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Best put on my big girl pants! my saving for a deposit diary

edited 13 July 2019 at 8:15PM in Mortgage-Free Wannabe
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  • edited 2 December 2017 at 6:44PM
    mumof3.12kindebtmumof3.12kindebt Forumite
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    edited 2 December 2017 at 6:44PM
    January aims have £2000 in total saved towards deposit . see below (amounts to add in January)
    £200 emergency fund
    £650 house extra
    £250 house 5%
    £50 car savings account
    £50 Xmas / birthdays


    this isnt including my owed holiday pay which should be around £200 according to my manager . my owed holiday will also go straight to savings. im trying to keep the savings to rounded numbers :rotfl:
    June 2017 £16,000 debt ~ Nov 2018 DEBT FREE
    June 2019 Homeowners ~ June 2019 mortgage £123,500.00
    July 2020 mortgage £117,500 ~ loan £12,000 ~ emergency fund £5000
  • mumof3.12kindebtmumof3.12kindebt Forumite
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    Anyone on here gone down the part buy route.
    It would mean we could move next year.

    Any advice. I welcome honestly please good and bad experiences
    June 2017 £16,000 debt ~ Nov 2018 DEBT FREE
    June 2019 Homeowners ~ June 2019 mortgage £123,500.00
    July 2020 mortgage £117,500 ~ loan £12,000 ~ emergency fund £5000
  • getmore4lessgetmore4less Forumite
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    Any advice. I welcome honestly please good and bad experiences

    Why are you borrowing money at 6.8% and saving at a lower rate?

    You might benefit from a full DFW style SOA.
  • mumof3.12kindebtmumof3.12kindebt Forumite
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    I am overpaying my loan. But ATM my loan is very affordable. On our income.
    We need to buy asap so ATM saving for a deposit is a priority.
    I understand we would be better off to pay the loan and then save up but we would then not be able to move for a minimum of 5 years if not longer. By continuing to pay my loan and save up we could buy and move alot sooner. We have outgrew our property and can afford a mortgage once we have the deposit. There are many that can't and surely us freeing up a property for people like that than waiting to be moved via the council and taking up another property that someone else can have is better than us staying here and someone else not being housed.
    My savings account is at 5% saving more than my loan amount each month. I can only put 250 a month in that one. My other savings accounts are at 2% .

    Basically yes we have debt. Yes I'm paying interest on the debt. But the maximum amount I owe including interest is the amount I posted.

    I'm paying 1100 interest in total. Even if I payed it off early I'm not going to save much maybe 500 pound if I'm lucky.
    June 2017 £16,000 debt ~ Nov 2018 DEBT FREE
    June 2019 Homeowners ~ June 2019 mortgage £123,500.00
    July 2020 mortgage £117,500 ~ loan £12,000 ~ emergency fund £5000
  • mumof3.12kindebtmumof3.12kindebt Forumite
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    Before I had the loan at 6.8%

    I had a credit card at 9.9% and a car finance at 13.9% hence why I consolidated . I also consolidated so we only had one money payment with fixed interest so we could save quicker.

    By December next year I'll owe around 8k in debt but may have more than that in savings if that happens we will consider paying the loan off early and continuing to Save for a deposit. But ATM my debt doesn't worry me. But what does is every month longer we are here is one less month I am making a mortgage repayment it's also one more month we are effectively throwing money away at a much higher amount.

    It's also another month we are having to live in a property where we are tight for space.

    I do understand why people would say to pay my loan first but I really would like to move before the baby needs to be in a bed. It's not so much I'd like to we have to we don't have room in the 2 bedrooms we have for a single bed for her once she has grown out of her toddler bed.

