Here we go!

hildosaver

Hi all, long term lurker on this forum - just finished my first fixed term on my mortgage and at last my interest rate has gone down to SVR which has meant a £100 per month drop in my current mortgage payment. Sadly my house is around £20k in neg equity now so I've decided to focus on getting the mortgage down as quickly as I can in order to further bring down my monthly payments and to enable myself and my new wife to possibly move to a bigger house in next few years if we need to due to new family...!

Would be great to here from you all.



Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 1900
Partners monthly income after tax....... 1400
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3300

Monthly Expense Details
Mortgage................................ 645
Secured/HP loan repayments.............. 256 (car)
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 33
Gas..................................... 0
Oil..................................... 35
Water rates............................. 0
Telephone (land line)................... 10
Mobile phone............................ 35
TV Licence.............................. 10
Satellite/Cable TV...................... 20
Internet Services....................... 15
Groceries etc. ......................... 250
Clothing................................ 20
Petrol/diesel........................... 100
Road tax................................ 0
Car Insurance........................... 45
Car maintenance (including MOT)......... 15
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 5
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 15
Life assurance ......................... 10
Other insurance......................... 0
Presents (birthday, christmas etc)...... 15
Haircuts................................ 5
Entertainment........................... 100
Holiday................................. 200
Emergency fund.......................... 300
Total monthly expenses.................. 2139


Assets
Cash.................................... 5000
House value (Gross)..................... 105000
Shares and bonds........................ 0
Car(s).................................. 10000
Other assets............................ 0
Total Assets............................ 120000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 121000...(645)......4.99
Total secured & HP debts...... 121000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Virgin CC......................1500......45........0
Total unsecured debts..........1500......45........-


Monthly Budget Summary
Total monthly income.................... 3,300
Expenses (including HP & secured debts). 2139
Available for debt repayments........... 1161
Monthly unsecured debt repayments....... 45
Amount left after debt repayments....... 1116

Personal Balance Sheet Summary
Total assets (things you own)........... 120,000
Total HP & Secured debt................. -121,000
Total Unsecured debt.................... -1,500
Net Assets.............................. -2,500

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using other browser.

hildosaver

My initial plan is to pay off a minimum of £300 extra per month with a target of £500 overpayment depending on how much cash I'm left with at the end of the month. My wife also owns a house that we plan on letting once we get the money together to do a bit of work on it to get it up to standard. In addition to that we recently bought a repo for £28k and have managed to get a renovation grant (it requires a total gutting out) and we have allocated around £40k in total to get the work done and hope to let it out also (we were very fortunate to receive a £40k inheritance around 6 months ago). So there you have it. I realise we are very fortunate in many ways but we have a long way to go to be where I want us to be.

Lois_E

Hi hildosaver and welcome to MFW. :wave:

I'm afraid I'm not one of the people who's good at commenting on other people's SOAs, but I'm sure one of them will be along soon.

Sorry to hear about your NE. I'm sure your plan is the best way to get yourself back in the black and ready to move if and when you need to. Everyone here is friendly and supportive, as you'll know if you've been lurking.

Good luck and enjoy the journey.

dimbo61

So you and your wife own 3 properties ?
One empty ( your wife,s old place ) and needing money spending on it before you rent it out ( does she still have a mortgage )
One which needs a complete rebuild and your home in NE.
Its a very good job you have got that £40K.
I would get the other place ready to rent out asap and earn some money from that.
then do the rebuild and rent that property out.
Then tackle the mortgage debt on your home.

hildosaver

That's correct, we have three properties in total, her house has a mortgage but its small enough that we can cover it without a problem even if its not let out, the work that needs done on it is relatively minor and I hope we can get it on the rental market within a month. The renovation job cost us 28k cash from inheritance and I anticipate we will spend another 10-12k renovating it which will be covered by the rest of the inheritance, this will take 2 months to get the house ready with a bit of luck. Ideally we could have both ready to let at around 400 pm each within the next two months. Until they are let I can afford 300 pound overpayments, once we let them ill up it to 500 on main house and start overpaying my wife's house by 150. That's the plan anyway...

hildosaver

Finally sent all the application bits and pieces to grants office and hoping to hear confirmation of our renovation grant on the repo house then we can begin work on it. It's quite a relief to get to this stage as it's been about a month's work just to get all the required forms and plans together plus getting builder's quotes.

