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  • FIRST POST
    • tessiesmummy
    • By tessiesmummy 6th Feb 18, 9:52 PM
    • 71Posts
    • 60Thanks
    tessiesmummy
    Tessiesmummy pre mortgage debt clearout
    • #1
    • 6th Feb 18, 9:52 PM
    Tessiesmummy pre mortgage debt clearout 6th Feb 18 at 9:52 PM
    Hi!! I'm starting the diary in the hope of getting a mortgage sometime in the next 12-18 months!

    After reading many threads in here I've decided my best option is to clear my debts / old defaults prior to applying for a mortgage. I've done myself a little spreadsheet and am hoping to pay off £50+ weekly to clear it all by July!
    I have
    £231 h&m (defaulted 9/12/12) pay on 29/6/18
    £345 Orange (defaulted 22/12/12) pay on 25/4/18
    £1797 Very Ccj (defaulted 27/8/13) pay on 25/4/18 (paying £20 monthly now)
    £361 bursary overpayment. pay by 1/6/18 (paying £5 weekly now)
    £167 jcp overpayment pay by 11/5/18 (paying £15 fortnightly now)
    £100 water pay by 16/3/18
    total £2995

    brief income
    £268 tax credit and chb weekly
    £120 weekly wage (£360 from april)
    one off payment student loan 25/4/18 £3400

    weekly outgoings
    £100 rent
    £28 council tax
    £45 gas and electricity
    £60 shopping
    £11 water
    £45 car/ travel

    it's gonna be hard going as well as saving £100 a week from April but i am hoping that the settled rather than defaulted accounts will improve my chances of getting a mortgage.
Page 1
    • beanielou
    • By beanielou 7th Feb 18, 5:47 PM
    • 50,499 Posts
    • 192,936 Thanks
    beanielou
    • #2
    • 7th Feb 18, 5:47 PM
    • #2
    • 7th Feb 18, 5:47 PM
    Wishing you well on your journey
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **Credit card debt free 30/06/10~** **Weight loss 2 stone 2 lbs **

    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
    ***Fall down seven times,stand up eight*** ~~Japanese proverb.
    It starts with you, it starts from now. *** It is ok to be me.*** ***Keep plodding***
    • UK_Ozzy
    • By UK_Ozzy 7th Feb 18, 7:30 PM
    • 25 Posts
    • 25 Thanks
    UK_Ozzy
    • #3
    • 7th Feb 18, 7:30 PM
    • #3
    • 7th Feb 18, 7:30 PM
    Good luck on your debt free journey.
    • tessiesmummy
    • By tessiesmummy 10th Feb 18, 12:06 PM
    • 71 Posts
    • 60 Thanks
    tessiesmummy
    • #4
    • 10th Feb 18, 12:06 PM
    • #4
    • 10th Feb 18, 12:06 PM
    Thankyou!!

    I am still figuring out the best plan! I have decided to reprioritise the bills and pay the defaults and ccj first as the others that I am upto date with dont even show on my credit report. I'm hoping 3 settled will look better than 3 defaults.

    I've not made a great start as had a night out with Tessiesdaddy on Wednesday to a comedy club (first night out together in almost 10 years)! The tickets were free but the drinks were £11 a round so that turned into £100 wasted when you bring in taxis and food too. It was worth it though and I've still got my £50 to pay off a debt.

    I was looking at mortgage brokers and stuff and it is a lot of expense with little chance of me getting one so I am going to try in July with nationwide and if that doesn't happen then ill get a broker next year!

    I'm studying a Msc in public health and have passed my first 3 modules which im buzzing about. Also got interviewed for uni magazine which made me sound very professional and intelligent which was another little boost for my ego! The 3rd instalment of my student loan in April will be used to pay off any remaining bills hopefully if all goes to plan!

    I am trying my best to save. got £2700 upto now but 3 kids are so extremely expensive. They need stuff every single day!!! Going to uni also costs me £10-£20 a day too with parking coffees and lunch then £18 on wrap around for the kids!

    Hoping writing it all on a public forum will motivate me to do a little better and cut down on as much waste spending as possible!
    • tessiesmummy
    • By tessiesmummy 11th Feb 18, 10:08 AM
    • 71 Posts
    • 60 Thanks
    tessiesmummy
    • #5
    • 11th Feb 18, 10:08 AM
    • #5
    • 11th Feb 18, 10:08 AM
    well last night I decided to add a page to my spreadsheet so now I have normal bills, creditfixing Bills and a daily ins and outs page.

    my ins and outs for Friday and Saturday were not good but I'm keeping my fingers crossed that updating it daily will mean ill become more conscious of my spends.

