New Life, New Diary

philhbug

Ok, so New life might be a bit of an exaggeration, but I'm certainly in a very different situation to where I was with my last diary.

That was left 3 years ago with a balance of ~94k on a house I was living in on my own.

At the end of 2011 I was left some money by my last grandparent, this has been very useful and helped me a great deal, but as I suspect is almost always the case you'd rather have the person still around than the money. Still, I made sure it was used for something that would make a difference.

Mid 2012 I met someone and she moved in 2 years ago, this has increased my income effectively as she is paying a proportion of bills etc.

This time last year I re-mortgaged and used some of the inheritance to improve the repayments/balance (details in next post).

Finally, 6 weeks ago I got engaged (this isn't money saving, however it has made me even happier) so we have a wedding and honeymoon to pay for. We've been very lucky in that parents have offered to pay for various things to help us out.

So I figured now would be a good time to try and get back to saving/overpaying (where possible) and get a diary back up to keep track of it all.

philhbug

Right, the gory details.

I remortgaged just over a year ago, in the process I reduced the capital amount significantly and got a better LTV and interest rate and shortened the term so this is what it was then.

Mortgage £75,000 (60% LTV) @ 2.09% for 12 years. MF date Sept 2025

The year(ish) since then has seen overpayments of £1,000 making the current debt £68,463.

So that is where I currently am, I won't see this mortgage paid off due to moving plans, but everything I can manage will make the next house easier.

philhbug

Figured having mentioned it I'd put some details about our moving plans.

We'd like to move to a nicer/bigger house more in the country then we currently are. Essentially this will be our family house that we'd be in for 20+ years so we want to get it right but it will be a big step up in terms of mortgage.

From looking at what's around currently and the equity/savings we have it would be around £200k mortgage. This is why paying off as much as possible now, on a cheap mortgage is important.

Timescales for this move are around 15 months time, so 6 months after getting married.

Better get saving!

JimLad

Hello Phil! Sounds like you have it all planned out!

Have you thought about remortgaging your current house buy to let when the time comes to move? Then you would have the money for the next house and potentially the mortgage paid for on the first house by the tennants. Eventually leaving you with 2 houses?

Its something we are considering at the moment so would be interested to hear others opinions.

philhbug

Hi Jim,

Plans are all well and good, who knows if they'll all come off though.

I do think about it every now and then, but I haven't got as far as considering the finer financial details of it, it may come down to what BTL mortgage I could get and required rent to cover it and how much equity I can afford to get out in to use on the new house.

Maybe I'll start a spreadsheet when I have a spare couple of hours (at this rate that won't be any time soon though, the Todo list is getting longer!)

philhbug

Well curiosity got the better of me so I looked up BTL rates, turns out I pretty much have to have 25% deposit, which would severely restrict the next house I could get and the mortgage on that, so it doesn't look like an option.

JimLad

philhbug wrote: »

Well curiosity got the better of me so I looked up BTL rates, turns out I pretty much have to have 25% deposit, which would severely restrict the next house I could get and the mortgage on that, so it doesn't look like an option.

So you mean that once you have paid it off you could only get 75% back out as a BTL mortgage for deposit on your next one?

philhbug

Yes, and because at the time I want to move I'll only have about 50% equity that means I'd only be able to take 25% as deposit to my new house which given the higher house value would give me a prohibitively high LTV.

There's time for things to change, and there may be more specialised mortgage companies that would offer higher BTL LTV so I'll keep an eye out.

philhbug

Reading around a few diaries and have noticed the phrase 'Tilly Tidy' which didn't exist when I was here before, headed off to google for an explanation.

First result was a link to a thread here explaining it!

My bank payments tend to go out in clusters so the nearest pound each day may not work too well, might have to go for the nearest £10 each week. They can go straight to the mortgage though as it's all online.

JimLad

There is someone on this forum called Tilly, did it come from her?

I do it once a month on pay day where I work out how much money I need in my account until the next pay day and put the rest into my ISA (or overpay when its earlier in the year and we havent reached our 10% limit).

philhbug

Yea, there's a few suggestions she should trademark it!

I don't think the 10% limit on my mortgage is in any danger, that would be around £550 overpayment a month, nice but I can't see it happening.