Mission Possible - first step deposit and mortgage, second step 'Mortgage Free'

edited 29 July 2017 at 5:21PM in Mortgage-Free Wannabe
27 replies 2.6K views
penny*pincher_2penny*pincher_2 Forumite
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edited 29 July 2017 at 5:21PM in Mortgage-Free Wannabe
:j
Hi everyone!

I have been lurking ‘un-registered’ for around a week – and WOW, you guys have inspired me :T – I will come out of the darkness and will soon start commenting on your diaries, but I thought first off, I would introduce myself and tell you about the journey I am now embarking on!

I am not quite as advanced as you all, I have not yet obtained a mortgage to ‘pay off’ – but I really hope that when I do, it is paid off as fast as possible!! I hope to be in a good position to buy in the next 12 – 18 months and am ideally looking at new-builds for around £190 – 200k. I hope you do not mind that I am joining early :rotfl:


So I am currently 35, 36 this year :eek: – single and cat-mummy to my two little fur-babies . I rent a property and have been here for approx. 8.5yrs. – Looking back it could be seen as a waste of money, but it was right for me at the time and I absolutely love living here. I am a qualified nurse, you will probably all know that a nurses wage is not massive, but I have ventured down a managerial route to see my finances improve (and do a job I love!) to allow me to be able to hopefully get onto the housing market. – I am 100% planning on doing this by myself.

So – let’s have a look at the finances. (There is potential I may further progress in my career over the coming 12 months and therefore I hope any potential mortgage amount may increase for my ‘dream home’ to become a reality!)

Monthly in’s/out’s- SOA if you prefer ;)

Income (after tax, NI and student loan of £129 per month)
£2,185 – sometimes I may complete some overtime, but this is not included.

Outgoings:

Rent (Private, 2 bed): 500.00
Council Tax: 98.00
Gas/Electric: 48.22 (New provider - better deal!)
Phone (line and broadband): 18.99 (New provider on 18 month contract - it was £40.99!)
AA breakdown: 16.86 (need to get a better deal in January!!)
Dental insurance: 22.18
TV License: 12.12
Nursing membership: 16.40
Cat insurance for cat no1: 34.21 (covered for life)
Cat insurance for cat no2: 19.46 (covered for life)
NOWTV: 3.99 (reduced from 9.99 until November - then I will cancel)
Mobile: 12.00 (was £38, recently reduced to a new package)
Water: 50.00 (billed by landlord due to multiple dwellings on land – it is usually cheap but I like to overestimate as bills can be irregular)
Monthly savings to cover MOT, Service, Car Tax & Insurance, Nurse annual fee, cat vaccinations: 63.30
Help to Buy ISA: 200.00
Holiday spending money/ Christmas account: 200.00
Food, household and petrol: 200.00

= 1, 515.73

So there it is, in black and white!

2,185.00 – 1,515.73 = £669.27

I absolutely plan on finding cheaper breakdown insurance and also reviewing the cat insurance. My cats are a priority for me, but – they are indoor cats, which means their likelihood of injury is reduced (for now, they will hopefully venture outside when I move) and they are both getting older, 9 & 7 so their premiums have shot up (despite being healthy and one only ever having a claim for approx. £400) and – their excess is increasing too… so I am wondering about getting them a more standard insurance which does provide cover, but have a more realistic approach to it, especially as I have heard Pe*Plan now might not provide as much cover as they once said they would. I have had cats in the past develop life-long conditions such as diabetes and needed insulin daily.

I have no debt other than my student loan (approx. £3600) I did consider wiping it but I did read MSE advice regarding student loans and saving for a house deposit, so I am thinking I will just hold out for now and see that paying it off is not as much of a priority compared to saving for a deposit.

As far as savings go, I currently have:

£1200.00 in help to buy ISA (I hope to get at least 1k in Government ‘bonus’ – wish I had started it earlier! – I will be paying £200.00 per month into this as per above breakdown)
£13,032.56 in house deposit/ cost savings
£214.22 in holiday account (I have a holiday booked and paid for in October, food paid)

- I get paid on Monday and fully plan to add £1000,00 to my savings as I have had a ‘frugal’ month or two [FONT=&quot]��:T:beer:[/FONT]

You will see that I have not allowed for ‘fun/social’ times – these are things I will look at on an ad-hoc basis, mostly I see friends at each other’s houses, odd cinema trips etc. I also sometimes work night duty so I can be pretty busy whilst on this mission. I guess it may be impossible to reduce my monthly £200.00 for food/household and petrol… but I will certainly give it a go!! – I welcome all hints, tips and advice, please please spam me with them!