    We spend a silly amount of money in the local shop and on takeaways. If we were to cut these out then as a family we would not only have more money but also be healthier so that's what I want to target this week.

    it is half term too so with 3 kids to entertain i expect to spend more this week than normal. However a few years ago i was on benefits and managed a whole summer holiday of lots of days out on minimal money so it can be done
    • tessiesmummy
    • By tessiesmummy 11th Feb 18, 10:31 AM
    • 71 Posts
    • 60 Thanks
    tessiesmummy
    • #6
    • 11th Feb 18, 10:31 AM
    • #6
    • 11th Feb 18, 10:31 AM
    Statement of Affairs and Personal Balance Sheet

    Household Information[/b]
    Number of adults in household........... 2
    Number of children in household......... 3
    Number of cars owned.................... 2

    Monthly Income Details

    Monthly income after tax................ 1350
    Partners monthly income after tax....... 0
    Benefits................................ 986.48
    Other income............................ 0
    Total monthly income.................... 2336.48


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 404
    Management charge (leasehold property).. 0
    Council tax............................. 112
    Electricity............................. 80
    Gas..................................... 70
    Oil..................................... 0
    Water rates............................. 44
    Telephone (land line)................... 0
    Mobile phone............................ 15
    TV Licence.............................. 0
    Satellite/Cable TV...................... 0
    Internet Services....................... 34
    Groceries etc. ......................... 250
    Clothing................................ 0
    Petrol/diesel........................... 80
    Road tax................................ 28
    Car Insurance........................... 105
    Car maintenance (including MOT)......... 30
    Car parking............................. 20
    Other travel............................ 0
    Childcare/nursery....................... 24
    Other child related expenses............ 80
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 50
    Haircuts................................ 0
    Entertainment........................... 100
    Holiday................................. 0
    Emergency fund.......................... 0
    Total monthly expenses.................. 1526



    Assets

    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 3000
    Other assets............................ 0
    Total Assets............................ 3000


    No Secured nor Hire Purchase Debts


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Total unsecured debts..........0.........0.........-



    Monthly Budget Summary

    Total monthly income.................... 2,336.48
    Expenses (including HP & secured debts). 1,526
    Available for debt repayments........... 810.48
    Monthly UNsecured debt repayments....... 0
    Amount left after debt repayments....... 810.48


    Personal Balance Sheet Summary
    Total assets (things you own)........... 3,000
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -0
    Net Assets.............................. 3,000


    Created using the SOA calculator at www.stoozing.com.
    Reproduced on Moneysavingexpert with permission, using other browser.
    [/font]
    forums.moneysavingexpert.com/showthread.php?t=5789716 Debt Free Wannabe
    • MeenaM
    • By MeenaM 11th Feb 18, 10:39 AM
    • 176 Posts
    • 370 Thanks
    MeenaM
    • #7
    • 11th Feb 18, 10:39 AM
    • #7
    • 11th Feb 18, 10:39 AM
    HI and good luck

    your best bet is to clear your debts and have in place savings that equal at least 3-6 months of your expenses otherwise you will get a house and end up in more debt , you want to be able to enjoy your home and have enough money to afford to maintain it etc , so that is the best way of going about it, i would suggest having a budget that you both sit down and agree on at the beginning of the month when you get paid and stick to it , the more you do that the quicker you will get out of debt
    Sealed Pot 11. #199Next£1170Barclays Credit Card £4891.20/4458.95- 0% ends April 2019 virgin 0% ends july 2020 £4138 4013.20AA Credit Card £860 0- 0% ends Dec 2017 Sainsburys Credit Card £521.27-0 0% ends Feb 2018 STARTED Nov 17AIM TO BE DEBT FREE JULY 2019Emergency Fund £360/£1000
    • tessiesmummy
    • By tessiesmummy 11th Feb 18, 10:51 AM
    • 71 Posts
    • 60 Thanks
    tessiesmummy
    • #8
    • 11th Feb 18, 10:51 AM
    • #8
    • 11th Feb 18, 10:51 AM
    Thankyou for the reply MeenaM. Yes I completely agree with you. Fortunately our outgoings arent massive. We are just really good at disposing of the disposable income or should I say Tessiesdaddy and the kids are!! They spend money every minute of the day if its there. I am going to be cutting back as of today though and hopefully as well as clearing the debts increasing the savings.

