The slow but steady road ....

MFWSouthCoastGal

Hello all.

I've been lurking on this board for a little while and I'm enjoying reading all your stories. I thought it was about time I chimed in with my own and started a diary to help me with my money saving efforts. I've subscribed to a few threads and will start saying hello! It'd be lovely to have some company from those of a similar mindset

So first, a little about me .... I'm a 31yr old gal, live alone currently, but have a bf. Last year I took the home-ownership plunge as a first-time buyer and purchased a 30% share in a 2-bed maisonette. I would like to pay off the mortgage on my share as quickly as possible so I can buy further shares, and hopefully own my own home outright. I do not have grand ideas of a huge home in the future, but upgrading to a small house with a garden would be the long-term dream.

I'd love to hear from anyone else who has gone down the shared-ownership route. It was a big decision for me to make, as I knew I'd still be 'wasting' money on rent every month, but I'm actually so pleased with my move. I live in a really expensive part of the south coast and getting a mortgage big enough to buy outright just wasn't an option on my average salary. I kept saving for a bigger deposit, but house prices were rising faster than I could save. Anyways, I now live in a spacious flat and can afford my own space instead of sharing a mouldy, crumbly old rental (what I was doing up till last Summer), so it's a great start.

So, mortgage stats:

£57,000 May 2015
£53864 Jan 2016
Monthly payment £277 at 3.2% fixed for 5yrs (Shared ownership mortgage 25year term)
Monthly OP - £300 (some from monthly income, topped up with a little from savings).

If I continue to pay at this rate I could be MF by 2025, instead of 2040. I'd like to reduce this further if I can, but that'll prob be dependent on either getting a better paid job, or my boyfriend moving in and contributing. In the meantime I continue to be as much of a MSE as i can!

MFWSouthCoastGal

Already having quite a strict budget, I thought I'd create my own current SOA, so I know where I'm at. I don't think i've missed anything ...

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details[/b]
Monthly income after tax................ 1518
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1518

Monthly Expense Details
Mortgage................................ 277
Secured/HP loan repayments.............. 70.69
Rent.................................... 350
Management charge (leasehold property).. 86
Council tax............................. 90
Electricity............................. 30
Gas..................................... 30
Oil..................................... 0
Water rates............................. 25
Telephone (land line)................... 17
Mobile phone............................ 25
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 130
Clothing................................ 10
Petrol/diesel........................... 40
Road tax................................ 10
Car Insurance........................... 25
Car maintenance (including MOT)......... 15
Car parking............................. 8
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 8.33
Life assurance ......................... 0
Other insurance......................... 4.69
Presents (birthday, christmas etc)...... 10
Haircuts................................ 0
Entertainment........................... 20
Holiday................................. 20
Emergency fund.......................... 0
Toiletries.............................. 10
Total monthly expenses.................. 1323.83


Assets
Cash.................................... 6700
House value (Gross)..................... 72000
Shares and bonds........................ 0
Car(s).................................. 300
Other assets............................ 0
Total Assets............................ 79000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 53864....(277)......3.2
Hire Purchase (HP) debt ...... 1272.36..(70.69)....0
Total secured & HP debts...... 55136.36..-.........-

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

Monthly Budget Summary
Total monthly income.................... 1,518
Expenses (including HP & secured debts). 1,323.83
Available for debt repayments........... 194.17
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 194.17

Personal Balance Sheet Summary
Total assets (things you own)........... 79,000
Total HP & Secured debt................. -55,136.36
Total Unsecured debt.................... -0
Net Assets.............................. 23,863.64

dark^knight

A quick hello and welcome...and good luck.

Petal88

Hi and welcome! Best of luck on your MFW journey and I have to say that I'm impressed with your determination (and SOA!) - I'll definitely be reading your diary with interest

MFWSouthCoastGal

Thanks dark^knight and Petal88!

shangaijimmy

Welcome to the obsession!

SueP19

Yes welcome to the addiction

I notice your HP says 0%, is that right

Great budget, by the way

Moneyfordreams

good luck with your plans

turtlemoose

Hi welcome to the board! I too began my home ownership journey with shared ownership. I bought 50% of a 3 bed house in August 2007, and the mortgage plus rent cost was cheaper than the 1 bedroom flat I was previously living in! I staircased just once, buying the other 50% and the freehold in November 2011 (although I had started the process in May 2010 - I had a nightmare with the HA!). I now own another house (mortgaged) that I live in, and the original shared ownership house is now rented out to long term tenants.

MFWSouthCoastGal

SueP19 wrote: »

Yes welcome to the addiction

I notice your HP says 0%, is that right

Great budget, by the way

Hi Sue,
Thanks! I think I'm a bit obsessed already!
I've got a 2 year 0% credit loan on the carpets I had for my flat (it didn't come with any!) I'm not sure I've really put that in the right column, but yes I spread the cost of the carpets pay off £70 a month which will be paid off by August 2017.

MFWSouthCoastGal

shangaijimmy wrote: »

Welcome to the obsession!

Moneyfordreams wrote: »

good luck with your plans

Thank you both! I'm looking forward to catching up on everyone's journeys.

turtlemoose wrote: »

Hi welcome to the board! I too began my home ownership journey with shared ownership. I bought 50% of a 3 bed house in August 2007, and the mortgage plus rent cost was cheaper than the 1 bedroom flat I was previously living in! I staircased just once, buying the other 50% and the freehold in November 2011 (although I had started the process in May 2010 - I had a nightmare with the HA!). I now own another house (mortgaged) that I live in, and the original shared ownership house is now rented out to long term tenants.

Thanks turtlemoose! It's really exciting to hear that you started as a shared-owner! I have to admit I do wonder what the process will be like with my HA when I either come to staircase or sell the property, but I guess I've a long way to go before that yet.