My Journey to an exciting future!

Tryingtosave2020Tryingtosave2020 Forumite
1 Post
MoneySaving Newbie
Good Evening All,

I have been an avid reader of this forum for sometime however have always stopped short of creating my very own thread. I find so many of the stories inspiring!
A little context about me. I am a mid 30's man who is married to his childhood sweetheart, we have a 4 year old daughter and there are discussions in regards to trying for a second. I am so very lucky but there are at times I loose sight of this. 

I am a professional worker earning around 40K per year. I am educated to MA level after spending 10 years at the Open University in which I challenged so many pre-conceptions of myself and proved to myself that I had it in me to achieve academically. I loved my journey through the OU completing an undergraduate and two MA's before then attending Manchester Met to complete my professional qualification which was funded by the government. I am in the very fortunate position that I worked full time alongside my studies, paying off my tuition as I went. This has meant that I have no student debt. 
My wife is currently retraining and will be qualified in her position in 2 years. My wife has reduced her hours considerably to give her the time and space to focus on her MA. 
Whilst I have done much research into financial planning etc, I have learnt far more by reading the stories of others on here, so a huge thank you!

We are avid travelers and intend to continue travelling throughout our lives. Neither of us are interested in cars, we don't often go to the pub meaning our outgoings are relatively low. We do hover recognize that in the years to come we will need to move to a bigger home. However we are not prepared to become a slave to a mortgage. As a result it is our intention to try and pay down as much of the mortgage as possible in order for us to have lower monthly payments in a new property. I would like to point out that we are very fortunate to be on the property ladder, living in a 3 bedroomed, 3 floor, terraced townhouse. The home is around 8 years old. The home has offered us so much however the kitchen is minute and makes hosting friends very difficult (First world problems I know). 

Here are the finances (I am not taking my wife's salary into account as her priority is her studies and with a reduced salary, I don't wish for her to have to think bout budgeting more then she needs to - she is like me very sensible and other then student load she has no debts)

Income - £2370 per month (After Tax)
Mortgage - £360
Car - £0 paid off
Mobile Phone - £12.28
Life Insurance - £13.17
Home insurance - £18.25
Swimming (Daughters lessons) - £19.95
Car insurance - £21.96
Pet insurance - £50
Professional membership body - £5.75
National Trust - £10.75
Internet - £25
Top up wife's salary - £200
Surplus fund - to cover emergencies - £100
Council tax - £140 
Birthday / Christmas presents - £25
Personal spend / petrol - £197

The remaining - £1200 from this month will be used to make an overpayment on my mortgage. I am able to pay around £7600 per year without charges so once this limit is reached, I will place the money each month into a side account to eventually be used as a lump sum. I have made ad hoc overpayments on the mortgage in recent months however after making this plan I feel set in terms of the plan.

My remaining mortgage is - £74811 plus £42000 which is the 30% government loan (Help to buy) 
I have £2000 in savings (Emergency Fund) This had been £6500 however I paid off my car last month.
My wife has savings of around £10000 and earns around £12000, she pays for food and the utilities. Other then my wife's student loan, we have no credit card debts or outstanding finance payments. 
I have a Local Authority pension plan which I pay into monthly. My wife also has a pension. 
I am seeking to take on a second job in order to bump up the overpayments to around £1600 to £1800. 

I welcome on board any feedback or encouragement. My vision is for us in 3 years to be able to purchase a moderate size house with a smaller monthly payment in order for us to be able create opportunities to live life. 


Replies

  • ruby_eskimoruby_eskimo Forumite
    3.5K Posts
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
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    Congratulations on all you've achieved so far!  I know how difficult working and studying at the same time is so well done to you and your wife for persevering with it.  What happens to the HTB loan when you come to re-mortgage / move, is it rolled into your new mortgage?  Just interested as we managed to get the HTB guarantee for 10% of the purchase price if we stumped up 5%.  Those were the days when you could still get at 95% mortgage! 
    Emergency Fund - £5309.05 / £10,000 :: Total Mortgage OP - £3566.50
    LISA 2021 - £3199 :: NSD December - 0 / 20 :: Weight Loss: 33.4 / 58lbs :: Decluttering - 1177 / 2001 ⭐⭐⭐⭐⭐⭐⭐⭐🏅🏅
    Engaged 9th December 2010 :: Married 29th October 2015 :: Bought a House 13th January 2017
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