    Does this mean when I eventually do apply for a mortgage I should be keeping back a few grand as savings rather than deposit? I'm hoping to buy the house I'm in now. It's a housing association Right to Acquire purchase so luckily I know the ins and outs of it and fingers crossed all the basics (gch, boiler and electrics) are all well maintained. Also Dp is a handyman so we are able to do most jobs ourselves.
    forums.moneysavingexpert.com/showthread.php?t=5789716 Debt Free Wannabe
    • MeenaM
    • By MeenaM 11th Feb 18, 4:17 PM
    • 176 Posts
    • 370 Thanks
    MeenaM
    • #9
    • 11th Feb 18, 4:17 PM
    • #9
    • 11th Feb 18, 4:17 PM
    Thankyou for the reply MeenaM. Yes I completely agree with you. Fortunately our outgoings arent massive. We are just really good at disposing of the disposable income or should I say Tessiesdaddy and the kids are!! They spend money every minute of the day if its there. I am going to be cutting back as of today though and hopefully as well as clearing the debts increasing the savings.

    Does this mean when I eventually do apply for a mortgage I should be keeping back a few grand as savings rather than deposit? I'm hoping to buy the house I'm in now. It's a housing association Right to Acquire purchase so luckily I know the ins and outs of it and fingers crossed all the basics (gch, boiler and electrics) are all well maintained. Also Dp is a handyman so we are able to do most jobs ourselves.
    Originally posted by tessiesmummy
    I know that feeling about the husband/partner and the kids spending the money like its going out of fashion, its not easy that's for sure , it helps if you are all on board and focused on the same dream , ie debt free and the house etc

    yes i would say have some additional in savings in addition to the deposit , that would be the best , its good to hear you should be able to do all the jobs yourselves as well that will def be a bonus
    Sealed Pot 11. #199Next£1170Barclays Credit Card £4891.20/4458.95- 0% ends April 2019 virgin 0% ends july 2020 £4138 4013.20AA Credit Card £860 0- 0% ends Dec 2017 Sainsburys Credit Card £521.27-0 0% ends Feb 2018 STARTED Nov 17AIM TO BE DEBT FREE JULY 2019Emergency Fund £360/£1000
    • tessiesmummy
    • By tessiesmummy 12th Feb 18, 10:58 AM
    • 71 Posts
    • 60 Thanks
    tessiesmummy
    They are on board as far as they want to buy the house to gain an extra bedroom (loft conversion) they don't seem like they want to sacrifice anything to get it though.

    Had a good day yesterday and only spent £11 in aldi which was a lot less than we usually spend. Didn't got the shop or to a takeaway!!

    Today is the first proper day of half term. Kids r killing each other and my 6 year old dd is in a super bad mood!! I'm thinking of taking them to the beach park for an hour and the dog.

    I'm in uni tomorrow and wednesday so will then need to find stuff to do Thursday and Friday. we have done the museums and art galleries 3/4 times a year for 9 years. we know them all inside out. It's getting harder to find stuff to do especially for m eldest she's 9.
    forums.moneysavingexpert.com/showthread.php?t=5789716 Debt Free Wannabe
    • tessiesmummy
    • By tessiesmummy 13th Feb 18, 8:37 PM
    • 71 Posts
    • 60 Thanks
    tessiesmummy
    dear diary...

    well today was tax credits day and spent £79.94 today although £53 of that was direct debits so not as bad as it looks!! I took my spare 2 wallpaper rolls back to b&m and exchanged them for tinned food so that was £13 saved.

    my in and out spreadsheet is doing well. I'm gonna run it friday to thursday because fridays is when I spend any leftovers paying off debts and it's wages day.

    really struggling with the kids behaviour this week. I neat had a breakdown in the shop because they were carrying on and my throulats hurting from telling them off all day. fingers crossed it passes.

    as for days out.. yesterday we went to the beach park with the dog. that was actually really refreshing to get some winter sun and I just spent £2.60 on a coffee to keep warm. today dd2 had a swimming lesson so dd1 went in the pool too so that was a little hour out for free!!!

    I'm in uni 9-11 tomoz and dp is under strict orders to fix my bike so I can go out with the kids in the afternoon!!! if he does as he's told then thats 3 days out done and dusted for free!!!
    forums.moneysavingexpert.com/showthread.php?t=5789716 Debt Free Wannabe
    • tessiesmummy
    • By tessiesmummy 15th Feb 18, 7:23 PM
    • 71 Posts
    • 60 Thanks
    tessiesmummy
    hello again!! well yesterday and today weren't too bad with spending. today was just £6 in aldi again and £5 on a bottle of power steering fluid as i thought the car was about to die but thankfully that was all it needed!!! finished my weekly spreadsheet and had £636 in and £424 out so got £200 to pay off some debt with.

