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    • mumof3.12kindebt
    • By mumof3.12kindebt 23rd Oct 17, 9:38 PM
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    mumof3.12kindebt
    Best put on my big girl pants! my saving for a deposit diary
    • #1
    • 23rd Oct 17, 9:38 PM
    Best put on my big girl pants! my saving for a deposit diary 23rd Oct 17 at 9:38 PM
    My diary to debt free and saving for a deposit by 35 .

    we aim to save 25k before even going to the bank for a dip

    current age 25 . current financal status . trying but not trying hard enough . in debt with hardly a pot to wee in ... it has to change ... from today

    we have consolidated our debts as of November so will just do an update regarding extra payments and a remaining balance every few months.

    for the most part this will be my diary on saving for a deposit the highs lows and raising 3 children all currently 8yo or younger while doing it .
    Last edited by mumof3.12kindebt; 02-12-2017 at 5:56 PM.
Page 2
    • mumof3.12kindebt
    • By mumof3.12kindebt 2nd Dec 17, 4:59 PM
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    mumof3.12kindebt
    been paid so transferred my overtime
    Here's our final balances for December

    Emergency fund £300
    House 5% interest account £500
    House extra account £600
    Xmas £250 (still have Xmas shopping to do)

    Considering after paying my car insurance in full last month which left us with a total of £250 in savings I think we are doing quiet well. It means we have added £1400 to our savings. We also have 85 at least in our money box.
    • mumof3.12kindebt
    • By mumof3.12kindebt 2nd Dec 17, 5:22 PM
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    mumof3.12kindebt
    January aims have £2000 in total saved towards deposit . see below (amounts to add in January)
    £200 emergency fund
    £650 house extra
    £250 house 5%
    £50 car savings account
    £50 Xmas / birthdays


    this isnt including my owed holiday pay which should be around £200 according to my manager . my owed holiday will also go straight to savings. im trying to keep the savings to rounded numbers
    Last edited by mumof3.12kindebt; 02-12-2017 at 5:44 PM.
    • mumof3.12kindebt
    • By mumof3.12kindebt 2nd Dec 17, 11:23 PM
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    mumof3.12kindebt
    Anyone on here gone down the part buy route.
    It would mean we could move next year.

    Any advice. I welcome honestly please good and bad experiences
    • getmore4less
    • By getmore4less 3rd Dec 17, 8:02 AM
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    getmore4less

    Any advice. I welcome honestly please good and bad experiences
    Originally posted by mumof3.12kindebt
    Why are you borrowing money at 6.8% and saving at a lower rate?

    You might benefit from a full DFW style SOA.
    • mumof3.12kindebt
    • By mumof3.12kindebt 3rd Dec 17, 3:41 PM
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    mumof3.12kindebt
    I am overpaying my loan. But ATM my loan is very affordable. On our income.
    We need to buy asap so ATM saving for a deposit is a priority.
    I understand we would be better off to pay the loan and then save up but we would then not be able to move for a minimum of 5 years if not longer. By continuing to pay my loan and save up we could buy and move alot sooner. We have outgrew our property and can afford a mortgage once we have the deposit. There are many that can't and surely us freeing up a property for people like that than waiting to be moved via the council and taking up another property that someone else can have is better than us staying here and someone else not being housed.
    My savings account is at 5% saving more than my loan amount each month. I can only put 250 a month in that one. My other savings accounts are at 2% .

    Basically yes we have debt. Yes I'm paying interest on the debt. But the maximum amount I owe including interest is the amount I posted.

    I'm paying 1100 interest in total. Even if I payed it off early I'm not going to save much maybe 500 pound if I'm lucky.
    • mumof3.12kindebt
    • By mumof3.12kindebt 3rd Dec 17, 6:13 PM
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    mumof3.12kindebt
    Before I had the loan at 6.8%

    I had a credit card at 9.9% and a car finance at 13.9% hence why I consolidated . I also consolidated so we only had one money payment with fixed interest so we could save quicker.

    By December next year I'll owe around 8k in debt but may have more than that in savings if that happens we will consider paying the loan off early and continuing to Save for a deposit. But ATM my debt doesn't worry me. But what does is every month longer we are here is one less month I am making a mortgage repayment it's also one more month we are effectively throwing money away at a much higher amount.

    It's also another month we are having to live in a property where we are tight for space.

