Are we nearly there yet?

DebtFreeDuo

The little spends really do add up, especially when you don't keep track of them or just think 'oh I'll write it down later'.

Not so good on using the fuel but at least it will save you spending anything and you can get on with some uni work. Go and do 20 minutes and then reward yourself with 5 minutes on here and then repeat. I find little bursts really helps me.

Pauper1

I got lots of uni work done yesterday, thanks for your motivation DFD! And this morning we attempted shopping again, which (mostly) went to plan. I've rejigged the accounts and updated the standing orders as I moved money from the Christmas savings to cover the advent bits.

We've had three more responses on the settlement, and we're still at a 33% uptake. The second largest amount has agreed though, so that's a positive.

I'm obsessed with the idea of us owning our own house again. Everything I do is aiming for that.

It's started snowing again so I might take DS out for his first ever taste of snow! We need to pick up a parcel from the post office anyway, so will head there before it gets dark.

Pauper1

Snow literally turned to rain as I was typing

So instead I updated our total debts, taking off the two that have agreed to the settlement, and worked out that we've paid 58% of our debts in 3 years. Hopefully that will be 100% by Christmas!

Pauper1

I've depressed myself this afternoon. Seeing as we are close to being debt free now I started looking at the future.

Once things are settled next year it looks like we'd be able to save about £3500 a year, which I appreciate is a lot of money and we are lucky to be able to do that. By our target of 2021 we'd hopefully have about £19k, which would be enough for a 10% deposit on a house of the right sort of size for us. Perfect, right?!

Except the most we seem to be able to borrow is £118k, which is a shortfall of about £50k. If I look at houses around here for £137k (which is the mortgage + £19k savings), we could buy a 2 bed park home, a 1 bed flat or a 2 bed terrace in a bad part of town. (We will be 2 adults, 2 kids and 3 cats so ideally need a 3 bed anyway, and we sold our 2 bed flat to aim towards a house with a garden) WAA

I suppose we just have to keep plodding and hope that something changes - house prices drop, big change in income, some old great aunt that no one has ever heard of leaves us a farm etc

Pauper1

(I mean, we could live with my parents, save an extra £700 a month and have £52k in savings by 2021, but we don't talk about that)

Pauper1

Okay, so 5th post from me today (I know..!)

BUT

• I changed the mortgage term to 30 years, as we'd be 31 and 33 when we took it out so they'd probably accept that (and we could figure out overpayments I'm sure),
• and worked out a 1% per year increase in DH's salary (as that seems to be his average - although I am expecting/hoping for a promotion because he seems to be given more and more responsibility at the moment)
• plus added me in working part time again (as I hopefully would be)

AND it said we could borrow £161k which is a much nicer figure. Phew

redofromstart

I think longer borrowing periods seem to be normal now, and the calculations vary so widely between the banks. Is it worth looking at those government scheme things too?

DebtFreeDuo

Save as much as you can in a help to buy ISA which will help boost your savings by 25% (if you don't already), you will also earn some interest on your savings, hopefully the rate increases soon but a help to buy ISA offers a rate of 3.5%. As redo says longer borrowing terms are becoming the norm and that's not to say that you can't pay it back more quickly and then when/if you remortgage you can look at the term again. All you can do is save save save and try and work on increasing your income, do this and then see where you are in 2021.

Also I know £700 would be a huge amount to add to your savings by moving in with your parents and if its possible then great but for me I wouldn't like to move back home, I love my own space too much, add in a partner and another child and it could become very stressful.

Pauper1

redofromstart thank you, I did have a little look yesterday but the new builds that are big enough round here start from £255k which is just unobtainable, and the other one is just about a 5% instead of 10% deposit, which shouldn't be an issue for us.

DebtFreeDuo so many good ideas! I might be wrong but I thought the ISAs were for first time buyers? You're right about moving home and DS thinks the same. I wouldn't be going back to work until at least 2019 but that's two years of increased income I guess, which will definitely help with a higher mortgage offer.

I sent DH loads of numbers and figures yesterday and he hasn't even bothered to read it. He's really doing my head in at the moment. Hopefully that passes soon...

Pauper1

December MSE Goals

1. Have 10 NSDs
2. Make £50 (sales/PA/SB etc)
3. Meal plan every week
4. Replenish batch cooked freezer meals

December Personal Goals

1. Wrap the presents
2. Write cards in time to post!
3. Think up some free/cheap Christmassy things to do with DS
4. Clear out the "study" (cats' room)