Also, I was not a 'well-behaved' 18 - 25yr old when it came to credit/store cards - my credit rating is the 'upper' end of fair now, and all debts were fully paid with no CCJ's, some missed payments though :( whoops. But I learnt the error of my ways which is why I have no outstanding debt on credit cards/ accounts - did anyone find themselves in difficulty with obtaining a mortgage in the same circumstances? I am worried about the impact this may have on any mortgage application.

Great to be here and I just KNOW that having a diary will spur me on :D


P*P :)
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Replies

  • michelle09michelle09 Forumite
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    Hey P*P, looks like you're preparing really well! I had one missed CC payment and a horrendous credit rating and it wasn't an issue on our mortgage at all - the mortgage companies look for trends and the last ten years will be more important than the previous seven.

    Your cat babies sound adorable. :) Mine is about 2 (she's a rescue so we don't know exactly) and currently stretched out on the sofa next to me.
  • penny*pincher_2penny*pincher_2 Forumite
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    michelle09 wrote: »
    Hey P*P, looks like you're preparing really well! I had one missed CC payment and a horrendous credit rating and it wasn't an issue on our mortgage at all - the mortgage companies look for trends and the last ten years will be more important than the previous seven.

    Your cat babies sound adorable. :) Mine is about 2 (she's a rescue so we don't know exactly) and currently stretched out on the sofa next to me.

    Hi Michelle!

    Thanks for your reply - I am quite nervous about doing all of this and then finding a lender wont touch me... I can overthink things sometimes!!! Fingers crossed it will all be OK. I went into branch to set up my ISA as online banking was having a meltdown, the adviser I spoke to said that from their point of view I was in a good position - but I don't necessarily want to use my bank to supply my mortgage.

    Yep, love my cats. One is rescue and the other is her 'baby' - I didn't realise it was a BOGOF at the time of her coming to live with me haha! - But I love them both very much. Whilst they live the high life on their premium cat food I will be enjoying beans on toast :rotfl:

    I am pleased to hear your fur-baby is relaxing on this rather grim day... the weather here is pretty naff!

    :D
  • michelle09michelle09 Forumite
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    Aww! Our rescue was found by a family who kept her but discovered she was pregnant before taking her to a home. They were happy for one cat but 7 wasn't quite what they had in mind! She's fine - she was a little on the damp side when she came scampering in earlier, the house is better for the afternoon.

    Nicely spoiled kitties then? I have started taking cereal for lunch at work, cuts the portion cost down to about 25p. Not bored of it yet. The fur baby eats Asda own brand cat food - and all the cat food our friends give us because their cats no longer eat it.

    If you're worried is it worth speaking to a mortgage broker? They should be able to look at your finances and give you a good idea what is realistic?
  • KittenkirstKittenkirst Forumite
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    I'd second having a chat with a mortgage broker. We were concerned with ours as gf has an interest only mortgage on a flat she rents out which means some banks wouldn't offer us their mortgages. They helped identify the ones most likely to accept and advised on how to ensure the buy-to-let was recorded properly.

    Two cats is lovely, we have two little brothers and I like to think they then have company and an ally when they go out into the big wide world of 'outside'

    Grocery budget and eating out are the areas I'm trying to keep low- have you read the meal planning threads on the old-style boards? I'd recommend having a regular read through. I swear by homemade soup evenings for keeping costs down.

    Looking forward to reading your diary as you progress :)
    First home- Oct’16 until June’21: £170.995- Overpayments made £13,784 (25% extra!).
    New forever home- Sep’21 £309,449 @ 2.05%. Plan to clear it before 30 years!!!!!!
  • penny*pincher_2penny*pincher_2 Forumite
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    Third Anniversary 10 Posts Name Dropper
    Hi Kittenkirst :wave: - thanks for stopping by and for the message. I do plan on seeing a mortgage broker, as both you and Michelle suggest (thanks Michelle :) ). I feel it might be a bit soon to do it now?

    I did complete an AIP with my bank last year, just to see,and it was passed, so I am hoping that is a good sign :j - I have a lot of saving to do. I was going to cancel my October holiday and get a refund, but my 1k flights will only refund taxes, so about £180.00 :rotfl: so I think I will just go and enjoy a lovely break.. but I can't help thinking about the other things I'd save on if I cancelled it... hotel etc. But no, we all deserve a break!