    I do understand why people would say to pay my loan first but I really would like to move before the baby needs to be in a bed. It's not so much I'd like to we have to we don't have room in the 2 bedrooms we have for a single bed for her once she has grown out of her toddler bed.

    Hence me asking for people's experiences on part buying as we would potentially be able to move in the next 12-18 months and possibly clear my loan with the left over we would have in savings as we wouldn't need such a substantial deposit. I hope I make sense. In what I'm trying to explain
    • mumof3.12kindebt
    • By mumof3.12kindebt 3rd Dec 17, 6:27 PM
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    mumof3.12kindebt
    I'm going to sit down tonight and rework everything out. If we were to clear the loan and then buy. Possible using the part buy scheme and then the standard 20% deposit I'll give an update with the outcomes for advice
    • Silence101
    • By Silence101 3rd Dec 17, 6:30 PM
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    Silence101
    We part bought in September. The issue is that they do take in account debt repayments to determine if you could afford the mortgage and rent.
    If space is the issue, you might want to declutter (I found the magic of tidying up by Marie Kondo an eye opener) and look online at space saving ideas. Some are very cheap to implement but really help. But we only started making headway in making space once we realised we had to get rid of a lot of our stuff. There’s a few blogs about tiny living, which are quite extreme but are very clever in their use of space.
    You’ll get a much better deal from the bank if you pay off your debt first and save as much as you can. You would pay off all your debt in a year if you put the £1000/month you’re saving in debt repayment. (Our toddler still sleeps in our bed, so children don’t automatically need a bigger bed when they’re young.)
    09/17 Shared Ownership 50% share - Mortgage £77500 Original MFW 2052
    10/17 OP £108.01 /£100 11/17 £471.44/£100 12/17 £114/£100
    • getmore4less
    • By getmore4less 3rd Dec 17, 6:38 PM
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    getmore4less
    with that goal you should have taken the loan for longer with a lower payment and not overpaying, you save the deposit sooner.
    • mumof3.12kindebt
    • By mumof3.12kindebt 3rd Dec 17, 7:01 PM
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    mumof3.12kindebt
    My loan repayment is 196 a month. Which is actually less than my car finance alone is.

    Thankyou for the advice both. We have got rid of most of the stuff we no longer use or need. Put it this way our place is so small we don't even have room for a small table to eat dinner at which really makes me sad .

    The reason I took the loan at the amount I did is so we had 1k a month or thereabouts surplus to put into savings. Effectively giving us 12k in one year saved or 24k in 2 years.

    Part buy we would be looking at a .£3500 deposit. And 12 months direct debits will bring my loan down by £2300 or there abouts . That would leave around 9000 of the loan so effectively in 16 ish months I could pay the loan off and move using the part buy scheme

    Moving using a 20% deposit we would need 24k or thereabouts so it would take us around 36 months minimum with also clearing the loan. I suppose I was focused on the saving for a house because as much as I love the area. And as much as we are trying to make it work living here is really stressing me out. We have no wardrobes becUse we don't have the room. We all have minimal clothes and possessions now as I have sold and skipped 95% of it.

    I just want to be able to sit and have a meal together as a family and want my oldest son to have some space to be able to do his homework without the little ones distracting him or annoying him. I just wanted to move as soon as possible. To give us these 2 basic things. I'm sorry I guess at 25 Im nieve. I thought I was doing what was best given our situation ATM.
    I can get a mortgage both part buy with the rent top up or a 20% deposit for not much more than we pay now in rent and I do pay full rent and council tax here. I've already had a dip only 3 months ago which is why We won't be approaching the bank again until needed.
    • mumof3.12kindebt
    • By mumof3.12kindebt 3rd Dec 17, 7:02 PM
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    mumof3.12kindebt
    That my car finance was I meant sorry
    • mumof3.12kindebt
    • By mumof3.12kindebt 3rd Dec 17, 7:13 PM
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    mumof3.12kindebt
    The dip was with my car finance and credit card repayments so actually more in debt repayments going out than now
    • mumof3.12kindebt
    • By mumof3.12kindebt 3rd Dec 17, 7:28 PM
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    mumof3.12kindebt
    I guess I need to have a rethink and decide where I go from here. Finally having savings in my account I'm no longer stressing about money.
    There is a development being built in our village to be finished next year which is why I started to consider part buy. It would mean I wouldn't have to leave my village which has been home for ten years if we could afford one.

