Don't seem to be getting anywhere

sugarcube84

I think I might get what you are trying to show on your SOA.


Are you trying to show the money you take our of the mortgage account?


For the purpose of an SOA you need to disregard moving money from account to account essentially what it shows is total money coming in less total money going out. What I think this SOA should show is a negative figure after debt re payments.

asparagus1968

incomings : £1300+£600= £1900
outgoings :£1099+£801=1900


This is why you aren't getting anywhere yet-you are totally balanced.
This will only change if you either UP the income, CUT spending, or when you eventually pay off the debts one by one.
I would put £1000 from savings into an ISA for emergencies and pay off some debt with the remaining £4000.Keep the bought house for the future.

greensalad

Why are you living in a house and paying rent when you own one? Could you live there?

2014NewStart

greensalad wrote: »

Why are you living in a house and paying rent when you own one? Could you live there?

It would cost far too much. It's a 3 bedroom semi detached house and I currently live in a 2 bedroom flat. It's not worth selling the house and buying the flat. The flat next to mine is on sale at £110,000. It's a leasehold with 87 years remaining with monthly service charges. I'm self employed and since I bought my house self certified mortgages are more difficult and I would say virtually impossible to obtain. I wouldn't qualify any more but I can keep my current mortgage forever.

My 3 bed house has got higher council tax, higher utility bills and higher maintenance costs. Currently the tenants pay all those costs and pay to maintain the gardens which costs £15 every 2 weeks over summer. The cost of transport would increase quite significantly. I currently don't have a car and would need one. I don't think I could run a car for less then £156 a month.

If I terminated their tenancy and moved in I would lose the £600 a month of rent that I get, save £100 a month in costs and save £475 a month in rent. The bills would go up by around £50 a month. I'd be worse off by at least £75 a month.

I've been upping income as much as possible a year ago my take home income was £250 a week and now it's £300 a week. I have tried increasing as much as possible. I don't think I can keep asking my clients to pay more but will try.

anna_1977

Hi, how about lodgers? could you live there and rent 2 rooms out, that might cover most of the mortgage and bills alone?

rockm87

I think you need to do your SOA again.

you could try and do it for both scenarios, one for if you lived in your rented house and kept your flat, and two for if you sold the house and lived in the flat.

Check the maths, that will give the honest answer of what is best.

System

Wow - these debts are quite unwieldy...may I ask how you got yourself in this pickle? Might be worth addressing this as it may be a further risk later in down the line when you manage to eventually get debt free

2014NewStart

andydownes123 wrote: »

Wow - these debts are quite unwieldy...may I ask how you got yourself in this pickle? Might be worth addressing this as it may be a further risk later in down the line when you manage to eventually get debt free

You can...

In 2001 I purchased the house for £80,000 using £20,000 cash I had personally saved over the previous 10 years as a deposit. I had a mortgage of £60,000 which was the maximum I could borrow based on my income at that time. The Virgin One account is a secured current account which is effectively a mortgage but with no regular payments required which is suitable for self employed people with an irregular income. The only condition is to keep under the credit limit which is now £70,000. I was in a relationship which broke down in 2013. After the relationship broke down I had legal fees to pay which cost thousands and then had to pay 50% of the increase in value to my ex. The house was last valued at around £140,000 which cost me £30,000. There were no children involved with this relationship. I've always had 0% credit cards using the money to pay off the mortgage to save interest. Once the deals ran out I found that a personal loan was cheaper than using the mortgage overpayments to repay the credit cards so I refinanced onto personal loans instead.

The way I look at it. I'm £30,000 better off than I was in 2001 without really saving any money at all. All the savings have come just from house price inflation which is why I am so reluctant to sell.

DawnW

rockm87 wrote: »

I think you need to do your SOA again.

you could try and do it for both scenarios, one for if you lived in your rented house and kept your flat, and two for if you sold the house and lived in the flat.

Check the maths, that will give the honest answer of what is best.

This seems really sensible advice. Could you have lodger(s) if you lived in the house, to help with the costs? And things like the gardens, could you not just do it yourself?

Not being critical, but I know from my own experience that it is easy to get stuck in a particular mindset, and see no alternative to the status quo.

2014NewStart

DawnW wrote: »

This seems really sensible advice. Could you have lodger(s) if you lived in the house, to help with the costs? And things like the gardens, could you not just do it yourself?

Not being critical, but I know from my own experience that it is easy to get stuck in a particular mindset, and see no alternative to the status quo.

I don't think it would work..I'll try an SOA anyway..

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned....................

Monthly Income Details
Monthly income after tax................ 1300
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 260 What would be lodger income. £60/week.
Total monthly income.................... 1560

Monthly Expense Details
Mortgage................................ -300
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 150 It's a higher band and currently in arrears as I explained earlier. It should go down to 126 in April.
Electricity............................. 41 Higher usage
Gas..................................... 45 Higher usage
Oil..................................... 0
Water rates............................. 30 Higher charges and higher usage
Telephone (land line)................... 17
Mobile phone............................ 27
TV Licence.............................. 13
Satellite/Cable TV...................... 7
Internet Services....................... 5
Groceries etc. ......................... 230 Extra loo roll and misc. items
Clothing................................ 25
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 300 Too far from bus station so more taxis required.
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 30
Pet insurance/vet bills................. 30
Buildings insurance..................... 15 Currently rent received covers this.
Contents insurance...................... 12
Life assurance ......................... 0
Other insurance......................... 7
Presents (birthday, christmas etc)...... 5
Haircuts................................ 5
Entertainment........................... 0
Holiday................................. 50
Emergency fund.......................... 0
Gardening............................... 15 I meant £15 every 2 weeks not weekly and summer only. I don't own a mower or hedge trimmer or any other gardening tools so it could also be what I would spend on tools.
Total monthly expenses.................. 759


Assets
Cash.................................... 5000
House value (Gross)..................... 139500
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 144500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 64500....(-300).....4.1
Total secured & HP debts...... 64500.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Sainsburys.....................10189.....443.......4.1
Halifax........................9440......295.......6.9
Santander 1....................3614......36.1......0
Capital One....................317.......5.........3.9
Santander 2....................3231......21.9......0
Total unsecured debts..........26791.....801.......-


Monthly Budget Summary
Total monthly income.................... 1,560
Expenses (including HP & secured debts). 759
Available for debt repayments........... 801
Monthly UNsecured debt repayments....... 801
Amount short for making debt repayments. 0

Personal Balance Sheet Summary
Total assets (things you own)........... 144,500
Total HP & Secured debt................. -64,500
Total Unsecured debt.................... -26,791
Net Assets.............................. 53,209

Created using the SOA calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.

I've had lodgers before. Never liked it. Stressed me out far too much

It's exactly the same. Still robbing Peter (the mortgage account) to pay Paul (the Sainsbury's loan) and I'd be sharing my house with someone who probably wants the heating on 24 hours a day, has long showers, leaves lights on, leaves a dreadful mess in kitchen and that house only has one bathroom. The 2 bed flat I'm renting for some reason has 2 bathrooms but the second bedroom is too small to be let to a lodger.

Basically the advice so far has been get rid of the pets (the OH would not be happy about that), cut out Amazon Video which I'll consider what alternatives are available, reduce grocery spend but as Christmas is approaching I think I'll keep it as is until next year. Sell or move into house which I'm reluctant to do as I can never get a mortgage again and really don't like sharing with lodgers.