Sorting our Life & Mortgage

Laura2014

I have been debating starting a diary for some time. I have been reading the MFW thread and DFW thread for over two years now. I have seen how much diaries have helped others, so I have decided to build up the courage and to bite the bullet.:eek:

DH and me got married earlier this year. We live in a house that we purchased at £195000 just two weeks before the Northern Rock collapse. Ours mortgage was with Northern Rock on 100% LTV.

In all honesty we over stretched ourselves on the house that needed a lot of work. At 22 and 23 we literally lived on beans and toast. Looking back now I really don't know how we did it as we were on a low salary. I guess we didn't really know any better. We did a lot of work in the house and overpaid the mortgage by £100 a month.

The benefit of overpaying though meant we managed to remortgage at 90% in a falling market with First Direct after our mortgage was taking over by NRAM (who didn't want to know us).

We are now in a position where we have 70% LTV and have nearly completed work on the house. We now owe £162,000 and the house has been valued at £245,000. We also managed to pay our wedding in full this year and big one-off family holiday.

I was really surprised how much we could save when we put our mind to it.

Our dream is to move to a bigger house near the sea and start trying for a family.

Hopefully this diary will help us achieve our dreams/goals by looking at the bigger picture and not get caught up in living day to day, which I feel we have been doing lately.

Feeling very excited to start this journey x

blackste

Welcome to the forum, i was a similar long time lurker, until this week.

Laura2014

blackste wrote: »

Welcome to the forum, i was a similar long time lurker, until this week.

Thank you. I don't know why but I found it a really big step starting a diary. I will go and find your one in a minute. :j

Laura2014

Morning Diary

So this morning I have made breakfast for us to take into work, made lunches for us for work, put washing out, emptied dishwasher and bins, walked 1.7 miles to the station. I really need to make sure I do lunches the night before.

We used to be able to park for free in a local car park 5 minutes from the station. They have started to charge though. It is still cheaper than the station car park but after not paying I really begrudge paying anything. So DH and I are walking – it takes 30 minutes each way. Just under 3 miles in total each day. I am really enjoying it and it gives DH and I time to talk.

At lunch today I need to write a letter to the council for a refund. This is the sort of thing I would leave, and forget about usually, so I'm determined to get it done.

We currently have a fixed overpayment £310 each month to our mortgage. We also have just over £3000 on a 0% credit card from our honeymoon . We additionally have just over £5000 in savings.

I don't really want to use the £5000 towards the credit card as this was our wedding presents and does not seem right to use it for debt. It's money people have kindly gave to us so I want to use it for something more substantial (iyswim)

The wedding really did wipe out our savings so it's like starting again I guess.

7 days to payday and £45 in the current account. But we have a full tank of petrol and fridge and freezer full (just need to top up fresh). This month we have paid for new fences, work on the car, new suits for DH. So quite pleased what we have achieved but can’t wait till payday when I can do a brand new budget x

Pushkin

Just wanted to say hi Laura, I too am a relative newbie (started my diary in the summer) and also felt nervous doing the first post. So glad I did though

Everyone is supportive, I love the anonymity of it - bit like free counselling and find it helps committing plans and targets in writing.

I am always so impressed with youngsters like yourselves doing this - am (sadly) about 20 years older than you and wish we had been so switched on years ago.

Look forward to reading your diary...

blackste

Laura2014 wrote: »

Morning Diary

So DH and I are walking – it takes 30 minutes each way. Just under 3 miles in total each day. I am really enjoying it and it gives DH and I time to talk.

As well as quality talk time, you get 1 hour per day excercise. People pay for that, and you got it free!!!


In my opinion, there is no point using your £5k savings, earning a little interest, to pay back your interest free CC. As long as your CC is paid back before the interest free period is up, its free debt.

Get practicing with the slow cooker. They are awesome inventions. We use ours very regularly in the winter, the house smells lovely all day.:)

JHH1982

:hello: Laura!

I'm also a longtime lurker and also recently ish started (another )diary! I find it focuses me immensely as well as reading as all the diaries of the inspirational people on here!!

Do you have any time scales for your move to the sea?
As blackste mentioned, dont give up on the SC - there's nothing like a wholesome dinner ready as soon as you get in from work esp during the winter! :snow_grin

I've subscribed and shall follow with interest! :T

JHH

Laura2014

Morning

JJH, Blackste & Pushkin thank you for popping in.

I agree with your thinking process Blackste re the credit card so I intend to keep chipping away until the 0% period ends when it should be clear

I did the letter to the council yesterday so have emailed it to DH to print and sign.

We got a call last night from the garage to say they can fit our car in for a service today. I was intending this to fall into next month's money. I have decided, rather than waiting, to take it from our savings (we have another saving account with £1000 in) and pay back from the allocated next month's money. The car is getting old so don't really want a to risk it.

Pre wedding I used to have saving pots for this sort of thing that I topped up each month. I really need to do that again. I guess this is the point of the diary - highlighting to me the things that need to be done.

Oh yesterday was NSD day :money:

Laura2014

JHH1982 wrote: »

Do you have any time scales for your move to the sea?

JHH

Hi JHH

The houses we are looking at are bigger and the area is more expensive. One of my friends has recently moved there and I have family who live there. The area is very family friendly with a big park with a lake and very good schools. Two minutes walk from the sea front.

We are trying for a family also so ideally we would be there sooner rather than later. In order to get the most out of it whilst children are small. My goal is within 5 years if not sooner. We have already discussed it with our mortgage company who confirmed we would be ok for the increase in mortgage with our equity. This is definitely thanks to overpaying.

But I would be looking to work part time if we were lucky enough to have a child whilst they were little. So I want us to be in the best possible financial position to move and to be able to work part time.

That's the dream anyway we just need to turn it into a plan x

Laura2014

Yesterday was busy, we put new fences in at the back of our garden (already included in this month's budget). I'm so pleased with them:j

Today I have to do the following

- clean drive from yesterday
- Argos clothes rails
- Aldi food shopping
- washing
- ironing
- get something for dinner for DBIL
- sit down with DH and look at accounts


Right just cooking a sausage sandwich and will get on.

Cannot wait for payday so I can implement a new budget and start my saving pots again.x

Laura2014

First time I have got on this week. Work has been manic.

Have a little confession to make - I booked a little holiday for next year last night. DH is so stressed at work so I though why not:eek:

I have made it MSE though as we are also going with my parents so saving petrol and airport parking. Not sure if I'm convincing myself here. :question::undecided

I paid from it from our wedding savings and want to pay it back.

The weekend I am going to sit down and do this months budget x