    I'm going to have a long hard think between now and next month and decide what to do. Regarding the loan and savings.
    • Silence101
    • By Silence101 4th Dec 17, 6:33 AM
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    Silence101
    I’d put your name down as interested in the development. My husband did that as soon as it was possible to do so online. Check who the developers are, and I think it was through their website that he put his name down.
    Having savings definitely gives you peace of mind, but now you’ve got an emergency fund it might be worth paying more to the loan. I think the best thing to do actually is to go to an Independent Financial Adviser, because they’ll be able to tell you if you could realistically get a mortgage at this moment in time, or how big a deposit you’d need. Then you will know exactly what to do for the best. But in the meantime put your name down and fill in the forms needed for the development.
    Unfortunately you paying full rent doesn’t mean you’d be offered a mortgage, even though it’s cheaper, because they test how high the repayments would go if the interest rates go up.

    Don’t forget that it’s expensive moving, we had to pay £3000/4000 for all the fees and the flooring (the new build had no flooring, so we spent about £1000 on carpet and flooring BUT that’s because my husband fitted it himself. We were told that it would cost £2500 to get someone in.) Basically you’re looking at needing another £5000 on top of the deposit, to comfortably afford to move. We also managed to borrow the work van and had friends to help. Not sure how much a removal company would charge, so you might need even more money on top of the deposit.
    09/17 Shared Ownership 50% share - Mortgage £77500 Original MFW 2052
    10/17 OP £108.01 /£100 11/17 £471.44/£100 12/17 £114/£100
    • getmore4less
    • By getmore4less 4th Dec 17, 11:09 AM
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    getmore4less
    I am not trying to say don't save,

    if the move/buy makes sense over renting on cost and lifestyle then a bit of extra interest may be worth it so save more overpay less to get there sooner.

    if the debt becomes an issue with how much mortgage you can raise you can review the size of deposit then easer to reduce the loan because you have too big a deposit than to try to get some back because it is too small.

    as above costs of moving especially into a new build can ad up but there are lifestyle choices there as well bigger rooms with an old second hand rug for a while may still be better than the cramped space you have now.

    shared/HTB can help get a getter rate on the mortgage as well.
    • mumof3.12kindebt
    • By mumof3.12kindebt 4th Dec 17, 5:37 PM
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    mumof3.12kindebt
    Thankyou for you advice both it is very much appreciated. I think im going to concentrate on saving until Dec next year and then review
    • mumof3.12kindebt
    • By mumof3.12kindebt 5th Dec 17, 6:00 PM
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    mumof3.12kindebt
    if the debt becomes an issue with how much mortgage you can raise you can review the size of deposit then easer to reduce the loan because you have too big a deposit than to try to get some back because it is too small.

    This was my thinking originally. The way I was looking at it is. If we can get a mortgage with x deposit and have 5000 left once moved etc. It's much easier for us to pay off the loan with the extra saved than to realise we don't have enough saved but have a smaller loan and have to lend money off family etc because we have cut ourself short
    • mumof3.12kindebt
    • By mumof3.12kindebt 5th Dec 17, 11:53 PM
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    mumof3.12kindebt
    I just wrote a massive post.
    Walked away came back . Clicked reply and I was too late so it's all been deleted.

    Anyway the upshot is I've gave in after weeks of pondering telling myself we don't need it etc and the money is better off in savings and I've invested in some more storage solutions.

    Once it's all sorted I expect the boys room to be perfect the entetance way to work better with no clutter and the kitchen to be almost sorted. Then it's just the lounge area our room and the bathroom to concentrate on.

    We have sorted one shed today not alot to skip as of already done that in the summer but we can get in there now everything has been put back properly
    • Tahlullah
    • By Tahlullah 6th Dec 17, 12:08 AM
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    Tahlullah
    Just read your diary. You clearly have a plan which is based on the needs of your family, and if you can get it to work, you should go for it.

    Hope the extra storage gives a bit more space until you can get enough saved for the deposit.
    Striving to be mortgage free.
    2018 MFW #135
    • mumof3.12kindebt
    • By mumof3.12kindebt 6th Dec 17, 12:21 AM
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    mumof3.12kindebt
    it's an investment because I've decided all the bits I've brought in the last few years since leaving my ex and being with my new partner I'll be taking with me when I move. And all the old stuff from my old not so good place life is being got rid of slowly. Although I have debt Which I'm not proud of I am proud of how far I've come and how little is left of what I had with him.

    Anyway enough about the past this diary is suppose to be about the present and our future.
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