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  • FIRST POST
    • pinknsparkly
    • By pinknsparkly 15th May 17, 6:08 PM
    • 32Posts
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    pinknsparkly
    PinknSparkly's Mortgage Wannabe savings dairy
    • #1
    • 15th May 17, 6:08 PM
    PinknSparkly's Mortgage Wannabe savings dairy 15th May 17 at 6:08 PM
    So this is a savings diary with the intention of getting my husband and I into debt (i.e. a mortgage) as soon as possible

    I am currently finishing up a PhD and as such we won't be in a position to apply for a mortgage until I have been employed for at least 6 months. In addition, I am now at the fun stage of my PhD where I have no income (my bursary/stipend finished in March this year). This puts us in a position where our outgoings are more than our income. We knew this would happen and have pre-planned for it by building up a pot of savings to get us through this.

    My aim therefore, is to use up the minimum possible amount of savings to get us through until I am employed and to then save as much as possible towards a house deposit.

    I estimate that each month we will need to use around £250 - £300 from our savings to cover the short-full in our income.

    Current savings: .................................................. ............£38,000

    Property value: .................................................. ............£275,000
    Stamp duty: .................................................. .....................£3,750
    Other house purchasing expenses: ......................................£2,250
    (assuming £1000 legal fees and £1,250 for everything else)

    House deposit:.................................................. ................£32,000
    (total savings minus house purchase costs)
    LTV:.................................................. ....................................88%

    As you can see, we're already in the excellent position of having a 10% deposit. However, since we will have a minimum of 6 months of two full time incomes before we can get a mortgage, I hope to be able to get us up to a minimum of a 15% deposit by the time we apply. This is a very ambitious target of saving £10,000 in six months (plus whatever we've spent from our savings in the meantime), but what's the point in aiming low, right??

    What do you guys think of the plan? Do my estimates for house purchasing-related costs seem reasonable?

    In the meantime, I'm doing my best to get back to meal planning and making lunches to reduce our expenses as much as possible. The car is also being used as infrequently as possible to save on petrol (I'm mostly working from home at the moment). We've minimised how much we spend out and about (though my husband still ends up getting food out of the house probably once a week or so). We've also planned for no "proper" holidays this year (other than a week camping in South Wales). I'm going to a conference abroad which will be paid for, so that will satisfy my inner travel bug and my husband is quite happy spending his time off at home.
Page 1
    • Skint yet Again
    • By Skint yet Again 15th May 17, 7:37 PM
    • 2,787 Posts
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    Skint yet Again
    • #2
    • 15th May 17, 7:37 PM
    • #2
    • 15th May 17, 7:37 PM
    Hi PinknSparkly just popping in to say sorry I cant help with the house purchasing costs as I bought my last property in 1998, however I look forward to reading your diary and seeing how you get on. I am on a tight budget too so its good to share any moneysaving tips.


    Good luck !
    Aims for 2017 -
    1. save as much as possible. spend as little as possible but still have a social life !
    2. no takeaways !
    3. shop once a week - no "top-up" shops - no unnecessary spending !!
    • savingwannabe
    • By savingwannabe 15th May 17, 8:33 PM
    • 12,718 Posts
    • 46,270 Thanks
    savingwannabe
    • #3
    • 15th May 17, 8:33 PM
    • #3
    • 15th May 17, 8:33 PM
    Hello welcome, I hope you keep doing well and will be happy to watch you. I am sure the house purchasing costs were more than that? But can't remember the exact figures now but they were much more. I just remember the mortgage amount.

