I'm fed up with my budget - advice needed

want2bmortgage3

thank you bunnydrumming and tommy there is no secret, i've only been doing it the last 2 weeks so it might get harder as i run out of things i already had in the cupboards. as i'm letting the place out soon and money wont be so tight i'm not sure if i will worry so much about a food budget. it may be that i ask my mum to buy certain things in her weekly shop and i contribute some cash to that. dont know yet.

want2bmortgage3

well been thinking about this and definitely think its right to let out the property, means my mortgage (even in repayment mode) is paid by the tenant. also gives me a bitmore freedom as i'm not tied to this property, i can now go where i want.

this is where i'm considering options. parents would be cheapest, but is well out of town and still can feel like a kid around them, sometimes can be irritating. other options i guess are find a room in a shared house or find a friend and rent a flat. this would mean i could be near town, better for going out and shops, gettin on train to london etc.

want2bmortgage3

i also thought about renting a 2 bed flat in town centre location (demand for lodgers) and getting a lodger in there. if i'm right your allowed to sub-let under the rent-a-room scheme??

Fire_Fox

You are not allowed to sublet unless your landlord gives you express permission. The rent-a-room scheme means that you wouldn't pay income tax on the first several thousand pounds of rent. You will however have to pay income tax on the rental from your current home.

want2bmortgage3

On second thought that was a bad idea.... so seems like my options are (now the flat is being let out): (cheapest first)

- back to parents and overpay to the max
- back to parents until i find a friend who wants to share
- look for a room near the town centre (become a lodger myself)
- look for a 'buddy up' and flat share with some new people
- rent a studio flat (most expensive option but could still overpay)

sarahs999

You might also want to post on debt free wannabe. They have good ideas about tweaking budgets to suit. Lodger always good for quick cash though.

want2bmortgage3

sarah
i dont have debts, just a mortgage, and already decided against a lodger and for letting the whole flat.
this means i have one of the above options to decide on...
thanks

zoomy

I would go back home for a month or two, it's not easy (I've been back home for 5 years now and am just about to escape again!) but if you're sensible you will be able to overpay your mortgage and get it down to a level where you could afford to move back in...

The other option if you're on a fixed rate deal might be to save enough to buy yourself out of the fixed rate and re-mortgage to take advantage of the low interest rates...

Then if you can't stick being back home start looking for a buddy up (if you weren't happy to have a lodger with you in your house then you would probably feel the same about being one..)

want2bmortgage3

Thanks zoomy,
Mortgage has 2 years left @ 4.89. Do you think I could get a much better rate?
Deciding against a lodger was more to do with the location / layout of the property. The lounge isnt a seperate room, this means you walk through it to get to the kitchen. So if you were watchin tv in the lounge and the other person went from bedroom to kitchen they would walk past. Also the location is well out of town and there wasnt much response to my lodger ad.
So a buddy up is a possibility its just having the confidence to meet up with strangers I guess.

zoomy

I'm just going onto a 4.69% fix for 5 years so I guess youre not on a bad rate (although I was offered a tracker at 2.39%!)

If I was you I would be getting as much paid off as I could - if you're struggling now what will you do if (and when) interest rates go up?

Having said that you might be like me and thinking you'll be earning an awful lot more by then:rotfl: