Mortgage Wannabe! A chronicle of FairyLights efforts towards home ownership!

edited 27 December 2011 at 7:32PM in Mortgage-free wannabe
11 replies 1.1K views
FairyLightFairyLight Forumite
48 Posts
edited 27 December 2011 at 7:32PM in Mortgage-free wannabe
Hello everyone :santa2:

My name is FairyLight and I've been lurking here with interest for too long - inspired by your efforts and the rapidly approaching new year, I've plucked up the courage to register and start my own diary thread!

In contrast to the majority of posters on the MFW board, OH and I would LOVE a mortgage :rotfl: - however need to save up a deposit first of all. I feel like this would be a good way to focus our efforts.

We both have our moments but are pretty good with money, but have decided 2012 is the year we take control of our finances in more ways than one - and try and squeeze a house deposit out of our incomings over the next 2 years. I'm 27 and OH is 29. The dream is to be mortgage free (or at least a good way towards being mortgage free!) by 40 (easier said than done methinks!)

The initial aim is to save up £20,000 house deposit by Christmas 2014 :eek:

Other smaller targets include:
- 3 months salary in a separate rainy day pot (£6000)
- saving in advance for big expected annual expenditure (car insurance, tax and MOT for both of us)
- taking part in the monthly grocery challenge on the OS board, meal planning, eating from the storecupboard where possible
- saving for christmas in a sealed pot and also trying to remain as financially neutral as possible for presents throughout the year (think boots points, gift vouchers, homemade gifts etc)

I hope you enjoy the diary, I shall be continuing to read all of yours with interest! I shall reserve post 2 to tell you a little more about ourselves and our challenges.

FairyLight
MW House Deposit Pot (£1000/£20000)
Rainy day savings (£3000/£6000)
GC Feb 2012 (£60.02/£150)
Gifts money spent / actual value 2012 (£56.98 / £160.98)
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Replies

  • edited 27 December 2011 at 7:27PM
    FairyLightFairyLight Forumite
    48 Posts
    edited 27 December 2011 at 7:27PM
    A little about us -

    I'm female, 27, and work for the NHS. OH is male, 29 (30 in May!) and currently isn't working (long story for another time!)

    We have no children or pets (although we'd quite like both!) and run two cars, which are of the old but reliable variety and we bought outright.

    We now live in the same town as both OH and my familys, which is nice, as we lived away for 6 years.
    MW House Deposit Pot (£1000/£20000)
    Rainy day savings (£3000/£6000)
    GC Feb 2012 (£60.02/£150)
    Gifts money spent / actual value 2012 (£56.98 / £160.98)
  • Lois_ELois_E Forumite
    2.2K Posts
    Ninth Anniversary Combo Breaker
    Forumite
    Hi FairyLight and welcome to MFW (or MW in your case).

    You're in good company here. Somebody else has just started a mortgage-wannabe diary. You might like to subscribe to hers. Anyway, you'll find everyone here very friendly and encouraging, especially if you join some of the challenges.

    I'm no good at advising people on their SOAs, but some people here are great at it, so if you're brave enough, try posting one and see if somebody turns up and points out some places where you can cut back on expenditure to free up some money for that deposit.

    Oh, and put some stats in your sig if you feel up to it. Something like
    Rainy day pot saved £0/£6000
    House deposit saved £5/£20,000
    Jan Grocery challenge £0/£100
    or whatever takes your fancy. Then when you post on other people's threads, they will see you sig, and then they might have a look on your diary and post something encouraging! (It's fun updating the sig every time you make progress too! :))

    Good luck, and don't let it turn into a slog. Enjoy the journey as well as looking forward to the destination.
    Starting again 13/4/19
    Home loan 1: £21,102.50 Home loan 2: £7,698.99
    Total owed: £28,801.49
  • Tilly_MFW_in_6_YRSTilly_MFW_in_6_YRS Forumite
    7.8K Posts
    Mortgage-free Glee!
    Forumite
    Hi FairyLight, good luck on your journey and I think it is an excellent way of approaching your future. I have separate pots in my bank account and switch my money on pay day straight into them. Covers food, car, holidays etc - details on my diary if you want to check. It has worked for me and I have the cash up front now for bills, gifts etc which is great.

    I look forward to following your progress.