    I am so glad you posted as we all help each other along.
    Savings Fund £500/£3000 16%
    Happiness Fund (Dec 1st 2017) £10/£600
    Reminder: I HAVE EVERYTHING I COULD WANT so SAVE!!!!
    • pinknsparkly
    • By pinknsparkly 16th May 17, 12:37 PM
    • 32 Posts
    • 156 Thanks
    pinknsparkly
    • #4
    • 16th May 17, 12:37 PM
    • #4
    • 16th May 17, 12:37 PM
    Hi SkintYetAgain Any and all money saving tips would be extremely welcome! Hopefully we can help and cheer each other along

    Savingwannabe, thanks so much for stopping by and for the welcome. The house purchase costs were complete estimates and (very vaguely) based on the following (from this MSE article http://www.moneysavingexpert.com/mortgages/mortgage-fees-stamp-duty):

    - solicitor fee:............ £1000
    - valuation fee:........... £300
    - conveyancing fees:.... £500
    - land registry fee:.......£300

    Which is a total of £2,100 - I then rounded it up a little to £2,250 to make that plus the stamp duty a nice round £6,000.

    I have ignored any mortgage arrangement fees - depending on where we are at in terms of the deposit we will either pay it upfront or (if our deposit is only just enough to get us say an 85% mortgage instead of a 90% mortgage) then we'll add the arrangement fee to the mortgage and then overpay as fast as possible. We would go for a mortgage that had some sort of flexibility in terms of allowing overpayments with the intention of throwing as much spare money as we can at it.

    We currently live in the property we will be buying and so I've not factored in any moving costs.

    I'll have a bit more of a search later on and see if I can find any more info. We do live in Surrey, so perhaps the solicitor fees will be rather substantially higher than I've listed here

    Edited to add: I've just found this "Cost of Moving" calculator on RightMove: http://www.rightmove.co.uk/cost-of-moving-house.html. For my area it estimates non-stamp duty costs to be about 1% of the purchase price, giving a total cost of around £6,500 which isn't too far off my estimate of £6,000....
    Last edited by pinknsparkly; 16-05-2017 at 12:43 PM.
    • pinknsparkly
    • By pinknsparkly 16th May 17, 1:37 PM
    • 32 Posts
    • 156 Thanks
    pinknsparkly
    • #5
    • 16th May 17, 1:37 PM
    • #5
    • 16th May 17, 1:37 PM
    My tiny financial win of the day!

    I've just transferred my phone number from my previous pay monthly mobile contract at £18 a month to iD-mobile (run by Carphone Warehouse using the 3 network) and will now be paying £5 a month for more data (1.5GB rather than 1GB) I actually set up the new contract two months ago but kept forgetting to switch numbers over so have been paying for both contracts for two months.......

    So long as I can check my emails and listen to Spotify on my phone then I'm happy (I'm still an old school camera user for photos) so I'll stick with my Samsung it bites the dust! Now I just need to make sure I actually save that extra £13 a month rather than letting is disappear into grocery shopping or anywhere else
    • Skint yet Again
    • By Skint yet Again 16th May 17, 2:23 PM
    • 2,787 Posts
    • 17,949 Thanks
    Skint yet Again
    • #6
    • 16th May 17, 2:23 PM
    • #6
    • 16th May 17, 2:23 PM
    Well done on the phone savings, every little helps.


    bobobski would be the best to advise on house purchase costs as she has just put in an offer on a property but she doesn't always post during the week.
    Aims for 2017 -
    1. save as much as possible. spend as little as possible but still have a social life !
    2. no takeaways !
    3. shop once a week - no "top-up" shops - no unnecessary spending !!
    • savingwannabe
    • By savingwannabe 16th May 17, 9:03 PM
    • 12,718 Posts
    • 46,270 Thanks
    savingwannabe
    • #7
    • 16th May 17, 9:03 PM
    • #7
    • 16th May 17, 9:03 PM
    Hurrah for low cost phone usage.

    Well done.
    Savings Fund £500/£3000 16%
    Happiness Fund (Dec 1st 2017) £10/£600
    Reminder: I HAVE EVERYTHING I COULD WANT so SAVE!!!!
    • pinknsparkly
    • By pinknsparkly 17th May 17, 1:27 PM
    • 32 Posts
    • 156 Thanks
    pinknsparkly
    • #8
    • 17th May 17, 1:27 PM
    • #8
    • 17th May 17, 1:27 PM
    Thanks guys, it's silly for such a tiny win to be exciting but it really did put a smile on my face


    I've been thinking that in the future if I manage to cut any future costs (such as annual car insurance, gas/elec, internet bill etc) I'm going to try and save the difference between the two. So if this years car insurance is £25 less than last years, I'll pay this years and stick the £25 straight into savings. Or if I get a new internet provider that is £5 a month cheaper, that £5 a month gets stuffed into savings each payday. Obviously, I'm expecting most of them to go up not down, and this won't work until I have a job again and we have an income that exceeds our rent and bills!


