£195,000 mortgage for a single mum!

pollyanna24

I finally received my offer through the post on Friday.

It confirms that I am taking on additional borrowing of £95,000, so hopefully it's all plain sailing from here on!

Just waiting for my brother to get back off honeymoon for us to sign the Transfer (I know he has received it) and then set a completion date.

My brother is worried to sign the Transfer as he thinks it means the house is then mine and he is worried that he won't get his money. Not quite sure how to explain to him that it is the way things are done. My solicitor said that he can ring her up for peace of mind, or get his own solicitor, but that it's not strictly necessary.

pollyanna24

My brother signed the Transfer, and had it witnessed. I have done the same. He said he has posted it back to my solicitor.

She says she hasn't received it yet, to give it to next week to see if she receives it. If not, she will send another by e-mail.

She said there is another form my brother needs to sign "Occupier Consent to Mortgage," which she also hasn't received, but I'm not even sure if my brother received this.

I'm not too concerned at the moment as I have about 6 months before it all needs to go to completion and any money that I save in the interim will mostly like be chucked at the original mortgage (i.e. approximately £105,000) when it is finally in just my name and I will just pay the monthly payments on the additional mortgage (£95,000).

pollyanna24

The solicitor has received the Transfer, whoop whoop! So my brother did send it back.

She hasn't received the occupier consent to mortgage form though, so has sent me a copy by e-mail to get him to sign.

Have a feeling that I will have to explain to my brother what this form is about. He will assume it is him kicking him out of my house on completion when in actual fact, it is because I am not kicking him out straightaway that he has to sign it!

pollyanna24

The house is still not in my name, but it's me delaying it now.

The solicitor gave me a completion date of yesterday, but me and my brother decided to hold off on everything till February. He is not in a position to move out at the moment and we have decided that instead of him living in my house with £100K sitting in the bank, we will just wait.

This benefits me more than him financially as I still only have to pay 1/2 a mortgage as opposed to two mortgages. Everything I am saving, I will put on the mortgage as soon as it is all in my name next year.

My solicitor has confirmed that when we are ready to complete, I just need to ring her a couple of weeks in advance so that she can sort the funds transfer out. My mortgage offer is valid for 12 months, so until October, so this is fine.

pollyanna24

My sis in law has had an offer on her flat, so hopefully that will all go ahead and they will complete around mid-February.

Think my brother is staying in the area now and they will look at houses in the New Year.

So the plan is still to complete in mid-February when hopefully they will be in the process of buying.

I have £8,418.84 in savings now.

£5,000 of this has to go straight to my brother and there are other things that I need to buy (stamp duty, solicitors, paying back an overpayment of tax credits, going on a summer holiday next year with another single mum).

But I am going to keep saving like mad until I have to pay the equivalent of 4 x what I pay now in mortgage payments and hopefully will have a lump sum (£7,500 ish) to just stick on the mortgage when it is in my name, so that instead of £200,000 (even though I originally thought it was going to be £195,000) will be around £192,500.

pollyanna24

When the mortgage is in my name, I will do another SoA, but I think I will be okay. The only thing I can cut down on is my personal spends, all my bills are pretty much at the cheapest they can be.

Another expenditure will be decorating the house. I've put it off while my brother lives in the house, but I will redecorate his room which is going to be my younger daughter's room (the girls have agreed allocation of rooms between themselves) and change carpets in my room and the stairs and landing and my dad is going to paint the kitchen.

pollyanna24

Thought I'd do an updated SoA. This is taken from my March 2016 spreadsheet as the house will be in my name from some time in February. Some bits aren't accurate as in process of changing a few suppliers. Plus I'm saving up so that I have a lump sum to put down on Mortgage 1 (this is a tracker mortgage and I can take back any overpayments if I need to).

Income - £1,933.12 - sometimes more than this depending on how the month falls.
Child Benefit - £137.60
Child Maintenance - £350.00
Total - £2,420.72

Mortgage (1) - £415.64
Mortgage (2) - £386.00
Childminder - £350.00
Travel Card - £212.00 - I don't pay this at present.
Groceries - £200.00
Personal - £150.00 - I need to break this down more, at the moment, I'm useless at sticking to it.
Council Tax - £148.00 - This will eventually be over 12 months and I will get 25% discount.
Gas/Electricity - £108.00 - Currently changing supplier, reducing to £72.
Pension - £104.00
Girls - £100.00 - This is clothes, days out etc.
Petrol - £50.00
Swimming Lessons - £42.00 - Starting in January. Hoping their dad will pay half.
Breakfast Club - £32.00
Water - £29.38 - Thinking of spreading this over 12 months.
Mobile - £29.00
Tax Credits Debt - £22.65 - Until July 2022!
Broadband - £18.17 - Currently switching provider, free for six months.
Line Rental - £17.99 - As per broadband.
TV Licence - £12.12
BT Sport - £9.00 - This is going. It's for my brother.
Cat Insurance - £5.78 - This is going. Brother is taking cat.
Fridge Insurance - £4.79

Annual Bills
Car Insurance - £29.17
Car Service - £16.67
Dog Insurance - £14.79
House / Contents - £12.50
Road Tax - £10.83
MOT - £3.75
Breakdown Cover - £7.08
Dentist - £1.75
Total - £2,543.06

Surplus / Deficit -122.34

I will have to add on some kind of TV package. At the moment, we have Sky+ in four rooms, but my brother takes care of this. I will want a cheap recordable option for the front room, and freeview in the other rooms. Is this the cheapest option?

pollyanna24

So, as you can see, I don't have a lot of surplus as it appears, but there are savings to be made etc.

Rather than thinking I want to be MF and of course I do, I'm going to focus on bringing down my total monthly mortgage payment bit by bit and therefore making life more affordable. I will do it in £50 aims I think. So, the initial monthly payment is £801.64 (although again this might change when we complete in February), so my initial aim is to get it down to £750! Baby steps and all that (and hope interest rates don't increase too quickly). Mortgage 2 is on a fixed rate though.

enthusiasticsaver

That is not too bad. The general principle is no more than a third of income on rent or mortgage so you are spot on. Can you go for a freeview + box for recording tv so no subscription? When does your childminding costs reduce?

Luckyinlife

I like your thinking there Polly

Defiantly needs to be done :] just take your time youll get there and things will settle

iv gone for vigin in the main living room but hardly watch it + smart boxes u can buy codes for the other rooms