Future Proofing my life: Deposit saving then MFW journey in under 13 years

Suffolk_lass

@edinburgher might know. He started the FIREside Chats thread about people saving for their future. I've tagged him. He's been a bit quiet lately but he knows stuff

LadyWithAPlan

Thanks @Suffolk_lass I will ask on his thread 

LadyWithAPlan

Sept 2
A definite planned spend day - hairdressers and supermarket shop. I did a PA and a Populis survey whilst at the hairdressers - very MSE... That £50 limit seems very far away, I have only done 7 points  so far.

The art piece...
The good/bad news is that piece of art I have been thinking about and working out if I can buy it `partly funded by excess birthday money I found out today it has sold elsewhere. I loved it but £500 even with  a deal.... I would have loved it forever but obviously not meant to be and my house deposit beckons.. a bit sad but I made a decision and it is a one-off so I cant go back.
So I now have an excess £118 in my new buy art pot (all birthday money) so not sure if to add this to the house savings or leave as my gift to myself fun money to buy myself a reward when I hit £80k.

I understand why everyone says to give yourself little treats and rewards along this long marathon... and I am only preparing for the starting line.

Ebay news - of my 8 items that went live yesterday - as I listed 7 new ones inspired by all your diaries -  I have one item (a barely used fragrance) that has had 3 offers on and already past the minimum bid - woohoo!

House buying advice
I also saw a friend for a coffee at hers (so free!). She also has a few rentals now and used to have a property company with her ex. She said I will know the right flat when I see it (as opposed to making one 'work' and  suggested ....

1) To consider from the very beginning on  getting a Mon to Fri tenant so I could breathe a bit at the start - I don't want a lodger full time.

2) so thus make sure I got a 2 bed that were both doubles, ideally with 2 bathrooms or an ensuite  even if I paid slightly more than I expect given the plan is to have at least 1 to 2 years with a M-F person

3) Consider getting an interest free mortgage. She is older than me and has no dependents so her view is why focus on paying it off. My take on this  however would be only as a way of playing the Mortgage Neutral game . I would still  save like crazy on the side, still pay  down the principal a bit  but a less than a standard repayment  and also use the fact that I am HR tax payer to also be able to load up my SIPP even faster and my ISA.  and when it came to the end of my fix(es) I  could keep chunking down the mortgage.
Not sure they will give me one but it also would mean I could breathe easier .. and having a m-f tenant they would cover the £600 ish  monthly interest,.

Any thoughts on this? I definitely have the discipline to save and budget and it might be more FIRE


Grocery Sept Challenge   £21.86/£170
I paid in cash as trying to avoid using the debit card as cash is more ouchy to spend. Popped to Aldi as I normally go to lidl.
Mainly veg, fruit coconut oil, peanut butter - no meat/fish as loads in the freezer and trying to eat it down  and of course 2 packs tortilla chips -
I am also tracking my actual foods I buy this month  in my phone on the back of a MSE suggestion.

Free Money £10.63/£130  - 

£10.63 PA pulled out just.

Ebay free money will happen

TT to balance to          £70,038/£100,000

Sept goals

Sept savings   £1036.96    Goal  £2818 pm

Free Money Sept £130 target   10.68/£130

Grocery challenge    21.86/£170

NSD   1/10

Gym    0/22

Ebay   0/£100 – 8 items listed - one def sold

Minimalism Game    1/1, 2/2

Programme   1/7 tasks

Part a - I need to finish the 2nd edit,  1/1 YES DONE 01/09
Part b - j add links and pics and possible last time spell check 0/1  Nothing done on this today 

Part a - will then need a final spell check  0/1
Part c - creating and checking the extras that are coming with it 0/1
part D - I will do once a and b are done - recording the audio to go with it all 0/1
Part E is getting all the set up /webpages/adds up and on going 0/1
Part  F - marketing it 0/1

themadvix

Having just applied for a mortgage through a broker, the lender wanted to see 3 months of personal current account statements into which our salaries were paid (as well as 3 months of my business bank account statements - I’m also a freelancer). They didn’t ask to see stuff from the many, many other current accounts we have! (Which includes one with bookie transfers as I occasionally do a bit of MBing.) If I’m honest, it wasn’t until after the application went in that I remembered about those transactions, but it fortunately didn’t seem to have an impact. Imagine it’s more about affordability and your overall credit score.

So if it’s not your main current account, I think you’ll be ok, although that was only with one lender. If you’re worried, that’s something your mortgage adviser can advise on. HTH!

LadyWithAPlan

Thanks @thermadvix I guess I can always show them  my main one that has invoices in and also my other other account as well that has pots galore in.

I have been taking my main account to close to flat as I transfer it  all in my pots  but I may rethink and move back over  a £2000 float in the current account just to make it nice for them to look at.

Good to hear your new plans are on the way. 

Suffolk_lass

We used to have a week-day lodger - he came to us after work Monday and stayed M, Tu, W, Th nights and went home from work Friday. He had exclusive use and I always cleaned and washed the linen and towels so it was more like a boutique hotel than digs. It really helped us. If the lodger rent is under a certain level it is tax free. 

LadyWithAPlan

@Suffolk_lass that's great to know it worked well for you 
 I will have to check Out the tax limit then. 

Grogged

On what mortgage to get, the answer is it depends...
100% security is the standard repayment mortgage.
If you're disciplined and comfortable that your investments will outperform the missing payments then go interest free.
Another alternative is a longer repayment mortgage and aim to invest the difference to repay when you retire. Just because you want to retire in X years doesn't mean your mortgage has to be the same.
Finally, you can mix and match. Presumably you'll be taking out a fixed term deal.
In that case you can switch after the deal ends to one that fits your position then.
You could maximise your investments today with interest only and then move to repayment.

LadyWithAPlan

Grogged said:

On what mortgage to get, the answer is it depends...
100% security is the standard repayment mortgage.
If you're disciplined and comfortable that your investments will outperform the missing payments then go interest free.
Another alternative is a longer repayment mortgage and aim to invest the difference to repay when you retire. Just because you want to retire in X years doesn't mean your mortgage has to be the same.
Finally, you can mix and match. Presumably you'll be taking out a fixed term deal.
In that case you can switch after the deal ends to one that fits your position then.
You could maximise your investments today with interest only and then move to repayment.

I am hitting the issue that cos of my age it will be a 18 or 23 year mortgage to 75.. I cant see me getting longer..I like your last suggestion, keep switching plans as I need  though I am thinking of a 5 year fix if possible at first given current rates,

I need to  get out there and actually find my new place, good thing I am looking in London and am flexible as to which borough, this is also the bad news as well  as there is a lot to look at. I need to watch more flat videos to get an idea!
 I do want to save up to that 80k mark first as well.

Ebay - my one item is currently bid up to £39 inc postage Nothing else has an offer on it.

NSD today so 2/10

happymum37

You sound ready to pounce. The right flat will be come just keep looking.  Good luck xxx