    I also have some good news that I'm trying really hard not to get too excited about in case I jinx it! The money men at the two non-university organisations that I have been doing my PhD with have finally both agreed to fund a joint position for me. This is a brand new role, and so the details as to what exactly I will be doing, how my time will be split etc etc has to be finalised but the money men have said yes! we have been trying to create this role for well over a year now, and finally it might actually be about to happen
    • Skint yet Again
    • By Skint yet Again 17th May 17, 4:39 PM
    • 2,787 Posts
    • 17,949 Thanks
    Skint yet Again
    • #9
    • 17th May 17, 4:39 PM
    • #9
    • 17th May 17, 4:39 PM
    Don't assume bills will go up, if you follow Martins guides to renewing insurance - I got house insurance identical cover this year cheaper than last year. Great news on the job front !
    Aims for 2017 -
    1. save as much as possible. spend as little as possible but still have a social life !
    2. no takeaways !
    3. shop once a week - no "top-up" shops - no unnecessary spending !!
    • pinknsparkly
    • By pinknsparkly 30th May 17, 10:12 AM
    • 32 Posts
    • 156 Thanks
    pinknsparkly
    Thanks SkinnyYetAgain. I'm hoping that by planning for the worst, and hoping for the best (such as expecting bills to go up and being pleasantly surprised if they go down) things will get there just a little bit faster!

    We've just got home from a week away camping and visiting family. It turned out to be rather more expensive than we planned (by a couple of hundred pounds, eek!) so I'm going to have to tighten the purse strings in June. I'm intending to plan out meals for the entire month and buy all the non-perishables/freezable items that I can next weekend and then only buy necessities for the rest of the month!
    • Skint yet Again
    • By Skint yet Again 30th May 17, 3:19 PM
    • 2,787 Posts
    • 17,949 Thanks
    Skint yet Again
    Thanks SkinnyYetAgain.
    Originally posted by pinknsparkly

    Wish I was skinny


    Good luck with the meal planning and food shopping. I've lost the plot a bit this month but need to knuckle down again in June
    Aims for 2017 -
    1. save as much as possible. spend as little as possible but still have a social life !
    2. no takeaways !
    3. shop once a week - no "top-up" shops - no unnecessary spending !!
    • pinknsparkly
    • By pinknsparkly 30th May 17, 7:05 PM
    • 32 Posts
    • 156 Thanks
    pinknsparkly
    Wish I was skinny


    Good luck with the meal planning and food shopping. I've lost the plot a bit this month but need to knuckle down again in June
    Originally posted by Skint yet Again
    Sorry - blame my fat fingers!!!
    • pinknsparkly
    • By pinknsparkly 30th May 17, 7:07 PM
    • 32 Posts
    • 156 Thanks
    pinknsparkly
    I always have good intentions for meal planning but often fail to stick to it, and can end up wasting almost as much food as when I don't plan! Hence my intention to buy the fresh bits as I go..... I'd like to get into the habit of batch cooking, but it seems that once meals go into my freezer they never come back out again!!
    • savingwannabe
    • By savingwannabe 31st May 17, 10:13 AM
    • 12,718 Posts
    • 46,270 Thanks
    savingwannabe
    I'm the same. They just stay in freezer. lol. Hello.
    Savings Fund £500/£3000 16%
    Happiness Fund (Dec 1st 2017) £10/£600
    Reminder: I HAVE EVERYTHING I COULD WANT so SAVE!!!!
    • pinknsparkly
    • By pinknsparkly 31st May 17, 10:42 AM
    • 32 Posts
    • 156 Thanks
    pinknsparkly
    It's amazing what I often find hiding out at the back of the freezer. A while ago I made a real effort to eat up the contents of our freezer and all of the unlabelled food bags made for some interesting dinners I'm adamant they were labelled when they went in there!!!
    • pinknsparkly
    • By pinknsparkly 6th Jun 17, 4:27 PM
    • 32 Posts
    • 156 Thanks
    pinknsparkly
    Speaking of random surprises in the freezer, I thought we had two home made chicken pies in there for dinner last night. Turns out one of the them was mac 'n' cheese But since variety is the spice of life and all that, we just had a mish mash of freezer food for dinner instead!