    Hope everyone has a great Sunday - yesterday was a NSD for me :T

    Penny :D
  • penny*pincher_2penny*pincher_2 Forumite
    69 Posts
    Third Anniversary 10 Posts Name Dropper
    michelle09 wrote: »
    Aww! Our rescue was found by a family who kept her but discovered she was pregnant before taking her to a home. They were happy for one cat but 7 wasn't quite what they had in mind! She's fine - she was a little on the damp side when she came scampering in earlier, the house is better for the afternoon.

    Nicely spoiled kitties then? I have started taking cereal for lunch at work, cuts the portion cost down to about 25p. Not bored of it yet. The fur baby eats Asda own brand cat food - and all the cat food our friends give us because their cats no longer eat it.

    If you're worried is it worth speaking to a mortgage broker? They should be able to look at your finances and give you a good idea what is realistic?

    Kitties are very spoilt, but they deserve to be :rotfl: - glad I didn't have the option of 7... !!

    This year, thankfully, they have already had new beds which are quite plush and will keep them cosy warm in the winter! They will only eat gourmet* cat food -well, cat No1 anyway... she is a bit of a princess. I found B&M sell gourmet at a much better price and do the large 60 sachet boxes.. stops me "popping to Tesco" :) - I won't tell you how much I got on my last trip... but it will keep them going for some time!!

    Having cereal is such a good idea, thanks for that tip. Easy to transport too! :D

    Penny
  • penny*pincher_2penny*pincher_2 Forumite
    69 Posts
    Third Anniversary 10 Posts Name Dropper
    Yes, the title is right – I am planning on a whole week of NSD’s. Last time I spent money was on Friday so let’s see how we go.

    There will be two exceptions to this. I must buy some cat litter, and if I need petrol I will have to buy it. But otherwise – no card purchases and no cash buys. I have looked in the cupboards and I seem to have enough tins and packets – freezer appears stocked too. I stupidly brought into a diet last year – packets – and still have about 3 months of products to use. Milkshake anyone?? :rotfl:– But being serious, it would not hurt for me to cut back and be on a diet for a while!

    So this week I am working Monday – Friday :eek:. I must be the only person who prefers shift work? Get all the hours done in 3 days/nights… but there is a positive, they will feed me at lunch time and if I am at work, I will not be spending money!

    I get paid sometime between midnight – 4am, I am not a fan of getting paid on the last working day of the month. My last job used to pay every 28 days and this seemed to whizz around… those extra few days have almost killed me – I am so impatient!

    I have approx. £15.00 in my purse, so I plan on putting that into savings and then reduce my amount of £200.00 to £185.00 for food/household/petrol for the month. I will have a go at using only cash this month instead of using my card – I find I am much more aware of spending when I have to consider what is available and how long it needs to last me. I am salary paid and so my next payday will be 31.08.2017 – another full month [FONT=&quot]☹[/FONT]

    Black bin day tomorrow – I have managed to get rid of 2 bags worth of rubbish and feel a bit less cluttered (stuff not worthy of any selling sites). I need to downsize and consider listing some items for sale at some point… this money saving becomes a bit addictive overtime doesn’t it!!

    About to make a tuna pasta bake for my dinner [FONT=&quot]😊[/FONT]
  • louloubelle79louloubelle79 Forumite
    411 Posts
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    Hello from a fellow nurse, I am only 6 months into my 10 year MFW journey. Good luck 😉
  • edited 31 July 2017 at 6:59PM
    penny*pincher_2penny*pincher_2 Forumite
    69 Posts
    Third Anniversary 10 Posts Name Dropper
    edited 31 July 2017 at 6:59PM
    Hi louloubelle :hello: - thanks for stopping by. Well done for getting 6 months in, how have you found it? Do you have a diary? Always great to meet a fellow nurse :D

    So as the title suggests, I have made it through day 3 of NSD's. Over the past 2 months I have become very aware of my spending, it makes me realise how much money I have wasted in the past. I never used to think twice about stopping at the shops for things I really didn't need. Card purchases are too easy... it is not like spending money at all!!

    Payday is also here :T woohoo! I will do the 'money moving' tomorrow evening as I have several outgoings tomorrow. I have been paid a bit extra this month as I did some overtime last month... always nice!!

    It has been a very busy day at work :( I have a bit of a stress headache tonight after trying to please many people throughout the day... must be time for a Vodka :T :T :T :beer:
  • Managed another day not spending a penny! Going to spend some time tonight working out what money needs to go where and I have some boring bills to pay.

    Not such a great day overall... feeling a bit overwhelmed with work and the prospect of not meeting a target this week :(
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