Finally admitting the truth!

Fireflyaway

I know this is not what you are asking so hope you don't mind my comment! If you and your boyfriend have different financial habits then between now and buying a house would be a great time to talk things through and decide how you will split / combine your finances when you get the house. Arguments about finance are so common so avoid that by planning in advance. Do an income and expenditure and see where you can cut back and make savings. Once you have paid your debts close the account of its all to easy just to go back in debt.

monetxchange

I agree with Fireflyaway. It’s always good to get things clear before you jump in, especially as you’ve said it didn’t work out financially when buying with a partner before. There’s many of us here that ended up with more debt due to money imbalances when in couples!

Kelsey95

Thanks @Fireflyaway and @monetxchange! 

I note your comments about us talking and agreeing finances before buying a house! We have agreed that everything will be split equally and the rest of our wages is our own to do what we please! He has however stated he does not want to buy a house until the majority of my debt is gone so the clock is ticking! 

Everyone’s advice so far has been extremely helpful though! And I feel a bit more confident that I can do this!  

monetxchange

You absolutely can do this. It just takes planning and overhauling your ideas on money management. When you do start splitting things with your partner, don't forget that you'll both need to pay into separate savings 'pots' for things that come up every so often - things like dentists, car insurance, MOTs, Christmas etc. It would also be good if you could share an account purely for things like eating out and groceries. Then maybe you could allocate a 'fun money' amount to each of you to do as you please with.

Also get a £1K minimum emergency fund in place (between you) just in case anything goes wrong with the property. My worry with the having your own money 'to do what you like with' might end up in one person frittering and the other taking on the bulk of the financial responsibility if there's ever a rainy day. Great to get all this clear at the start! If you're buying a property together, you're already hugely financially linked, so pooling money for outgoings isn't such a big leap.

Kelsey95

monetxchange said:

You absolutely can do this. It just takes planning and overhauling your ideas on money management. When you do start splitting things with your partner, don't forget that you'll both need to pay into separate savings 'pots' for things that come up every so often - things like dentists, car insurance, MOTs, Christmas etc. It would also be good if you could share an account purely for things like eating out and groceries. Then maybe you could allocate a 'fun money' amount to each of you to do as you please with.

Also get a £1K minimum emergency fund in place (between you) just in case anything goes wrong with the property. My worry with the having your own money 'to do what you like with' might end up in one person frittering and the other taking on the bulk of the financial responsibility if there's ever a rainy day. Great to get all this clear at the start! If you're buying a property together, you're already hugely financially linked, so pooling money for outgoings isn't such a big leap.

This is a very good idea! I know that as soon as this debt is clear I will feel so much better and won’t let myself get into this position again! 

He is a very good influence on me and I have cut my spending a lot! Most of my debt is from when I was 18-21 and just saw credit cards and overdrafts as free money! This was obviously very silly and I realise my mistakes now! 

I would like to be in a position where we have a large emergency fund which I think is an extremely good idea and will definitely speak to him about! We would have a joint account for all bills and expenses that we would both pay a set amount into - I guess we could have the savings account linked to this?? 

Bluebell90

Just popping in to say good luck you can do this! It sounds like you're in a good position already paying £750 per month off, with £5k in savings. I used to be a mortgage advisor (until very recently), and having no debts upon applying will certainly help the affordability element of the application, whereas having paid off debts and maintained payments throughout will have helped your credit rating! x

Kelsey95

Bluebell90 said:

Just popping in to say good luck you can do this! It sounds like you're in a good position already paying £750 per month off, with £5k in savings. I used to be a mortgage advisor (until very recently), and having no debts upon applying will certainly help the affordability element of the application, whereas having paid off debts and maintained payments throughout will have helped your credit rating! x

Thank you! This is what I’m hoping will seal the deal! Debt free and showing I had that paid off within a certain time period will increase my credit rating! X

monetxchange

In terms of emergency funds, it tends to be suggested you get £1K in place as a starter and then when you’re debt free, aim to have 3-6 months of wages saved just in case the worst happened and you couldn’t work.

In terms of savings accounts, I find Monzo good as a day to day spending account (separates it from your direct debits for bills account so that’s in no danger of being spent) and also because you can divide your savings into little “pots” so everything is allocated to a specific category - like I have one for car insurance, etc. It’s a great way to never overspend on one thing and find yourself short on another. My emergency fund is in a saver linked to my main bank account as I always think it’s good to have savings split across separate banks.

On_my_way

Get rid of all your debts by any means possible, use your savings, sell any stuff that has a value that you don't need/use. When you go for a mortgage savings are important but have no or little debt is more so.

middleclassbutpoor

monetxchange said:

In terms of emergency funds, it tends to be suggested you get £1K in place as a starter and then when you’re debt free, aim to have 3-6 months of wages saved just in case the worst happened and you couldn’t work.

I would say 3-6 months of expenses rather than wages. 
If you bring home £2k a month but your expenses once debt has cleared (except mortgage) are £1,500 then you need £4,500-£9,000  rather than £6,000-£12,000. 
Do I save 3 months or 6 months then?

I would tend to say 3 months is more for people that have 2 incomes coming in and have good income protection (sick pay/phi cover/long standing service) which if one was to be off or lose their job, it would provide protection.  I may go for more on a joint income if incomes are not broadly similar - i.e. one earning £12k and the other earning £30k, you may want to go for more incase the higher income earner loses their income for any reason.

6 months would be more for people that have less confidence in their income being protected (i.e. no sick pay, no phi cover and work for a company/in a role which feels less secure.  I would also say this is something you are likely to benefit from if you are on a sole income. 

PHI is private health insurance and usually pays you a % of your salary if you are unable to work due to ill health. 

The biggest consideration is what you feel comfortable with though.