    Best wishes Tilly
    2004 £387k 29 years - MF March 2033:eek:
    2011 £309k 10 years - MF March 2021.
    Achieved Goal: 28/08/15 :j
  • DeclutteringDecluttering Forumite
    691 Posts
    Part of the Furniture 500 Posts Combo Breaker
    Forumite
    Happy new diary :) I'm going too subscribe and read with interest how you go about this, I'd quite like to start saving towards a deposit too. All the best.
    Thank you competition posters!
  • I've subscribed too as I'm also a MW.
    Would love to be a MFW. Well I'd love to be MF but one step at a time, must get a mortgage first.
    DFD: 23/12/2010
  • Goodluck on your journey. There is a house deposit savers thread on the House Buying section. It's quite inspirational to read it and I'm sure it will spur you on through the tough times.
  • Hi everyone and thanks for posting!

    Lois_E - I did a lovely multicoloured signature there like you said but for some reason it hasn't shown up (perhaps because I'm a newbie?) Thanks for the advice on the other diary, I'll have a little look there now! With regards to a SOA, I'll certainly give it a go I think - would be good to get everyones advice on where we could cut back (undoubtedly in quite a few places lol..!)

    Tilly - the pots sound like a good plan - we have set up a few like this attached to our main current account as a money management tool so I'm hoping those will help us get ahead of the bills - well done to you for all your progress and I will be following your diary with interest!

    Decluttering and iwantahome - why don't you join in! Thanks for reading :beer:

    So, todays MW activities -

    - we've eaten yet more leftover turkey (in the form of turkey fajitas, yum!) and portioned the leftover and turkey and ham up for the freezer instead of what we would normally have done - i.e. let it go off and throw it out (the shame!). 7 good meal for 2 portions in there so that should keep us going for a while.

    - sorted through some of the christmas stuff and moved some of it to the gift cupboard for regifting (bottle of spiced rum, 2x fancy boxes of chocolates with long dates on).

    - bought a 2012 calendar and have put all the birthdays, weddings and other major dates throughout the year in so we can plan better and be more organised with gift buying etc

    - 2x lovely gifts bought in the Jan sales (lots of birthdays coming up!), £8 spent, worth £17 so quite pleased

    - heating off, snuggie blanket out. We were getting a 'cosy glow' in our sitting room from a quaint little electric fireplace (with the heating part turned off) but in favour of saving electric we have lit some lovely candles instead

    - slow cooker out of cupboard and ready for action.

    Things to do over the next few days -

    - freezer and storecupboard inventory, meal plan and some grocery shopping for fresh fruit and veg

    - get an expanding file and organise our paperwork mountain

    - get to the card shop and stock up on 10 for £1 cards, lots of birthdays etc in this family coming up soon. Also, get in next years xmas cards and some (preferably xmas pattern free!) gift wrap when they get slashed right down in the sales

    - I knit, planning to knit throughout the year for xmas gifts, so need to get myself some new wool to make a start

    Right, I'm off to do a SOA... wish me luck!

    FairyLight
    MW House Deposit Pot (£1000/£20000)
    Rainy day savings (£3000/£6000)
    GC Feb 2012 (£60.02/£150)
    Gifts money spent / actual value 2012 (£56.98 / £160.98)
  • Anybody used the SOA calculator linked to on the DFW board?

    I find it doesn't have nearly enough categories to cover all the frittering we do...

    So heres my own modified version:

    Number of adults in household - 2
    Number of cars owned - 2
    Number of children - 0

    Income after tax - £2435
    Partners income after tax - £270

    Assets -
    Rainy day fund - £3000 (aim is £6000)
    Cars - £4200

    Monthly expenses:
    Rent - £480 (Council tax and water rates included here)
    Contents insurance - £6.75
    Electricity - £40 (we have a meter and top it up by this much per month which seems to last)
    Gas - £50 (haven't had a bill through yet, setting this much aside as a rough guess, I'm hoping its enough)
    Home phone & internet - £28 (including the line rental and OHs mega broadband, we don't really use the phone much)
    Mobile phone bills - £16.50 for me, £32 for OH.
    Trade union subscription - £17.50
    OH sports team subs - £10
    OH sports equipment - £20
    My car insurance - £86 (OH pays his annually)
    Petrol - £40 budgetted for me, £120 for OH, we rarely use all of this
    Food - £150 (trying to stick to this in grocery challenge style!)
    Clothes - £40
    Haircuts - £5

