The Four D's

alt80

@FootyFanDan Well done on the savings mate and moving that car on.

Sorry I've taken so long to get back to you mate. Been trying to stay away from the screens a bit of an evening. 

You've got plenty of time left yet mate. My broker has set up res mortgages for over-65s if they've got pension income. It depends on a number of factors and for res deals it needs to meet affordability criteria. I assume with some of the stuff you've said on here you've got some adverse on your record (sorry if I'm wrong or being presumptive) whilst you can still get a res mortgage the rates and lender choice will be much poorer, also likely to require a higher deposit. If the adverse has gone from your record when you're applying you'll be looking at high street rates. 

FootyFanDan

@alt80 yes my credit is wrecked - although the repair work on it is gradually working. I think I just figured once I had got myself into debt through being reckless it didn't matter because I didn't want an house of my own and I didn't want new finance. My view in regards to that changed drastically once the little one was here and when I moved to where I currently am now, in theory I am hoping that if we are here long enough when my landlord comes to sell which at some point he will then we could offer to buy this place. I think living where we are now is ideal its a really nice street and a really decent area for the little one to grow up in. The worry I have with renting is having to uplift everything if landlords circumstances were to change, but as it is we are quite settled. I think we are probably talking two years before we would be moving forward with buying, by that time my credit report will be cleared and we will have a decent deposit.

FootyFanDan

Hey All, 

Nothing really much to report, just ticking along at the moment. Lovely laying of snow around us today which makes me glad I am tucked up nice and warm and not out driving! I successfully managed to fix the washing machine and while it probably at some needs looking at again for the moment we have a fully functioning machine again for £13.99 rather than purchasing a brand new one. 

Work wise everything going along nicely and my replacement is ready to join so the plan is for me to start my new hours 1st February. I am currently mixing my new and old role which isn't ideal but is not something I have to deal with for much longer.

I have done a bit of playing around in YNAB with budgets and decided to create a secondary budget based around my own personal spends, while once our personal spends come out of joint account they no longer impact the family budget, there is quite a few wish lists and stuff I pay for so I figured setting up a budget for personal spends in YNAB was best way to do it. I hope doing this means that I can ensure I get my wish items easily budgeted over time and I can see these accumulating in budget and adjust as I go.

Not really much planned for rest of the day, I plan to do a little tidying and then we also have a new bed for the little one to put up. We have always had trouble with her sleeping in her own room (mainly through our own downfalls) but now she is settled properly so we got her a proper bed to go in now. She is excited to sleep in her own room properly now so that for us makes the new purchase worth it - and we didn't have to stretch ourselves to get it as we had been putting bits away towards it. Hope everyone is keeping safe

alt80

Sounds like you’re getting there re the credit record and moving towards your deposit. Are you really sure LL wants to sell? I had a tenant that was pinning his hopes on me selling to them not a !!!!!! chance at price they offered haha, most will for right deal but has to be right. He’s got income producing asset right now and would have to find another so needs to be right price iyswim. Alternatively looking to dispose because work needs doing and not his strategy. Be careful mate plenty of houses out there that would be perfect for you I’m sure don’t get fixated on buying house you rent.

how much you looking to spend?

hope daughter slept well.

Personal budget sounds interesting need one of those for AM fund. 😆 

mark55man

Yes your house is special, but not that special and a local move from rented to owned wouldn't be too disruptive for kids or your future social life. 

You have some advantages with your LL, in that there would be no estate agent fees so you a slight edge, plus if you leave and he keeps it then he has the risk of a new tenant.  BUt that's not a huge deal - maybe unless your LL is looking to get out of the game - then literally he has no incentive to sell as any rent he gives up, he will have to buy back in the market - then he will have to get a new tenant, plus a new property, plus 2 lots of moving fees.  so doesn't sound like a normal transaction    

FootyFanDan

@alt80 @mark55man Thank you both for comments. I certainly am not putting all eggs in one basket for sure and tbf there is elements of renting I love. A boiler in this place was replaced at the landlords expense, in my current situation no way on earth I could have footed the cost of that. We have been here now 5 years so feel settled, but agree there is probably plenty of other places that we would settle well in too. The landlord has this house purely as a bit of a nest egg to secure his kids future and I guess while ever we are here the mortgage he has is been paid for by us! Tbf we pay way less than market value for similar places so have a pretty good deal at present. There is house out there in our area that seem to be a lot more money for lot less house. While I think the house is decent there is plenty out there better - I think the area we are in makes it better - its a nice quiet area in a village that is just good for us. We also have good links to other areas. The only element of renting I don't like is the constant thought of worry about not having anywhere to live and having to keep up-rooting but so far we have been lucky with renting so maybe I am worrying over nothing. Our 1st place together we had four years and we choose to leave not the LL - this place we have been in 5 years.

@alt80 re future price we would look to spend - prices round here vary from 80k all the way through to new developments at 250l haha - we would probably once partner gets back into work once this bloody thing goes and we have some level of normality fall somewhere in between this although probably not much more over 110k but that certainly depends on a lot.

FootyFanDan

Morning All, 

Last of my days off today, due to having to cover an extra shift - this did mean I got Xmas day off though so a sacrifice worth making for sure. Although going from working tomorrow on days to then a set of nights from Sunday is going to be fun lol. I have eventually managed to sort out the internet having dug my heel in slightly. Whilst this hasn't gone down in price originally they wanted me to pay a lot more for my current speed or the same price for less speed. Eventually settled on same price as I pay now for the same service I get now. So no money saving there but not any real impact on the budget.

