Tidying up the mess

BabyStepper

Thank you kitten 868, enthusiasticsaver and Moneywhizz for helping me with this. :A I can't thank you enough. I have been feeling very much on my own with it all, even though OH is joining in and agreeing with things, he only knows what I tell him and it's me who sits fretting every day over it and trying to make plans.

I agree that it all looks manageable when I see it written down like that. If I can keep my income up then 2019 could be a good year for repayments. I have just bagged another day's work per week. :j. It will likely build up in January from a few hours to a whole day. I'm so pleased. :)

Yes those interest paying parts need to go first. The Barclaycard is in OH's name, that's why I have that listed before Lloyds, to reduce OH's debt and make him more likely to be able to get a mortgage without my income. I'm not worried about not being able to pay the mortgage, I'm worried we will not be given another mortgage at the end of the fix due to not passing affordability checks. They would only take his wage into consideration and his promotion has been delayed so there is no chance now we could pass a check or apply elsewhere for a better mortgage. We are completely at the mercy of the TSB not doing checks, if they do, we are screwed completely, not only would my wage not be taken into account, I could be considered a dependent, making it all even worse. I could cry right now thinking about what might happen.

We do have the emergency fund in place, but it had taken a hit this month and needed a top up, so I have increased it further from £800 to £1,000. This is purely an attempt to try and alleviate my own anxiety and feel a bit safer.

Me and OH both walk to work so travel costs are minimal. I have work related travel expenses when I'm out and about but these all go through my business account. Travel costs associated with us going out come out of the going out budget. I possibly need to reconsider this though.

We're just not there yet wth a present fund. We have been scraping by for the last 6 months or so and there was no extra so I maybe need to think about that too. Presents have been cash flowed as we go, so all of the Christmas gifts/travel/celebrations need to come out of this month's wages. We also have a backlog of things to deal with that we had no money for before. The boiler needs to be serviced, we both need dentists visits, our oven doesn't work, the list is endless so not much will be overpaid this month. We're playing catch up so as not to let everything get in a state of disrepair.

The more I think of it, the more I realise it is the mortgage causing this anxiety. If there was anyone with experience of whether or not the TSB ask for affordability checks before offering a mortgage retention product, that might help, although I suspect it's different in every case. There's nothing I can do really except wait to see what happens, and keep trying to pay down the debt as fast as possible before then. We should know by February. This will be the longest 3 months of my life.

Thanks again for all of your help.

Moneywhizz

It definitely seems to be your fear of not getting a new mortgage that is causing you so much anxiety. According to the TSB website you will be offered another mortgage at their standard homeowner rate when your deal comes to an end. This means that worst case scenario your payments may increase, depending on what rate you have just now. It also says though that it is easy to switch to a new deal, which suggests that they do not do affordability or credit checks. You can always ask for a new deal and if you find that they want to do more checks you can withdraw and stay on the variable rate. Although not ideal, it does mean that you still have a mortgage and can continue to pay down the debts and work to increase your income until you are in a position to apply for a better mortgage. If you had mortgage arrears I could understand you being worried, but I think you are worrying needlessly. You should just accept that maybe paying a bit more for your mortgage temporarily is the price for going self employed and being much happier in your work. Then you can stop worrying and enjoy your work and your home and all the good things that you wrote about previously.

Moneywhizz

Just another point to reassure you. As long as you are making your payments and keeping to the terms of the mortgage contract a bank/building society cannot withdraw your mortgage. To force the sale of a house they have to go through the courts to get a repossession order. For someone keeping up their payments this is a non starter and wouldn't even be considered. You are worrying needlessly.

BabyStepper

I've been letting these reassurances sink in and I'm finally getting it. We can ask for a new deal, but will likely move to the Homeowner variable rate until either OH gets a wage increase or I've been self-employed for 3 years, whichever comes first. We can handle an increase in payments, an annoyance but not the end of the world. It's all ok. I also read a thread by someone on the mortgage board in a very similar position with self-employment and the TSB who is not stressed about it at all. Feel a bit foolish to be so worried, but never mind, I think I've calmed it now!

Went to visit OH's aunt today. She loved her tree and we had a good chat with her. She said she wants to give us some money in the next couple of weeks. OH doesn't think she actually has any (he didn't say that to her, obviously) but maybe a gesture of a couple of hundred pounds. Every little bit helps and I was so grateful even for the thought. OH thought she was looking better today too.

This evening I'm enjoying a bit of relief from the stress of it all. Our living room looks so good with the tree up, so peaceful. I'm looking forward to a family Christmas.

Thanks everyone. :A

Moneywhizz

Sounds like you are finally realising that your home is not at risk and you can relax and enjoy Christmas. Why not have another look at your budget and build in things that will make your debt journey a bit more bearable. Like I mentioned before you should have separate pots for presents, house maintenance, boiler etc. But the thing that would really benefit you both would be to have a set amount each for pocket money, to do with as you choose. You could take the entertainment £80, the clothes budget of £100 and add a bit to them so that you have say £150 each month to spend on whatever you want, whether that be clothes, going out, or even saving your own little pot. Once you have these things set as part of your monthly budgeting, anything extra that you earn could go to overpaying your debts. Might help to make paying off the debt a bit less stressful.

enthusiasticsaver

I really would not worry about the mortgage. If you don't move providers I see no reason why they would recheck affordability. You have been paying the mortgage with them ok and it is not like a new mortgage application as you aren't borrowing more.

katsu

I am not with TSB but I promise that at the end of the deal you will just go to some kind of Standard Variable Rate or whatever they call it. You took out a mortage for say 25 years - as long as you pay whatever the monthly repayment changes to as the rate changes, then that's fine.

We hit the end of a fixed rate period and just stayed on the SVR with our bank for years.

Good luck with clearing your debts.

BabyStepper

Thank you everyone. :A I've woken up today after the first good night's sleep in a long while. I really believe it's all going to be ok.

We went and did a weekly shop at Lidl yesterday and it came in around £30. I love that place, so cheap. We are trying to stick to the £200 food budget even over Christmas, and include wine and extra nibbles and things for when we have friends round. The challenge is on to make it work.

With DDs going out today we are in a position to colour in another section of our thermometer. :T Debts continue to go down, everything is in order.

I have my usual plan to walk to work and we are both taking packed lunches. I will have a chance to do some Christmas shopping so need to stick to the budget for that.

Everything is looking good today.

BabyStepper

Just a quick update to keep me on track.

The Christmas shopping is going well, all my gifts bought and slightly under budget. As usual, I always see things I need when I'm Christmas shopping so picked up a couple of bargains using my clothes budget. The final gift should arrive in the post today.

I'm planning to walk to work and back again today, and eat lunch at home. The shop from Lidl is lasting well.

I'm keeping my eyes on the budget, if it works this month then I think I can do anything.

BabyStepper

Another quick update.

The December budget is going well. All my shopping is done, OH just to buy a few bits for his family. We've both been on nights out, done on the cheap and within budget. Cash is there for more travel later in the month. Food budget is lasting well, everything is covered. Emergency fund intact.