Finally we are all on board :D

keza

Hello everyone. :wave:

So I guessed its time we took the plunge and started to chip away at our mortgage now we have finally settled. I will give you a brief bit of background about us and some figures on the mortgage as a start, then post my SOA which is already pretty strict (something I've become very good at ). We plan on starting big overpayments towards the end of the year and between now and then, we plan to put away smaller amounts whilst we have a small splurge .

Me - I am 29, 30 this November, currently working full time but about to go on maternity leave with our second child. I have a well paid job for which i am very grateful and I plan on going back to work part time next year.
DH - Hubby is almost 35, has a very well paid job and works full time in the city.
Kids - We have DS1 who is 3 and about to start preschool, just as new baby arrives! and Baby2 who remains anonymous as we didn't find out what we are having. He/She are due to arrive around 13th September

So that's the family bit out the way, now onto finances (SOA to be posted below).

currently our mortgage stands at a whopping £194,501.02 which is broken down as follows:
Part 1 - £157,322.29 - 2.5% at present, tracks 2% above base rate
Part 2 - £12,765.15 - 5.19% at present but dropping to variable of 3.99% next month, this was fixed at 5.19% for 2 years
Part 3 - £24,413.58 - 4.89% fixed for 2 years until April 2017. this part was our recent home renovations which has increased the value of our home.

We brought our home for £195k 18 months ago and have spent that time doing it up. It has recently been valued at £260k so has been a good investment. We want to clear as much of the mortgage as possible with a view to taking on our forever home in around 5-6 years time.

So our plan is to try and clear the 2 smaller parts of the mortgage in 3 years. this is a challenge as I will be on leave for one of those years and so not bringing in very much dough! But here we go.....! *takes a deep breath*

keza

so here is our SOA. lots of room for overpayments thankfully. will explain a little more where needed

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1 - soon to be 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1947 - soon dropping to maternity pay for 9 months
Partners monthly income after tax....... 3365
Benefits................................ 82
Other income............................ 0
Total monthly income.................... 5394

Monthly Expense Details
Mortgage................................ 973.8
Secured/HP loan repayments.............. 315.60
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 151
Electricity............................. 35 - dual fuel
Gas..................................... 0
Oil..................................... 0
Water rates............................. 31
Telephone (land line)................... 20.95 - line rental and broadband
Mobile phone............................ 76
TV Licence.............................. 12.12
Satellite/Cable TV...................... 6.5
Internet Services....................... 0
Groceries etc. ......................... 300
Clothing................................ 0
Petrol/diesel........................... 50 - I get my fuel paid for for work so that's not included around £80
Road tax................................ 0
Car Insurance........................... 33.57
Car maintenance (including MOT)......... 21.32
Car parking............................. 0
Other travel............................ 190 - DH season ticket and oyster card
Childcare/nursery....................... 465
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 11.03
Contents insurance...................... 0
Life assurance ......................... 11.98
Other insurance......................... 30 - dogs ins for my dog that lives with my parents
Presents (birthday, christmas etc)...... 80 - xmas savings club and 30 birthdays pot
Haircuts................................ 50
Entertainment........................... 250
Holiday................................. 120 - family caravan contribution
Emergency fund.......................... 250 - savings we cant touch
lotto................................... 16
ADT..................................... 26.99
Total monthly expenses.................. 3527.86


Assets
Cash.................................... 1000
House value (Gross)..................... 260000
Shares and bonds........................ 1000
Car(s).................................. 25000
Other assets............................ 0
Total Assets............................ 287000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 194501...(973.8)....2.5
Hire Purchase (HP) debt ...... 25000....(315.6)....4.2
Total secured & HP debts...... 219501....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-


Monthly Budget Summary
Total monthly income.................... 5,394
Expenses (including HP & secured debts). 3,527.86
Available for debt repayments........... 1,866.14
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 1,866.14

Personal Balance Sheet Summary
Total assets (things you own)........... 287,000
Total HP & Secured debt................. -219,501
Total Unsecured debt.................... -0
Net Assets.............................. 67,499

Created using the SOA calculator at www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using Firefox browser.

getmore4less

I would do the SOA based on Maternity (averaged for the year if taking the unpaid part) for the first year,

getmore4less

Thats a lot of car to have sitting around not doing much.

Will you still have the childcare/nursery when on maternity.

keza

Hi getmore4less. Yes I will redo the SOA when my wages drop in the new year. I get full pay for first 14 weeks of maternity leave. :beer:

The car is used for work and will be used for the kids when I'm on leave. It's a 3 year lease. I do use about £130 diesel a month but work pay around £80 of this so I didn't add it to the SOA

keza

Childcare will drop to £165 in September for childcare vouchers which we are building up for when baby2 goes nursery sept 16 when I return to work. This should save us money in the long term.

SuperSecretSquirrel

Hi keza, that's an extremely comfortable spread between income and outgoings, so you should be well placed to hammer away at that mortgage and start boosting your assets It'll be a little slower this first year due to your happy change of circumstances, but you should still be able to make a good start!

What kind of mileage do you do, and do you or OH get a car allowance from work? I agree with getmore4less that it looks like costs could be cut in this area, when the lease ends.

keza

Hi SuperSecretSquirrel! :wave:

thanks for dropping by. I do a 40 mile round trip to work everyday in the car although I suspect it wont be used quite as much once the new arrival is here. We have only just started the lease in April this year. It's our 'treat' so to speak (albeit an expensive treat!). we dont go out that often and take lunch to work everyday etc so prefer to spend our treat money on a new car the lease is for 3 years.

Our rise in wages recently is due to DH getting a new job with a large salary increase which makes up for my drop in salary which will come around 4 months into maternity leave

keza

I have made a little note in my planner to update this diary every Friday with the weeks goings on etc so i can keep on top of things.

This week we have changed energy supplier and found we have been paying too much all year (I'm quite tight with the heating in the winter ) so we have around £300 rebate coming our way shortly. this will cover some of our pending Baby2 expenses which will materialise over the coming weeks before they arrive. our new tariff is half the price we have been paying this year so really pleased with that outcome.

We also need to pay off the last of the home improvements we have done this month, including carpet for the nursery and 4 new interior doors which are being fitted next weekend. these are the last of the bigger expenses to be paid on the house, except if we decide to replace the garden patio or have a drive put in. looks like only a small overpayment coming this payday due to all these additional expenses but as they are one off's we are hopeful we can put a bit more umph into it next month and during the month