    I had an unexpected travel claim pay out this month so have managed to increase our total savings by £650 It's a lovely change for me, as recently it's been more a question of how much have our savings reduced by this month.....


    Our car needs repairs which will be around £350 - £400 (owchy!) but I am ignoring that cost this month as I have another travel claim due for around the same amount.
    Last edited by pinknsparkly; 06-06-2017 at 4:38 PM.
    • savingwannabe
    • By savingwannabe 6th Jun 17, 11:18 PM
    • 12,718 Posts
    • 46,270 Thanks
    savingwannabe
    Well done on savings that is a big amount of money, yikes to car repairs but cars are essential to you so it's gotta be done. I have loads of unlabelled stuff in freezer and am kind of playing Russian roulette with it too sometimes. But a mac and cheese doesn't sound too bad
    Savings Fund £500/£3000 16%
    Happiness Fund (Dec 1st 2017) £10/£600
    Reminder: I HAVE EVERYTHING I COULD WANT so SAVE!!!!
    • pinknsparkly
    • By pinknsparkly 7th Jul 17, 3:16 PM
    • 32 Posts
    • 156 Thanks
    pinknsparkly
    Well the last month has run away with itself a bit...... Sorry for the silence!


    Savings-wise, a friend has moved in with us temporarily (probably for a few months) and has insisted on paying us rent. She wants to pay £500 a month which means we will have more money coming in than going out once again! It's such a relief, as much as we knew this would happen, and we planned for it, I still hate having to take money OUT of my savings each month! And hopefully, by the time she moves out I'll have finished up my PhD and be employed again


    Tomorrow we're having a big family meal (40 people) to celebrate our wedding (we eloped in January without telling anyone so this is the compromise!). Between the cost of the food, hotel room and taxis it should come out just a little under £1000. My parents gave us £2500 when we got married which I'd been saving for this so it's not really coming out of savings as it was already accounted for!


    We need to knock down a small brick wall outside our house as it is getting rather wobbly and I'm worried about people getting hurt (we have a lot of kids that play around outside the houses) so my next mission is to hunt down somewhere I can borrow or rent a sledgehammer from!
    Plan: buy a house in summer 2018
    Realistic savings goal: 10% house deposit. DONE
    Super ambitious savings goal: 15% house deposit. Currently on 11.9%





    • savingwannabe
    • By savingwannabe 7th Jul 17, 5:49 PM
    • 12,718 Posts
    • 46,270 Thanks
    savingwannabe
    Hello welcome back, I am v glad friend is able to move in and help to contribute to finances. That will certainly help and congratulations on the elopement and well done on planning wedding feast. Much less hassle than a wedding and very MSE of you.
    Savings Fund £500/£3000 16%
    Happiness Fund (Dec 1st 2017) £10/£600
    Reminder: I HAVE EVERYTHING I COULD WANT so SAVE!!!!
    • pinknsparkly
    • By pinknsparkly 10th Jul 17, 12:31 PM
    • 32 Posts
    • 156 Thanks
    pinknsparkly
    Thanks SavingsWannabe! Although the cost savings were part of the motivation for eloping, most of the motivation was family politics, the dread at the idea of planning an entire wedding and the fact that neither of us actually wanted a "wedding". Instead we treated ourselves to a lovely hotel for the night and a Michellin star restaurant (complete with a full gin menu!)
    Plan: buy a house in summer 2018
    Realistic savings goal: 10% house deposit. DONE
    Super ambitious savings goal: 15% house deposit. Currently on 11.9%





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