
    • 48 Posts
    • 166 Thanks
    Molillie
    So pleased with the job news, I hope it is a turning point for you!
    • AliceBanned
    • By AliceBanned 21st Jun 17, 8:19 AM
    • 2,327 Posts
    • 1,084 Thanks
    AliceBanned
    Thanks Molillie. I have been stuck in a bit of a rut for a while. Although I enjoyed some of the content of my current job and was never bored, I need something that can bring opportunities. I feel I am being taken for granted.


    It's strange how people show appreciation when you leave - managers are emailing me saying sorry to see me go 'especially after so long' and my manager is desperately trying to get me to write handover stuff down as he knows he is losing a lot of corporate knowledge. Tough.
    DFW - goal December 2019

    _________________________
    • NinaSwiss
    • By NinaSwiss 21st Jun 17, 11:31 AM
    • 186 Posts
    • 92 Thanks
    NinaSwiss
    Hi Alice,
    Just read this thread and just wanted to say well done on the new job. Finances aside, it really does bolster confidence.

    On a seperate note, if you have an extra bedroom, you could consider renting it out. The rent a room scheme allows you to earn upto £625 each month tax free. Something to consider.
    Working towards:
    *House Purchase (2015)
    *Top-up pension (2016) *Clear CC (2016)
    *Mortgage
    Overpayment(50% LTV by Jan 2020) *Clear student Loan(by Jan 2020)*Saving for a Car purchase(2017)!
    *2017 DIY projects *Making the most of life!!!
    • AliceBanned
    • By AliceBanned 22nd Jun 17, 7:04 AM
    • 2,327 Posts
    • 1,084 Thanks
    AliceBanned
    Hi Alice,
    Just read this thread and just wanted to say well done on the new job. Finances aside, it really does bolster confidence.

    On a seperate note, if you have an extra bedroom, you could consider renting it out. The rent a room scheme allows you to earn upto £625 each month tax free. Something to consider.
    Originally posted by NinaSwiss
    Thanks NinaSwiss. I agree it will be a confidence boost, much needed!


    I don't have a separate bedroom but am considering moving to a two-bed place if I can afford it in the future and doing just that. With prices the way they are in the south east I may not be able to but I will definitely consider. I will have to see how my new commute works out as this will give me more flexibility on where I live as I won't be commuting to central London.
    DFW - goal December 2019

    _________________________
    • AliceBanned
    • By AliceBanned 11th Aug 17, 4:24 PM
    • 2,327 Posts
    • 1,084 Thanks
    AliceBanned
    Hello again


    I realise that the decision re my flat/shared ownership may be made for me. I have just started looking into the lease extension as I realise it only has 84 years left at the end of the year.


    I have just fixed the mortgage for 2 years and the plan is to stay for most of that, but make plans to move on after that.


    The reason is, unless I own 100% I can't apply for lease extension! I presume letting the lease get lower than 80 years won't be a good situation at all. I also can't foresee staircasing to 100%. Maybe 80% at the most. At least a decision has been made really because I need to be in a situation which is sensible financially. As my new job doesn't require such close proximity to London I am more flexible on where I can live.


    I feel sad about this as a love the area I'm in. I need to find somewhere fairly quiet still. But I can't see myself staying beyond 2 years and risk losing value on the property or not selling it easily (though it is in a very desirable area 30 mins to London and 5 mins to the station).


    Any advice would be appreciated - I am new to leases etc.
    DFW - goal December 2019

    _________________________
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

686Posts Today

6,305Users online

Martin's Twitter