House Purchase - saved enough to have a life!

rrutter_2

I've just sat down and done some serious comparative maths - coz I've got a bit anal about all this now! (and ain't excel good???) :T

Following disaster split and unplanned sale of "family home" I was going to be homeless with not enough income on 2 February 2006 - D-day was 31 March 2006.

Now - today is 24May2006 Just bought my own house - completed on 31 March now doing the whole decoration change it to me bit (slowly and cheaply!). I had a fair chunk of deposit courtesy of selling the "family home" , and managed to get a good deal on a mortgage (slightly more than the standard 3.5 time salary, but had more deposit and got it for the lowest rate I could find for 2 years fixed so that gives me a bit of a breather). I initially calcualted I would not be able to afford phone, TV license, any take aways, any wine or any nice things for a year until I completed my training and the salary went up. So of I went, in search of the money saving tips. Thank you step-dad for the tip - i.e. look at this site!:p

Due to the information on this site I have managed to reduce the costs on my mortgage, household bills as well as getting the amount I needed to buy a house in the area I needed to be in for work (and get £250 cash back on the survey! so it cost me £70 total) £50 for transferring my current account and 0% interest on the overdraft I am now using (2 takeaways already from that nice little fund)

Plus I am using a cashback card (always hated debt so I don't do finance percentages) for my shopping and the like so far earning myself £45 by doing nothing other than handing over a different piece of plastic. YIPPEEEE :beer:

I have buildings and contents insurances for less than 1/3 of the original costs I was provided with, my car insurance has been reduced by £75 (even though I do stupidly high miles and some are for the business). I have insurance for accident, sickness, unemployment (having lived through that nightmare once), critical illness (level term) just in case as there is only me so no one else is going to help me.

All in all in practical terms this has meant that I have:
2 bed house (rent a room coming on now!) in a nice area (which I got at a lower price than the one across the road as I wasn't in a chain, had all the money in place and was buying from people without a chain above them - not that I am feeling smug at all),
mortgage I can afford each month
Solicitors bill was £250 - from time of offer being accepted to completion was 26 days (fab solicitor and there is nothing whatsoever to compare with talk when it comes to moving a sale along)
Apart from the other charges you have to pay I ended up paying £70 for the survey due to cashback offer - it took me 45 mins on the phone all sorted.
I got £31.26 in interest back from the solicitor just by asking from the funds that were held on my behalf in advance to get the completion on time.
Gas and electric at a cheaper rate than I was paying in the "family home" - saving me £15.35 per month
all the insurances (which I was not going to be able to afford) all cheaper than I though so the saving is incalculable
Car insurance that didn't make me cry too hard (not possible I thought) £75 reduction
a home phone (not in original budget)
Internet access (not in original budget)
TV license to watch TV legally (not in original budget)
Mobile reduced costs by £12 per month (replaced the fire bought a new one from Ebay - £45 so 4 month's will be taken from this)
Boiler / plumbing insurance ( DEFINITELY not in original budget)
cheaper contact lenses (saving me £8 per month - that;s the Chinese!)
Still able to pay into my pension every month (won't be a sad lonley destitute person - or at least will be able to say I tried not to be!)
Still able to pay into my godson's savings account on birthdays (£20 a year but that can break the bank at times and he will love his 18th b'day pressie!)
Best of all went to France stocked up on booze saved a fortune doing that but also reduced the costs by using the correct credit card!!!!! (and that lovely interest free OD on my sparkly new current account!)

I've had 2 take aways in my new house courtesy of the money saving I had achieved, gained more security that I ever thought was possible, and what is more the £250 bonus I unexceptedly got went on overpayment of the mortgage and (shock horror!) NEW STUFF NOT debt!!!!! My friends can eat other than pasta and potatoes when they come to visit me - when I get the spare room sorted I can rent it and get more dosh that way if I have to - which I will overpay on the mortgage - well and spend a bit on me i.e. paint for the bath room.

I haven't had to break into the 3 month emergency salary fund I stashed years ago, Phew, and who thought that cheap cheap cheap cola would be so good at getting rid of limescale!!! Money saving the old fashioned way is a godsend.

Oh and my weekly shopping bill is down to £22.50 on average including dog food (actually he eats human food its cheaper) and household cleaning products. And no I am not a matchstick

OK - had to just get that one of my chest. It's amazing what you can do with a little bit of knowledge and when your back's up against the wall! Anyone got more tips for me? I'm on a bit of an evangelical role now - I get everyone onto this site whenever I can although it scares some people!

Thanks everyone for all the tips, comments and support I am finally beginning to think the light at the end of the tunnel may be natural not a man-made booby trap!!!

jo_b_2

That is really impressive! Well done! :T

Am interested in how you got the cashback on the surveyors survey? Not heard of that before.

rrutter_2

Thank you - also forgot that I was also now the proud owner of cheap roadside recovery service!

Re cashback - Alliance and Leicester were offering it if you have a current account with them - or as in my case had applied for one (didn't even have it confirmed) - for putting in a mortgage application and getting it approved. A better current account and money (also managed to get the £50 refer a friend by filling it in retrospectively with a mate) was a welcome extra though!

Had to pay for the valuation before the cash back was given (5 days after mortgage went live) but just in time for the credit card bill with it on to be paid! Timing is everything!

System

Wow rrutter, thats absolutely brilliant. Well done you! :T

mandirinmonroe

well done .hope everything goes well for u.

CheekyLittleMonkey

rrutter wrote:

Thanks everyone for all the tips, comments and support I am finally beginning to think the light at the end of the tunnel may be natural not a man-made booby trap!!!

Well done mate, best of luck to you. You have done yourself proud and are truly an inspiration to others. God bless you. :T :T :T

gerretl

Hi rrutter.
GF and I are buying a house, and going from £300 p/m rent to £845 mortgage. I am daunted to say the least. When I first saw the repayment schedule, I could not sleep BUT, we have found the house we want to live the rest of our lives in, so it is worth it.
It is nice to hear from someone in a similar situation, who took the bull by the horns from day one.
Good luck to you

rrutter_2

Thanks everyone - just go for it anything is possible.

So update: Got a lodger - he moves in on 25th this month!!!

Estimates are in 3 months I can have the carpet replaced in the living room (done stairs already and stripped the floors upstairs when I found fab old floorboards) and I can go to France and but some booze in time for winter! Oh and stock up on wash powder, fabirc conditioner, meat, etc etc etc.

By November I should be able to set up a standing order to over-pay my mortgage by £100 per month which means by the end of the fixed rate term I will have paid of an additional £1000 capital - I think that may be over-ambitions calcualting now I have looked at in black and white, but it gives me a warm fuzzy feeling.

Also should be having a pay review in which case I have to do more maths to work out if I am better of with a comapny car or mine. Any tips anyone?

Dog and I still eating - house coming together and life generally looking up - still a big hill in front of me though!

System

How about a cashback credit card? Its only for the well disciplined though cause you will have to pay it off at the end of every month or you will get huge charges but if you play it right, you will get cashback at the end of each month just for using it and the money can stay in your bank account a month longer gaining interest.