I'm really looking forward to getting paid next month so I can finally make my first ever mortgage overpayment! That will be a bit of a milestone for me as I've been treading water for the last 3 years and now I can sense a bit of movement.

hildosaver

Get paid next week and it really cant come quick enough, I'm into my overdraft this month which I've tried to avoid. I owe out about £400 so when I get paid I'll be paying off £200 debt (will do same next month) and overpaying mortgage by £100 - more as a token overpayment as it will be my first one ever and don't want to avoid doing it because money is a bit tight.
We also discovered a leak in the mains pipe in my wife's old house which is a big blow, the floor is going to have to be ripped up to find and fix it, luckily her insurance should cover at least some of it but it's more money going on things other than the mortgage. Feeling the strain a bit.

We are still waiting on our grant application to come through, hoping to hear word in the next week and then with a bit of luck we can finally start restoration work on the repo house. It's frustrating though as little things keep creeping up and we cant seem to get ahead of ourselves and get to the place we want to be, I know that we will see a big improvement over the next few months, it's just getting there is the problem!

I'll let you know if I manage to stick to my first £100 overpayment. Oh and I am waiting on a possible PPI claim, so if I'm lucky that may help pay off my credit card debt which Ive had for about 8 years solid! that will be a nice feeling to finally have a clear credit card.

hildosaver

Good news yesterday, I found an old tax rebate cheque that had sat in my bros flat where I used to live from three years ago. It's for 500 pounds, I rang tax office and they are sending me a new cheque, which is fantastic! I'll put it straight on my credit card, which will leave 500 cc debt in total with hopefully another ppi claim coming my way soon. That will be a big relief to get it finally paid off.

hildosaver

A little down hearted today as I checked my account to find that my mortgage still hasn't gone down the £100 p/m I was expecting, I assume it must be next month that my fixed rate ends. As a result, instead of finally starting to overpay my mortgage I'll instead be paying £150 of my £300 debt back and then paying off another £150 from my credit card balance (currently £1082, was £2231 two months ago so doing well with that).

That way I still haven't started overpaying the mortgage which is very disappointing, but will still be paying off the more immediate debt that I currently have. I'm expecting the £500 tax rebate cheque to arrive in the next month and I'm also hoping to hear back about the PPI claim also, so I should be able to clear the credit card finally very soon. That will be a great feeling as I don't think i've ever had a clear CC balance for over 8 years!

hildosaver

Today is quite nasty in that my wife's house is currently getting the entire bottom floor ripped up to try and find a leak in the mains pipe - fortunately we are able to claim most of the cost through insurance however it's extremely depressing to see that kind of work being done. Still waiting on the grant for the renovation project to come through, we have been waiting almost 2 months at this stage which is extremely frustrating - we seem to be almost where we want to be but have to sit and do nothing until things start moving.

This month I've paid £150 of my £300 debt back and have paid another £150 off my CC bill (currently sitting at £900). I was pleased with myself this week as I got my car insurance renewal through and it was sitting at about £510 which was the same as last year - so I went to a price comparison website and managed to get a new car insurance for £260! What a massive difference! So pleased with that.

I heard back from EGG PPI and it seems they arent going to refund me any money which is disappointing, though I do have a £500 tax rebate cheque coming to me in the next few weeks so I cant complain!

Still on target to finally make my first overpayment next month, I'm planning on it being a £150 overpayment and also finally paying off my £300 debt with a £150 final payment. With a bit of luck I'll be overpaying £300 each month within 2 months time!

hildosaver

So just got paid and was delighted to see that my first mortgage repayment after my fixed rate ended is just over £100 a month less than I had been paying! So pleased with that!

Ive payed the final £150 of my personal debt and yesterday I made my first ever mortgage overpayment of £150. It felt like an important moment and I was relieved that finally after waiting for this moment for 3 years Ive finally done it

I also payed £500 off my CC bill from a tax rebate I received which leaves me with £750 CC debt in total so I plan on setting up a DD of £50 a month to get that paid off over the next year.