TravelGirl84's DFD

enthusiasticsaver

There is no magic forecast with house prices. Even with Brexit there is no guarantee that house prices will rise or fall and it won't be uniform across the country. Also the uncertainty with Brexit has been and will be ongoing. There is no cliff edge date as no one is sure what the effect will be. Also, unless you are moving into rented any drop in house prices will affect the one you buy too.

If your HTB loan is interest free for another three years I don't get why it is crucial you do this now when you already have other high debt to repay. When you say you are trapped for another 2 years if you are not selling anyway you are still trapped. Trying to do everything at once may mean you actually don't achieve anything. Personally I would use these next three years to sort your finances out then think about either moving or sorting out the HTB depending on interest rates etc. You can get three year deals so it coincides with the end of the HTB interest free period.

TravelGirl84

Smythson wrote: »

If I'm understanding correctly, you have the option for another three years of interest free HTB loan before you will then begin paying interest (at a very low rate in comparison to credit card interest rates - if I recall?)

Even when you get to the stage of paying interest on the HTB, if you're paying interest of credit cards it's likely better for you to pay the cards off first.

I don't follow how you will lose out if the value of your house drops? HTB is a fixed percentage of your property value, so if anything - you want it to drop at the point you're able to pay it off..!

Get your SOA posted and the folks on here will be super helpful as always!

Hi Smythson

Thank you for popping over!

Currently my credit card is 0% and I would move this when it changes, however my loan is 3%.

With regards to the HTB, what I mean is that currently the value of my property has increased, so if I deal with it now, take on a bigger mortgage and pay back they government, they receive more than what I borrowed as their 20% cut and my mortgage goes up again to pay back the extra. However, I don't actually have that profit in the bank because I'm not moving yet. So if say in two years time I move, and the price has dropped back down, then I come out worse off because the government already have their 20% and obviously I wouldn't get the difference back. I don't know if I am making sense.

I will get my SOA up.

TravelGirl84

enthusiasticsaver wrote: »

There is no magic forecast with house prices. Even with Brexit there is no guarantee that house prices will rise or fall and it won't be uniform across the country. Also the uncertainty with Brexit has been and will be ongoing. There is no cliff edge date as no one is sure what the effect will be. Also, unless you are moving into rented any drop in house prices will affect the one you buy too.

If your HTB loan is interest free for another three years I don't get why it is crucial you do this now when you already have other high debt to repay. When you say you are trapped for another 2 years if you are not selling anyway you are still trapped. Trying to do everything at once may mean you actually don't achieve anything. Personally I would use these next three years to sort your finances out then think about either moving or sorting out the HTB depending on interest rates etc. You can get three year deals so it coincides with the end of the HTB interest free period.

You're completely right, there is no magic forecast, and if I am dealing with it over the next couple of years anyway then I see why it makes sense to keep hold of it and use that money to get my other debts down.

DebtFreeMonkey

Good luck with everything. I'm sure that if we both keep focused and disciplined, we'll get to our goals!

DebtFreeMonkey

Good luck with everything. I'm sure you'll get there. You have a goal and a focus, now it's just discipline and hard work. Well, that's what I tell myself, at least. Haha.

TravelGirl84

Alicia1804 wrote: »

Good luck with everything. I'm sure you'll get there. You have a goal and a focus, now it's just discipline and hard work. Well, that's what I tell myself, at least. Haha.

Hi Alicia!

Thank you! It is now definitely discipline and hard work, discipline being the hardest bit!

Do you have a diary? Would love to track your progress!

Thanks
TG

TravelGirl84

Bit of a mixed bag today. Took my pre-made freezer lunch to work after defrosting it overnight, but it was not good. It tasted fine, but the pasta had gone all grainy? Not sure if it's because it's gluten free pasta, maybe it doesn't freeze well. I couldn't eat it so ended up getting lunch at work, not sure how much it cost because I need to go back and pay for it. Means though that I will be chucking the other two portions I have in the freezer :mad:

On the plus side I received some clothing refunds today, the money my friend owed me and also £16 cashback :T

Signature updated.

TravelGirl84

Statement of Affairs and Personal Balance Sheet[/b]

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 2269.38
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2269.38

Monthly Expense Details
Mortgage................................ 334.6
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 76.85
Council tax............................. 73
Electricity............................. 30
Gas..................................... 0
Oil..................................... 0
Water rates............................. 25
Telephone (land line)................... 0
Mobile phone............................ 35
TV Licence.............................. 12.83
Satellite/Cable TV...................... 0
Internet Services....................... 22.01
Groceries etc. ......................... 240
Clothing................................ 0
Petrol/diesel........................... 260
Road tax................................ 0
Car Insurance........................... 47.64
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 22
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Buffer for bank......................... 25
Apple storage........................... 2.49
Amazon Prime............................ 7.99
Amazon Music............................ 7.99
Netflix................................. 5.99
Postcode Lottery........................ 10
Total monthly expenses.................. 1238.39


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 111000...(334.6)....1.39
Total secured & HP debts...... 111000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card 1..................4696.71...100.......0
Credit Card 2..................776.5.....16........0
Loan...........................25947.5...332.......3.05
Total unsecured debts..........31420.71..448.......-


Monthly Budget Summary
Total monthly income.................... 2,269.38
Expenses (including HP & secured debts). 1,238.39
Available for debt repayments........... 1,030.99
Monthly UNsecured debt repayments....... 448
Amount left after debt repayments....... 582.99

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -111,000
Total Unsecured debt.................... -31,420.71
Net Assets.............................. -142,420.71

Ok, so here is my SOA. I have a few points to note:

- I have only included here my actual incomings and bills, I haven't included anything that I should start saving towards on a monthly basis, such as ground rent, MOT/car service/Tax, birthdays etc. I did work this out earlier in the year but because of the money I was trying to save should I go ahead with the bigger mortgage (seriously considering otherwise), I was trying to put away as much as possible. I am thinking I should use the bigger budget spreadsheet and try to estimate in some way going forward. I did set up a bunch of pots to organise this but like I say I haven't got that far yet. (I have started a spending diary today).
- I need to cancel Apple Storage, I just need to check it won't wipe anything I need to keep.
- I am looking to cancel Amazon Prime which means Amazon Music will go up to £9.99, but I would still save £5 a month on this.
- The food section includes food, household and toiletries. I often go over so will be keeping an eye on this in my spending diary.
- The bank loan includes all of the interest because that's how it shows in my bank. Hopefully I can overpay and the interest amount will reduce.

enthusiasticsaver

Well done for doing the soa but as you say there are gaps. Nothing for entertainment, haircuts, holidays, presents, emergency savings, clothing and car maintenance. Groceries is high for one person. Those amazon prime and music could go and you get one of the free music apps with adverts. The postcode lottery could also be cancelled

I honestly cannot see how you will have the leeway to take on a bigger mortgage so I think I would knock this idea on the head now of taking out more borrowing to get rid of the HTB and leave it for either 2 or 3 years and really focus on getting rid of the debt so you are in a better position.

DebtFreeMonkey

Good on you for taking the time to write and share your SOA.

The first thing I noticed was your grocery bill it quite high for one. I know it's hard, and I'm doing a similar thing, but we can reduce it. I created a pantry spreadsheet listing everything I had and am trying to only buy what's needed in terms of fresh stuff and use what I have. Meal plans could help with that idea and sticking to the food part of your grocery budget.

Yes, like the person who's previously commented, I think doing away with the post code lottery would be a good idea, too.