    Annual expenses:
    OH car insurance - £1400 (OH and I have only been driving 2 and 1 years each respectively, our car insurance is on the high side, mine is up in Feb and OHs in Oct, OH has it all worked out and plans to add me to his policy, we'll pay up front which should hopefully remove the £86 above...! Currently paying £140 a month into a pot to cover this annual expense)
    Car tax - mine £130, OHs £180 (again, money going into car pot monthly for this
    Car MOT - £30 x2 (car pot!)
    Mandatory work fees - £420 (July)

    When OH finds work it'll definitely make things easier here. Although cars is clearly a target area we do definitely need both - insurance and petrol are fair game to be cut back though! All the little things come out of the money left over after all of this lot (e.g. presents, meals out etc). Hard to say exactly what we spend as it varies month to month (but is always as cheap ad I can make it!) This is what we're aiming to cut back as far as possible!

    Any other suggestions?
    MW House Deposit Pot (£1000/£20000)
    Rainy day savings (£3000/£6000)
    GC Feb 2012 (£60.02/£150)
    Gifts money spent / actual value 2012 (£56.98 / £160.98)
  • Hi everyone!

    Well, our first gas bill in the new flat arrived today... £144, which at first glance I was quite pleased with as I'd budgeted £50 a month - then I took a second look and realised this was only for 7 weeks of gas...!!!! :eek: Apart from cooking and hot water it has very firmly been turned off for now in favour of the small electric heater in small bursts and our lovely collection of wooly jumpers and blankets lol.

    Loving my new 2012 calendar and a bit of organisation - I have planned ahead and bought any upcoming gifts for the month ahead (kids bday, DVDs x3 bought with HMV voucher received for xmas and nothing we wanted, OHs mums bday at the end of the month lovely big hot chocolate set with 2 cups and a milk frother - down to £2.99 in the sales:money:.)

    Some of you may hate this but we also got a few little bits in for next xmas - 2x packs of lovely cards 50p, 80 nice gift labels 50p, and 4 packs of 3 hallmark bottle giftbags, in plain colours therefore will do all year round, reduced to 50p a pack. :rotfl: I'm disgraced in that just before xmas I had to rush out to get a last minute bottlebag from the local shop at £2.50 (!!) that would have covered most of that lot lol. No more!

    Now, in money terms, OH and I have worked out how we're going to do this - we have 3 bank account pots set up (one for bills / groceries and petrol, one for car fund and one for monthly cash - the savings are separate). Whatever is left in the monthly cash pot at the end of the month gets divided between rainy day fund and house deposit. I'm hoping this will amount to at least £100 each per month at the moment (and once OH finds work, much more than this!)

    Hope you are all well. Back to work tomorrow for me and working 12 hour shifts all weekend, so happy new year and here's to a prosperous 2012 if I'm not back before then!

    Fairylight xx
    MW House Deposit Pot (£1000/£20000)
    Rainy day savings (£3000/£6000)
    GC Feb 2012 (£60.02/£150)
    Gifts money spent / actual value 2012 (£56.98 / £160.98)
  • Sepa74Sepa74 Forumite
    962 Posts
    Forumite
    Hi Fairylight, you and your OH seem to be making a great start :)

    A couple of comments on your SOA - is your OH out of contract with his mobile? If so, he should shop around as there are lots of cheap phone deals out there.

    Also £40 is quite a bit to spend on clothes - have you tried charity shopping? The other thing that can be fun is to go through your wardrobe and rediscover all your old clothes and / or put some away so you can go wardrobe shopping in a year or so.

    The other thing you might want to do is start a spending diary... it's really helpful in keeping track of what is being spent. Mine was very insightful! Who would have thought two cats could cost £800 in just 6 months! They're lucky I love them!!
    Borrowed £150,000 in an offset tracker mortgage in May 2007 - MFD May 2041 (67)

    Jan 2012 - £125,620.02 / 2,913.87 / Nov 2032 (58) :beer:
    Apr 2012 - £122,901.88 / 3,170.91 / Jul 2032 (58)
    Jul 2012 - £122, 589.02 / 3,507.99 / Sept 2032 (58)
    Oct 2012 - £120,476.31 / 3,889.42 / July 2032 (58)
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