    I am really stuck on the house buying front. I am still waiting for the offer price to come through but the later the better really as i can't do full time hours for the mortgage until the new tax year starts. If it's cheap (like really dirt cheap) less than £60,000 then ill go for it. but if its more then I am thinking of getting a fulltime contract in September and working and saving for a year and moving elsewhere.

    reading all these forums has made me feel even worse about my credit file and where I can go from here. ideally I'd like to buy the house this summer but in reality i don't think it's gonna happen.

    I've got my money in my current account at the minute which isn't the most savvy thing. I'm gonna go to nationwide on Monday and open a htb isa and transfer £1200 into that then put £50 a week into it so that way wherever I do buy i can get the bonus.

    I feel like I am running up the down escalator in life. my debts are small but still stopping me progressing. I work on the bank for family convenience but if I want a mortgage I need to get a contract. it jist feels like no matter how hard i try im stuck.
    forums.moneysavingexpert.com/showthread.php?t=5789716 Debt Free Wannabe
    • tessiesmummy
    • By tessiesmummy 16th Feb 18, 11:59 AM
    • 71 Posts
    • 60 Thanks
    tessiesmummy
    well this morning was the start of week 2 spreadsheet!!! I've been looking back at my spreadsheet from 2015 when money was tighter but bills were a lot less for some reason.

    week 1 totals were:
    £70.64 on groceries
    £228.81 rent and bills
    £33.56 fuel and car costs
    £95.48 on kids/ entertainment (most was friday and saturday before i was really counting)
    £8.90 on coffees. (I've done this seperate from entertainment to shame myself into cutting down. this is good though. I easily spend £20+ weekly usually)

    my spends havent been too bad for a family of 5 over half term they do eat a lot!!! The entertainment/ kids budget includes anything at all non essential- the amount wasnt too bad but the things it was spent on could have been distributed better.
    forums.moneysavingexpert.com/showthread.php?t=5789716 Debt Free Wannabe
    • clyndu
    • By clyndu 16th Feb 18, 1:54 PM
    • 467 Posts
    • 3,151 Thanks
    clyndu
    Hi Tessiesmummy, with regard to the coffees, lots of the students where I work
    bring a flask from home. You could perhaps treat yourself once every couple of weeks,to a fancy coffee
    • enthusiasticsaver
    • By enthusiasticsaver 16th Feb 18, 2:01 PM
    • 5,652 Posts
    • 11,187 Thanks
    enthusiasticsaver
    You will find it extremely difficult to get a mortgage with defaults within the last 6 years so that should be the first task.

    You will also need to save a deposit, money for fees and stamp duty and an emergency fund.

    You have an £800 surplus so it is doable but you will need to be much more disciplined with your money. Saving for things rather than living from paycheck to paycheck is the way to go. Keep money for fuel, food and entertainment and budget weekly for it.

    I wish you luck but realistically I don't think this year will be doable as you will need usually at least a 10% deposit to get a decent mortgage rate.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • tessiesmummy
    • By tessiesmummy 16th Feb 18, 2:04 PM
    • 71 Posts
    • 60 Thanks
    tessiesmummy
    I know Clyndu. My uni does have a hot water tap too to make our own coffee its just that I'm so disorganised but I am determined to improve!!!

    I don't think I could cut them out pre early shift in work though otherwise id be the world's grumpiest nurse lol!

    I'm also chipping away at the bills.. got £100 paid off my water underpayment so just another £50 which will hopefully reduce the payments next year then. Next i need to pay off dd1 communion dress I owe £194 on that it's a lot of money for an hour but she will look like a princess and I'll try and sell it on straight after whilst its still in season. I have 4 current bills totalling £900 so I am getting them sorted before I mess around with the old defaulted ones.
    forums.moneysavingexpert.com/showthread.php?t=5789716 Debt Free Wannabe
    • tessiesmummy
    • By tessiesmummy 16th Feb 18, 2:16 PM
    • 71 Posts
    • 60 Thanks
    tessiesmummy
    Thanks for the input enthusiasticsaver!! I'm not really living paycheck to paycheck. I have £3000 saved and get paid twice weekly so money just flows along rather than being a big lump sum then budget as such.

    I also get £9000 discount on the house price which some mortgages take as the deposit but I know what youre saying.

    Tbh I'm just waiting on the offer letter before I decide if I even want the house. I do love it and have spent a fortune doing it up but its in an awful street and I would be stuck with it for life as ots not resellable so I am not really prepared to pay more that £60000 for it. So with the £9000 + £6000 cash id be looking at 75% Ltd mortgage

    plan b if I'm not going for this is to get contracted full time hours; save for another year by which time the defaults will be gone and get a house round the corner which are more desirable and resellable and cost about £110000-£140000 So therefore id need about £15,000 cash plus fees and broker.
    forums.moneysavingexpert.com/showthread.php?t=5789716 Debt Free Wannabe
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