One Girl, One flat and One Mortgage!

[Deleted User] · 24 February 2013 at 10:19PM

Hi everyone

Let me introduce myself.
I’m Palema, I have been a member of MSE since 2006, however under this user name only since 2009. Predominantly frequenting the DFW boards due to stupidity several years ago!

I managed to get myself into a 5 figure sum of debt in my 20’s and over the past 7 years I have been in, and completed a Trust Deed, paid off the debt and have been saving for a place of my own.
I did move out and lodged with a friend for about 9 months before I entered the Trust Deed however with all my money problems and my friend’s then boyfriend spending a lot of time at the house I moved home. I completed my Trust Deed and 3 years ago I was discharged and my Credit report is now clear.

When I finished clearing my TD I started to save – The 1st year was great and I managed to save over £6K, however my car (Y reg Peugeot 106) began breaking down, costing me a small fortune in repairs, so in March 2010 I bought myself a brand new Hyundai i10, in cash.
I was offered a Credit Card in October 2009 by my bank and I accepted it and managed to run up a total (under £1K) and after my car I didn’t always save but would use the money to pay it off each month.

Now I am all grown up and I am moving out of DFW and into MFW!!
This time however I am moving into a place of my own, on my own. I am in desperate need of my own space (It’s just taken me nearly 35 years!)
I have a new build 2 bedroom flat in Edinburgh under the Shared Ownership scheme. Flat layout HERE I know there are some people who are not keen on Shared Ownership but for me it is the best option. Having looked into other properties I could have bought and got a mortgage on my salary, they were either in really bad areas of the city (not willing to move there) or needed lots of work done on them and I just can’t/ could not afford that either.
I had a little blip in November with my mortgage, although the Trust Deed is now off my credit report, some lenders are not willing to lend to you if you have not been discharged for 6 years (Just like Bankruptcy) others will not lend to you at all EVER! :shock:
Things took a step in the right direction at the very end of November when my mortgage was approved by another lender and things moved along very nicely!

THE BUDGET STUFF!
I have created a budget and it is pretty tight, however I have probably over estimated quite a bit on mostly everything, I don’t intend on going out for the 1st couple of months until I get settled, initially my TV will be my social life! I will adjust everything again in a few months once I have a better idea of the costs of everything! Then I can see by how much I can overpay on my mortgage.
The gas supply to the complex has its own source on site and we pay for it with a gas card, it has been used on another of the Housing Associations sites and has worked out cheaper, so I have only had to source an electricity provider.
I am a Nursery Nurse and I work Full-Time, I have been in my current job since February 2002 and I love what I do!
I work for Weight Watchers doing 1 meeting a week as a Meeting Assistant and get roughly £30-£40 per month from this.
I also work for a babysitting agency, it is pretty easy money to be honest and I am using this to earn the money for presents for Christmas, Birthdays and other celebrations. I have worked out that if I can get at least 2 bookings a month from them it should cover the present fund for this year and any extra will be going towards presents for 2014!

I have not added my WW or Babysitting money into my budget as they are not set amounts each month and the money will all go into a my gift and emergency accounts.
The way I control my budget is by using an Accounts app on my phone, it keeps me on the straight and narrow with my money and I can tell anyone to the penny how much is in each of my bank accounts! It’s my spending diary that I update pretty much as I am leaving a shop or buying something online. Because my phone is an extension of my right arm it makes it easier to update!

THE IMPORTANT MORTGAGE STUFF!
I have my mortgage with Nationwide it is a 25 year term at an initial APR of 3.49% for a 25% share of the property (£37,500 value mortgage for £28,125)
I would love to reduce the mortgage term in total by at least 10 years I just need to get settled first before I start trying to over pay.
The property has an occupancy charge (rent) this includes building insurance and all grounds work for the complex I have moved into.
I am paying £145.38 for my Mortgage and £307.98 Occupancy Charge for the flat.
I should also add that I do have the opportunity in the future to purchase further 25% shares of the property until I own it 100%
SO in easy terms
MORTGAGE AS OF MARCH 2013 - £28, 125
MORTGAGE FREE DATE – MARCH 2038

I think that's covered everything!!

P
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[Deleted User] · 24 February 2013 at 10:19PM

The accounts I hold, and what they are used for and how they appear on my Accounts App. The one in RED are not actual accounts just cash.

