Plodding determinedly up a 300k mountain!

michelle09

Hi everyone! I have another thread on here but it is seriously out of date, so I figured I will start afresh. New year, new targets and all that.

OH and I completed on our first house in May 2016. We had a sizeable deposit due to my ability to save and OH's inheritance. We could have afforded a decent flat but decided to buy a slightly rundown 3 bed end of terraced house and do it up while living in it. This seemed like a much better idea before we were living somewhere with a smashed in door, no hot water and only lighting in part of the house. So far we have plunged 20k into repairs (which sounds like a lot, but the doors, windows, bathroom, cloakroom, boiler, radiators, some of the wiring and floors are brand new). It's certainly been a character building experience, from turning up after completion to finding the old owner still living here, to getting the first batch of wiring fixed and discovering that every lightswitch in the house now turned on the kitchen light, but we are getting there slowly.

The basic floorplan of the house we love, so once we are finished doing it up it will be brilliant. It's also in a great location, we are in London - hence the obscene price - but we are two minutes from the underground, can be in zone 1 in fifteen minutes from our front door, but can also be on the motorway out of London in the same time by car.

We are now seeing the light at the end of the repairs, so in 2017 I want to start making a serious dent in our mortgage. I have taken on a second job and we have two friends renting our spare rooms - at mates rates - so it is a good time to start reducing the crazy interest rates!

Figures -
House Price: £440,000 *gulps*
Mortgage: £259,700.00
Student Loan: £19,103.29
Repairs Estimate: £20k
Monthly Mortgage Repayment: £940.87. 1.74% interest, lifetime tracker.

I know that students loans are not a problem debt, but our aim is to try and clear the whole lot by the time OH is 40. Which gives us 13 years. This might be too much of a reach, but I would rather aim high and fall slightly low than not push. Though I may be relying on OH's lottery tickets actually paying off!

Going to check out other diaries too, hopefully the support here will help. :T

michelle09

SoA for anyone who can potentially spot some holes in my finances! Both OH and I work for the emergency services, which means shifts and overtime. The figures are a rough estimate of our take home salaries. The additional income is what we will take in rent in 2017 - it just hits the limit of the rent a room scheme allowance.

Our medical expenses are quite high because we are paying for private physiotherapy. On the waiting list for NHS, but if I can't walk, I can't get to work, so currently sucking it up and paying private.

Our other major expense is the gym - OH and I pay £50 a month (combined) for the local gym. Doubt we would find it cheaper in London, and I can't run like I used to due to knee damage. Swimming is much easier on the joints!

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 4
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 2400
Partners monthly income after tax....... 1750
Other income............................ 600
Total monthly income.................... 4748

Monthly Expense Details
Mortgage................................ 940

Management charge (leasehold property).. 13.85
Council tax............................. 147
Electricity............................. 29.5
Gas..................................... 45.06
Water rates............................. 36
Mobile phone............................ 48.38
TV Licence.............................. 12.18
Internet Services....................... 30.02
Groceries etc. ......................... 100
Petrol/diesel........................... 10
Car Insurance........................... 50
Car maintenance (including MOT)......... 20
Other travel............................ 180
Medical (prescriptions, dentist etc).... 40
Buildings insurance..................... 41.67
Life assurance ......................... 18.9
Presents (birthday, christmas etc)...... 20
Haircuts................................ 10
Entertainment........................... 100
Holiday................................. 100
Emergency fund.......................... 1000
Total monthly expenses.................. 2992.56


Assets
Cash.................................... 5000
House value (Gross)..................... 440000
Car(s).................................. 5000
Total Assets............................ 450000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 259700...(940)......1.74
Total secured & HP debts...... 259700....-.........-


Monthly Budget Summary
Total monthly income.................... 4,750
Expenses (including HP & secured debts). 2,992.56
Available for debt repayments........... 1,757.44
Amount left after debt repayments....... 1,757.44

Personal Balance Sheet Summary
Total assets (things you own)........... 450,000
Total HP & Secured debt................. -259,700
Net Assets.............................. 190,300

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

gd49

I think spending 25 a month on groceries is a bit optimistic! If you're out of contract for your internet might be worth seeing if you can reduce that, though with 4 adults you'll probably want fibre rather than ADSL.