    Hence me asking for people's experiences on part buying as we would potentially be able to move in the next 12-18 months and possibly clear my loan with the left over we would have in savings as we wouldn't need such a substantial deposit. I hope I make sense. In what I'm trying to explain
    June 2017 £16,000 debt ~ Nov 2018 DEBT FREE
    June 2019 Homeowners ~ June 2019 mortgage £123,500.00
    July 2020 mortgage £117,500 ~ loan £12,000 ~ emergency fund £5000
  • mumof3.12kindebtmumof3.12kindebt Forumite
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    I'm going to sit down tonight and rework everything out. If we were to clear the loan and then buy. Possible using the part buy scheme and then the standard 20% deposit I'll give an update with the outcomes for advice
    June 2017 £16,000 debt ~ Nov 2018 DEBT FREE
    June 2019 Homeowners ~ June 2019 mortgage £123,500.00
    July 2020 mortgage £117,500 ~ loan £12,000 ~ emergency fund £5000
  • We part bought in September. The issue is that they do take in account debt repayments to determine if you could afford the mortgage and rent.
    If space is the issue, you might want to declutter (I found the magic of tidying up by Marie Kondo an eye opener) and look online at space saving ideas. Some are very cheap to implement but really help. But we only started making headway in making space once we realised we had to get rid of a lot of our stuff. There’s a few blogs about tiny living, which are quite extreme but are very clever in their use of space.
    You’ll get a much better deal from the bank if you pay off your debt first and save as much as you can. You would pay off all your debt in a year if you put the £1000/month you’re saving in debt repayment. (Our toddler still sleeps in our bed, so children don’t automatically need a bigger bed when they’re young.)
    09/17 Shared Ownership 50% share - Mortgage £77500 Original MFW 2052 :eek:
    17/18 OP £7700 18/19 OP £7000
  • getmore4lessgetmore4less Forumite
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    with that goal you should have taken the loan for longer with a lower payment and not overpaying, you save the deposit sooner.
  • mumof3.12kindebtmumof3.12kindebt Forumite
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    My loan repayment is 196 a month. Which is actually less than my car finance alone is.

    Thankyou for the advice both. We have got rid of most of the stuff we no longer use or need. Put it this way our place is so small we don't even have room for a small table to eat dinner at which really makes me sad :( .

    The reason I took the loan at the amount I did is so we had 1k a month or thereabouts surplus to put into savings. Effectively giving us 12k in one year saved or 24k in 2 years.

    Part buy we would be looking at a .£3500 deposit. And 12 months direct debits will bring my loan down by £2300 or there abouts . That would leave around 9000 of the loan so effectively in 16 ish months I could pay the loan off and move using the part buy scheme

    Moving using a 20% deposit we would need 24k or thereabouts so it would take us around 36 months minimum with also clearing the loan. I suppose I was focused on the saving for a house because as much as I love the area. And as much as we are trying to make it work living here is really stressing me out. We have no wardrobes becUse we don't have the room. We all have minimal clothes and possessions now as I have sold and skipped 95% of it.

    I just want to be able to sit and have a meal together as a family and want my oldest son to have some space to be able to do his homework without the little ones distracting him or annoying him. I just wanted to move as soon as possible. To give us these 2 basic things. I'm sorry I guess at 25 Im nieve. I thought I was doing what was best given our situation ATM.
    I can get a mortgage both part buy with the rent top up or a 20% deposit for not much more than we pay now in rent and I do pay full rent and council tax here. I've already had a dip only 3 months ago which is why We won't be approaching the bank again until needed.
    June 2017 £16,000 debt ~ Nov 2018 DEBT FREE
    June 2019 Homeowners ~ June 2019 mortgage £123,500.00
    July 2020 mortgage £117,500 ~ loan £12,000 ~ emergency fund £5000
  • mumof3.12kindebtmumof3.12kindebt Forumite
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    That my car finance was I meant sorry
    June 2017 £16,000 debt ~ Nov 2018 DEBT FREE
    June 2019 Homeowners ~ June 2019 mortgage £123,500.00
    July 2020 mortgage £117,500 ~ loan £12,000 ~ emergency fund £5000
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