Creating choices: my MFW diary

mumto2monkeys_2

Hello all

I have lurked on and off for some time now.

I think beginning a diary will help me to focus on my goals and what we want to achieve.

We live in a money-pit of a house. It was a poor choice made in haste and now we are firmly shackled to it, complete with one of the popular Northern Rock part loan, part mortgages that were so popular pre-crash. :eek: (We borrowed more than 100% :eek::eek:) We have paid over the odds ever since, although, thanks to them being bailed out, we can overpay as much as we like as often as we like and there are no penalties.

I say 'thanks' cynically as we have been stuck on higher interest rates for the whole time - we had an initial 5 year fixed term of 6.9% which took us to the end of 2012 and now we are variable at 4.78%. Yes, I do feel like kicking myself.

I probably should also mention that we had a 6 month break from paying in 2008 and watched the money shoot up to a £171k debt... An ill-planned maternity leave. Stupid is not the word. I think we simply got lured in by an easy way out. We were incredibly bad with money.

So, we have been in our home for nearly 8 years and have barely scratched the surface of what we owe on it. We are finally starting to see some equity, but there is so little that we are still trapped in the current situation. Some might read what I've put about the 100%+ loan and the payment break and think that it serves us right! It probably does.

My first aim is to build equity in the house to create some choices for us, whether we decide to move on from here or remortgage on a better deal.

Both DH and I work FT in good jobs; we have a teenage DD and DS(6). We bring in a good income, but it works on a monthly basis and we have no security.

I've been on the DFW boards for a few years and have adjusted a lot of what we spend, but our main issue is over the state of the house and needing to raise capital to get things done on it. We've spent £££ since we moved in and it is still a state.

We have a long road ahead of us and we have some debt on top of the mortgage. I know the rule of thumb is to pay that off first (I overpay the remaining CC), however the interest on our mortgage currently costs us £600 a month, so I think reducing this rather than panicking about paying back our loans early would be a better use of money, although I am open to suggestions.

We have lots of repairing to do on both the house and our financial situation, but one thing is certain - I want the choices we make from now on to be informed and sensible so we don't land ourselves in more problems.

I will be back to set some goals.

mumto2monkeys_2

Okay.

Current mortgage = 154027.25 on variable 4.78 but not enough equity to make it worth attempting to get a remortgage yet.

Guessing we are worth about 165k.

Portion that is loan: 3166.03

I've been overpaying the loan since last March and have brought it down from over 8k, so pleased with that. My immediate goal is to clear the loan alongside other debt over the rest of this year and then hit the mortgage to improve our LTV.

I am totally clueless about these things so really hoping to learn from
the boards.

Today = NSD. Need lots more of these. My short-term aim is to stick to my meal plans and stay away from supermarkets. We regularly top up and this drains money, especially on those nights when we are tired and I can't face cooking.

Easter holiday starts for us in 2 days. Big plans for a declutter and hopefully start listing things for sale from that.

Lots of changes afoot. Feeling positive!

mumto2monkeys_2

Loan OP today. £450 down. Looking for ways to make an extra contribution to it this month.

We're still doing well at sticking to the meal plans. Can't claim a total NSD as DS had a school disco that required a couple of pounds spends.

mumto2monkeys_2

Had an edit of first post to make mortgage situation clearer from the outset.

mumto2monkeys_2

My attempts to cut spending will include:

• Avoiding the supermarket, and if we must go, sticking to the list.
• Avoiding those little creeping purchases - the odd film off blink box for £3.49, the odd Kindle book that's 'only £1.99'. I'm a pest for this.
• Only getting clothes that we NEED and buying those items, not more.

I also need to seek out ways to increase income. I have taken on a lot of additional work between April and July so that should give us a boost, although that money will be designated to CC.

I also need to get back into surveys. I might also look to tutor next year depending on my work situation. I could pick up business quite easily around the place that I live, but it will depend on DH's commute. I can't really commit to certain times until he is more reliable.

I am also trying to lose weight. This is motivated by health but also because I suspect I am judged on my appearance and I want to start seeking a promotion in the next 18 months. This might be in my head, but at the very least losing weight will give me a confidence boost.

I'm after change in all aspects of our lives and I really think it is now or never. Bring it! :T:T:T:j:j

Alchemilla

Welcome and Good Luck!

Have you tried shopping at Liddly or Aldi?

We did it first from curiosity but now we prefer it. Makes a huge difference to the grocery spend.

mumto2monkeys_2

Alchemilla wrote: »

Welcome and Good Luck!

Have you tried shopping at Liddly or Aldi?

We did it first from curiosity but now we prefer it. Makes a huge difference to the grocery spend.

Thank you .

I've shopped at both and like both, but tend to find I need to top-up from other supermarkets which is fatal for me. I online shop now and get a delivery which has worked well, but might cancel this yet and go back to Aldi.

Since the recent price war started, usual supermarket is getting much cheaper for staples. I also cook from scratch. My main problem is sticking to it, so it's not the cost of the shop so much as feeling tired, sacking it off and going for pizza!

mumto2monkeys_2

Right.

Plan to change begins full-throttle this weekend as I tackle the house. I don't only need to build equity, the house itself is a money-pit and a bit of a disaster zone.

Given that it is a family home, clutter has built up around us. I work a lot of hours in my job during the week - it can be as many as 70-80 - and I will often do a day or both days on a weekend. Over the next few months I will be working 7 days a week because of the extra things I've taken on. Anyway, work situation means that housework is often superficial at best.

It is my aim over the next four days to do a proper deep clean and declutter. I am cringing at the thought of this :eek::eek:.

If I manage it, it will get everything in much better order to begin a good decorate where we can. It will also provide me with a more manageable home as the work piles up around me.

In terms of MFW, it is helping me to make the home nicer so that it might be marketable should we choose to sell when we've built equity. It should also help me gather some bits for sale to make some extra £££.

Another plus is it should be very good exercise. There will be a lot of scrubbing involved. :

Wish me luck, I will need it!

Alchemilla

Good luck and get that toothbrush out!

I have just bought 12 kg flour from AF and I plan to make and freeze pizza bases so quickie pizzas are easy on busy days.

Busy_Mee

Just wanted to say Hi and good luck. You sound incredibly hard working and I am sure you can succeed with your goals. Don't beat yourself up about previous financial decisions - we all make decisions because it seems the right thing to do at the time, but things often change as the financial crash did - lots of people got caught out.

I also work long hours and also struggle with my weight and I think part of that is that I eat because I am tired not because I am hungry. I am trying to ask myself whether I am really hungry ? I have found tracking what I am eating on Myfitnesspal has really helped too.

Good luck with the cleaning - I have also earmarked a couple of rooms for a deep clean ( can't face it all at once !)

Anyway I have subscribed to watch your progress : )

mumto2monkeys_2

Alchemilla wrote: »

Good luck and get that toothbrush out!

I have just bought 12 kg flour from AF and I plan to make and freeze pizza bases so quickie pizzas are easy on busy days.

Pizza bases are a fab idea - thanks . I think I will need the toothbrush! :eek::D