Pay off mortgage and start having fun!

Alchemilla

Right with you in spirit. Xxx

newgirly

Hi ed, yes I did and also if it was possible to up the borrowing and clear the loan.(£35k) - online on the affordability calculator with no debts we can borrow £182k I think it was, but with the loan of £695 pm we could only borrow £59k on top. Very confusing. She suggested putting the factory forward as a repayment vehicle to clear it if we stretched the term longer past retirement age, that to help affordability,that also did not help.:(

I am so exhausted with it all, you could definatly say its been a lightbulb moment week!

I'm going to continue with the food budget I planned and also set up a direct debit to save for Xmas etc. If we need to spend it we will, I'm going to track all spending and see if I can download a spending app on my hudl.

Food budget is set at £320 pm initially, will keep records and see what we really spend :eek: ditto everything else really, hopefully I will get a better picture over the next few months.

Good news for today - gas and elec dd reduced by £20pm
Given a tub of haribos and a box of celebrations by a happy customer :T
Dh very reluctantly agreed to reduce his spends by £30
Visited gran and she ate some birthday cake :T
I will not let this beat me, its challenge on.

newgirly

Alchemilla wrote: »

Right with you in spirit. Xxx

I could do with some spirit al, vodka and coke please

Goldiegirl

I'm sorry that the outcome of the meeting wasn't positive.

But it's good that your husband has realised what the situation is, so it'll be easier to work together.

So it looks like it's plan B. Budget for the essentials, allow for an occasional treat, and throw everything else at the mortgage and the credit cards.

By doing that, you'll eventually be within the lenders affordability, and can then transfer to repayment over a longer term. Then you can ease up on the money you are paying to the mortgage, if you wanted to. You'd have room to make more choices.

It'll be tough for a while - but it won't be like that for ever. Every extra £1 you pay to the mortgage gets you closer to affordability in the eyes of the lender.

Good luck with all this - I have a lot of admiration for the way you have dealt with all the feedback you've had in the last few days.

greent

Ah, ng, sorry to hear that x


But I'd echo what the others are saying - throw everything you can at it and try again in a year - the affordability rules are so tight now and they can't relax them. But paying the debt down as much as poss will help


You can do this - we're all rooting for you!


xx

newgirly

There was no concrete reason given as to affordability.

What should I be prioritising ?

£32,200 k personal loan- business is paying the same amount into our current acct to cover it £695pm five years (4yrs7 mths left) 6.9%

0% cc £7972 total deals end Nov 2016 min payment £79


Mortgage £138,138 end date April 2022 £1839 required 2.59%

£2558 available for the above ( not incl the extra £695 from work for the loan)
And also this has to pay for food,petrol,clothes,and whatever crops up, plus hopefully a small emergency fund.

Financially loan first makes sense , but its unsecured and we are stuck having to clear the mortgage ,should we prioritise that at all costs,might the loan gone mean more chance of affordability in the future?

Help

AlexLK

First of all sorry to hear your news about the mortgage term.

newgirly wrote: »

Hi , a few quick answers:

Sky £15pm and we use it a lot, rest TV licence fee The actual cost is circa £27.50, then?
Car savings- tax ins mots etc. Seems reasonable.
Insurances, pay home yearly-£122 , car £222 and £148 I'd have a look around, my classics are under £100 each to insure.
Council tax - already changed to 12 monthly
Phones already switched a d got cash back
Business pays home phone and internet
Utilities - switched and checked on a regular basis
Pockt money : dd £0 ,twins £20pmeach - they get nothing extra ever!
Dh £100, me £30Why on earth does your husband have £100 per month when you have £30?
Oyster -£30 a guess as dd just started 2x internships in london, however if I top up she tries to pay me back!

Alex, I have lived off less in the past before, however the kids were younger and I was a sahm, I used to do surveys, bake bread, make my own clothes washing liquid, Many little things that help stretch our money.Now I'm older , working more , the kids eat more and I am more tired! If I have to do it , I'll just have to get on and do it.

Not trying to be rude but what does your husband do when not working? It seems you've every household responsibility from this thread.

Well I don't have everything I've spent in the last five years, i can try and plan the next seven years of course, but with three kids and a business its difficult to have anything set in stone.

Regarding the debt repayments, they were prioritised over the mortgage , however once I was told in no way can we extend the mortgage , I thought it best to get that paid first and let the debts continue to be paid just making minimums plus a bit extra a few times a month when I can. We have never had a problem switching 0% deals and as they are unsecured I thought the mortgage more important.

In my opinion, due to recent developments you need to clear the mortgage even if that means not honouring your debt repayments.

getmore4less

Keep the business loan separate it's not income
Get that debt into the business if you can so it does not sit on the personal finances, you may have a tax issue if the business is paying the interest and it is personal loan something for the accountants to sort out.

Get the budget set up with min payments on everything except the mortgage which now has a real deadline so the real min for that is a repayment schedule.

Do a full year in SOA format.
add categories for the things that are not on the standard form.

Leave nothing out and have a backup/emergency category.

Make it balance,

If anything left consider clearing the cards/using that for the emergency fund as they are a risk if the 0% run out and you can't renew.

With 0% cards the purchase ones are cheaper as they don't have fees.

Until you have everything on the list your top priority is the mortgage and essentials, then you can sort out your discretionary spends.

Go over the last 12 months(July-June) and work out where your money has gone, use these for estimates for this years spends on things adjust from there with the spend diary.

Don't bother setting up Xmas, holiday presents you have no idea how much you will have left for those, until you are feeding the family.

newgirly

Hi Alex, whilst I was a sahm , dh was working seven days a week for years. He did crazy hours at work 5am- 7pm or often much later. At weekends he either worked at his main job or else did building work\ decorating etc. on the side. I did start working weekends at one point ,but was earning £30 a day compared to his £100 plus , so I stopped. We had no help with three young kids very close in age and couldn't afford the fees for childcare. I did start up a nursery for a couple of years and also did cleaning when the kids were at school sometimes. He is by no means perfect,but he is a very hard worker

Dh has more than me as up into recently he has paid the diesel to get to work in his old big 3.0 litre van, he has agreed to reduce it and has no access to any other accounts whereas I do, it really is all he gets for working very hard , he also buys Xmas birthday presents etc.from him to me, and often pays when we go out, or he will take the kids to the cinema etc. If it needs reducing further he will do it, he's already offered to have £0 pm , which is not really feasible!

Gm4l then loan can't be transfered to the business, the account is well aware of them situation and has advised us before we took it out. The purchase 0% cards, can they be used for balance transfers at 0% with no fee as I've never seen that before , there is usually a best buy section on here and its best deals for me it her transfers or purchases?

The advice from you both seems to back up what I initially thought, prioritise the mortageg over the higher interest loan.

getmore4less

newgirly wrote: »

Mortgage £138,138 end date April 2022 £1839 required 2.59%

Tracker?

I think you need plan for a rate rise.

Once the budget is set up be ready for where the increased payment will come from, something will have to give.

The first 0.25% rise will cost another £16pm a 0.5% £31pm.

You could build in some slack by aiming for a bit more than £1839.