Otherwise good luck, looks like you should still have the potential to make some overpayments, what emergency fund are you targeting? Our situation is similar except we spent all our money on a wedding last year, hoping to make some overpayments once our emergency fund is rebuilt!

michelle09

Ah, you're right! I meant £25/week.

We have about 9 months left on our contract for internet - we went with Virgin because signal here isn't great. My mobile barely works. We paid out for extra because OH likes to stream (and I keep vetoing sky TV, because it's so crazy expensive). Will investigate other options later in the year though, particularly once we don't have rent money coming in.

Looking for a 10k emergency fund? But also using that as repairs, so this year will stick 5k into that and 7k into repairs. Hoping that will get us a new kitchen by the end of the year. Ours is not really suitable for use.

We had a 2015 wedding, they definitely drain your funds! Do you have a diary here too?

gd49

Wow you're still very disciplined on your groceries, we're closer to £80 a week! A part of that is because my partner is gluten and dairy free and those foods are more expensive, and I'm too lazy to go round Aldi and Lidl, preferring just to do a weekly online shop with Tescos!

We're aiming for about 10k emergency fund too, it's not 6 months wages but it feels right. Cars also likely to need replacing at some point soon so need to have about 5k aside for that. Once you do have your emergency fund you should be able to really start attacking the mortgage, im looking forward to that time!

I don't have a diary, I'm not very good at doing MSE things so it wouldn't get updated very often!

NorthernMonkey1

How long are you tied into your phone contract for? I get 16gb data and 200 minutes with three for £17. I use facetime for nearly all my calls, so dont get anywhere near 200 minutes

michelle09

gd49 - We try to be! These days we shop in Asda, and if you go first thing on the weekend morning, there is loads on the reduced section. Last week they had all their Christmas veg down to 10 or 20p a bag. Freezer is stuffed full of veg. I am gluten free as well, but you can get around it. Try the allergy shows for loads of free/cheap food. And scout the reduced sections - bread normally ends up on there. I can generally get the GF loaves for under £1.

NorthernMonkey1 - That figure is for two phone contracts - £22 and £26. Mine (£22) is tied until May. Currently with EE but I don't get mobile signal in the house so will definitely be switching. OH is on O2 and we abuse the O2 priorities enough that it is a decent enough deal.

Does that £17 include a handset?

michelle09

Mortgage day! Which also turned out to be the day we paid our gym membership, so it's been a pricey one. We got a deal on our gym membership so paid £300/year each. As long as we use it regularly, then it's not a bad spend.

We also started getting quotes to replace our skylight windows. They're 17 years old, wooden, and I'm not sure if one is starting to rot slightly. Current quotes range from £2-3k and it looks like they can be done this month. It'll make a dent in this month's OP plans, but the current windows are leaking heat so it is sensible in the long run.

Today was also rent day for lodger #1, so we picked up £300 there. After the interest deducted from our mortgage payment (£383.94) we were sitting at £259,143.07 so I used half the rent money to OP £143.07 and round it off.

I also picked up some extra work this week. I private tutor when I can and have a student with an exam next week who wanted tuition tonight, tomorrow and at the weekend. Makes for a long week but it'll be a nice bonus in a few weeks.

Current Mortgage: £259,000.00

michelle09

It's the weekend! And for us, it's the one weekend a month OH and I get off together (the joys of shift work). Trying to keep costs down so we can pay for the windows, so we had a large fried breakfast and will shortly be heading off to the gym so OH can watch the FA cup match while we're working out.

This evening we're going to a secret cinema event in London that my brother and his partner bought us tickets for at Christmas. Looking forward to it!

Today is rent day for lodger #2 so I also put another £100 on the mortgage.

Current balance: £258,900.00

CathT

Hi Michelle, we no longer do shift work but I remember it well. Having one day off together a month was pretty grim! All the small efforts with the mortgage will soon add up. We shop at @ldi mostly and find it so much cheaper that the big supermarkets. Not sure they do any GF stuff but sounds like you've got that sorted. I wandered down the free from food aisle in t3sco he other day and was really shocked at the prices!

michelle09

Hi CathT - It has it's advantages, but mostly I would rather be back on standard working hours. Don't think we have an Aldi near us, unfortunately. But there is an Asda and Iceland not that far away and they're both ok.

Thanks. Hope it will start looking far more manageable soon.