BANK ACCOUNTS

PLATINUM CURRENT ACCOUNT – Salary gets paid in, Direct Debits, Standing Orders, All other bills.

EASYCASH – Weight Watchers pay roughly £30 per month goes into this account and I am trying hard not to touch it.

FOOD & FUEL - £270 transferred from Platinum Account on payday each month to pay for all the petrol and food. At the end of the month the extra from the fuel will go into my Car Account and the remainder will be swept into my Emergency Fund.

CASH – Quickly realized I needed this in there as each time I took cash out I didn’t know where it was going or how much I had!

SAVINGS ACCOUNTS

BILLS – Any money I have designated for bills that is not used will go into here ie – TV, TV license, electricity, gas, mobile etc.

CAR – Monthly savings for my car: MOT/Service, Insurance, Tax, Work Car Parking and any other repairs that are needed.

EMERGENCY FUND – As it says on the tin!

GIFTS – Again as it says on the tin Birthdays, Christmas and any other celebrations that come up! This needs to have at least £600 to cover this year’s gifts, any more I will use to start for next year.

HOLIDAY – As it says, for holidays including spending money.

VSP – My Virtual Sealed Pot, I run the challenge on the DFW board HERE and have been part of it since its inception in 2009, it’s a great way of saving for something special or again as an extra emergency fund! I use mine as part payment towards my speedway season ticket.

NIECE 1 – Savings that my brother and SIL don’t know I have, will give her the money I save on her 21st birthday (May 2031).

NIECE 2 – Again my brother and SIL don’t know I have this and she will get the money I save on her 21st birthday (December 2033)

COIN SAVINGS

COIN JAR– Sealed Pot

£2 SAVINGS- £2 savings pot

CREDIT CARD

AMAZON CREDIT CARD[FONT=&quot] – I like this card as I earn points every time I spend on it and get a £10 voucher for Amazon for every 1000 points (double points for buying from Amazon) works out roughly £1 per point (2 per £1 with Amazon) but lower APR than other Credit Card I had and easy online system. Great for gifts!!

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Thrugelmir · 24 February 2013 at 10:49PM

Did you mean to post this on the MFW board?

Will be an inspiration for many when reading your story. :T

beecher2 · 24 February 2013 at 10:52PM

I take it this is a diary, rather than you looking for any help?

k2tog · 27 February 2013 at 1:24PM

Looks like you've come a long way. :beer:
Good luck on your MF journey

jimmybrid · 27 February 2013 at 1:54PM

Palema, let me be the first to officially welcome you to MFW. I think it's great that you've gone from DFW to MFW, that you seem to now have full control of your finances and that you have a goal.
I look forward to reading more of your journey along the way.

Good luck!

Lois_E · 27 February 2013 at 5:36PM

Hi Palema and welcome to MFW :wave:

What a lovely thing to do for your nieces. I'm sure that will be a very welcome boost to them when they each get to 21.

[Deleted User] · 3 March 2013 at 9:23PM

Hi everyone
Thanks for the welcome

Going back to work tomorrow after a week off to move in! I'm going back for a rest!

I only officially moved in on Friday!

The last week I had my carpets fitted on Monday, went to Ikea and bought my bedroom furniture and to Argos to buy a TV unit, bookcase, nest of tables and bathroom cabinet. Also my dad and brother collected my bed from the bed shop over the road from my flat! Tuesday was spent cleaning and hoovering. Wednesday my dad and I built up the units, my bed and other bits and pieces. Then my TV, Blu-ray player, fridge freezer and washing machine arrived. Thursday was the most important my Virgin Media got installed!! :j managed to get my TV set up about 5 minutes before the Virgin Media man arrived!! Friday finished setting up the last of the flat pack stuff and spent my 1st night in my new flat and in my lovely comfy new bed!!

:T:D
I have so much stuff still at my parents house - I never realized how much stuff I own!! :eek: I think it may take me a few weeks to work my way through unpacking and deciding what to keep, what to throw out what to eBay and what to put to charity.

I have also spent a small fortune on food! Stocking up on everything food related, to get me started! So hopefully I will not have to spend all that much each week from now on.

I also never realized how much starting out in your own home would cost! So far including the carpets/flooring (although mum and dad have paid for these) I am sitting at about £5K

Not alot else to report at the minute!

P
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