Still plenty of snow around here, which I am hoping kindly disappears before an early morning drive to work haha. Hope everyone has a good day 

alt80

Sorry I didn’t respond mate. Wasn’t in the best frame of mind and missed your post. 

£110k - should be achievable on £15k savings mate. 10% dep/ assoc fees. Fewer 90LTVs out there right now and the rates are higher. Depending on how long it’ll take you to save your dep there may be 95LTV options/ lower rate 90LTV options offered as incentive to FTBs. Worst case you’re looking at an 85LTV so will need pushing £20k for dep/ assoc fees. Another option have you considered a live in flip - spend a lot less, refurb, sell and repeat until you’re where you want to be. It’s 100 doable, until I bought my res home, I lived in flip projects. Bought my first flat at 21 on a 100LTV back when you could. Current house value £625k at c45LTV, equity purely built through profit/ capital appreciation and capital repayment (was on i/o mortgage for some of the time so that’s not the bulk of the equity tbh). Would be 35LTV had I not remo’d to cover refurb costs though tbh would have probably taken some equity for BTLs instead but that’s moot. Point is you can 100 climb the ladder through live in flips.

Good news re internet. I find the providers give a good deal for the initial term then hike the price and no incentive to stay, usually get a better deal switching.

No snow in NG - we don’t tend to get snow that sticks around for long when we do get it tbh.

FootyFanDan

alt80 said:

Sorry I didn’t respond mate. Wasn’t in the best frame of mind and missed your post. 

£110k - should be achievable on £15k savings mate. 10% dep/ assoc fees. Fewer 90LTVs out there right now and the rates are higher. Depending on how long it’ll take you to save your dep there may be 95LTV options/ lower rate 90LTV options offered as incentive to FTBs. Worst case you’re looking at an 85LTV so will need pushing £20k for dep/ assoc fees. Another option have you considered a live in flip - spend a lot less, refurb, sell and repeat until you’re where you want to be. It’s 100 doable, until I bought my res home, I lived in flip projects. Bought my first flat at 21 on a 100LTV back when you could. Current house value £625k at c45LTV, equity purely built through profit/ capital appreciation and capital repayment (was on i/o mortgage for some of the time so that’s not the bulk of the equity tbh). Would be 35LTV had I not remo’d to cover refurb costs though tbh would have probably taken some equity for BTLs instead but that’s moot. Point is you can 100 climb the ladder through live in flips.

Good news re internet. I find the providers give a good deal for the initial term then hike the price and no incentive to stay, usually get a better deal switching.

No snow in NG - we don’t tend to get snow that sticks around for long when we do get it tbh.

Sorry to read of your frame of mind mate, following in the background and willing you on.

It is weird tbh even as recently as Jan last year if someone said you need to save 15k I would have been like no way could I do it and while lockdown as helped financially I genuinely believe if I put my focus into that then it would be totally do-able even living a normal life after this stuff goes away!. I currently have an help to buy isa which as about £500 in it - although I got it purely due to deadline that was approaching at the time rather than it been a well thought out choice (which I get in hindsight isn't always the best way). The plan this year....if everything would kindly stop breaking haha is to keep topping up that regularly.

alt80

Thanks mate. Can’t spend, on the chang all the more. I’m a !!!!!! idiot don’t deserve to have a family know that much.

Know I’m the last person to be advising anyone on savings mate and feel free to tell me to !!!!!! as you’re well aware of my financial choices lol. However I’ll be a hypocrite can’t be any worse than admitting to being a cokehead lol. I think you can break this down - you’ve already started the first step by reducing your outgoings - what sort of surplus do you have at the end of the month discounting the debt payments (as this will be gone). Have a look for other savings - post an SOA up on here, people are generally helpful. You’ll get the judgy ones who live on rice and beans and live like saints but lots of sensible suggestions too. I don’t know what you earn net - gross waste of !!!!!! time to actually work anything out. Nothing truer than T/O is vanity, profit is sanity 100 true re gross/ net income too imo as that’s what you’ve got to deal with - for purpose of this it doesn’t matter if you’ve got some great pension waiting for you or whatever that’s a good idea to sacrifice your monthly income, you’re interested in the monthly day-to-day here. I’d work out your net income and what it is on a monthly/ yearly basis. Likewise expenses - I’m saying set the yearly up as some expenses fit less neatly into a monthly figure imo. You may have got all this sorted from the debt payments so already know what’s left/ isn’t.
 
You’re not going to need a lot coming in to get a sub£100k mortgage so affordability shouldn’t be an issue. However, once you’ve made all your savings, you can start to think about increasing your income. Obvious one here is the wife - you said on mine she was wanting to return to work - what’s her profession? Is it something she can do from home/ part time for a while whilst you get used to things.

Worth breaking it down iirc your goal to get on the ladder is 2 years. £15k/ 2 = £7.5k/y = £625/m. 100% achievable from a part time role for the wife mate easily. You’re living within your means and paying debts off now so you’re going to have some surplus when the debts gone - up to you if you choose to spend the surplus on lifestyle or cut the time scale of the property purchase down.

Sorry if any of that is patronising, really not meant like that just sometimes I know it’s hard to see the wood for the trees iyswim.