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

LadyWithAPlan · 22 October 2023 at 11:08PM

Thanks for all the feedback all

@LeighofMar your room looks great! thanks for this - I spent an hour yesterday moving my bathroom mirror into various positions in my current bedroom which loses direct light after the morning, to see how it changes things. It does. I will have a think on bevelled mirrors.

SuperSecretSquirrel said:

Have to agree with the others, the downsides of the more expensive property should probably see it taken off the menu. The cheaper property has just the one issue that you've pointed out, and it may be possible to work around it. If not, you have the luxury of time and can keep looking until you find the right place for you. You have a huge amount of flexibility being single and moving from a rented place too, the next move probably won't be as simple, so try to get it as right as possible first time.

As for the irregular income, I would absolutely not be looking to pay the maximum deposit possible in your shoes (or anyone's shoes really, but especially yours). A solid savings balance can help you meet many months of mortgage payments without income. It might not be the absolute optimal path in terms of pounds and pence (the norm would see savings interest below mortgage interest, - your 12% sounds interesting but possibly risky?) but can be a price worth paying to limit stress and risk. I think we held back about 2 years worth of mortgage payments when we bought, and that was as a couple, both with regular monthly salary jobs. We we're a little over cautious, but have no regrets. Worked towards mortgage neutral, paid off lumps when we felt like it, and paid off in full very early, so the increased interest costs of a smaller deposit didn't actually materialise - we paid a bit more early on but a lot less later on!

I'd be seriously considering the cheaper place. If it can work for you, you'll be able to start off with a much smaller mortgage and a much higher savings balance. It would make the finances so much easier to deal with, you would be far better placed to deal with any shocks that might be heading our way.

@SuperSecretSquirrel tx for your detailed advice - 2 years of mortgage payments kept back - wow - I definitely will look at increasing my 6 month EF held back to maybe a year plus of mortgage payments/EF ... it would help with my stress and anxiety levels you are right there. Currently my house deposit is v comforting

I am thinking hard on the £375k property as you suggested, the lower commitment is v attractive. - I need to be sure that I will want to stay there for 5 years plus really - my FTB advantage is useful and I dont want to waste it - up to £425k

I think you, @Karmacat @themadvix are all correct - the £475k much as I do love the light and the coolness of it, those stairs though given how much I travel and the weight of my suitcases - it would be a monthly OMG - though I would keep fit.. so its off the table. Plus as squirrel and @beanielou says £375k is much more able to get paid down than £475k.
@South_coast is no doubt correct about me checking leases etc - the £375k one is share of freehold which is also better - the 375k one is 20% smaller than the £475k
I think I need to look more and not rush in

£159/£200 grocery + £17.50/74.51 bulk - not counting my business travel food as they will give me per diem to cover -
After being away last week in Europe which included a trip to the local Lid* to stock up the apartment

I was home for less than 2 days before off to see family for a few days. I did stock up my fridge and freezer a little so it is not empty on my return.
I may also be off on another work trip end Oct - so lots of travel, I feel like I am hardly here at present. I have been away Aug, Sept, Oct and now Nov likely so it takes me time to resettle.

GYM this week 1/7 - however LOTS of walking Monday I walked over 25k steps, and tues/wed were over 20k each so .
I was away Sun- Thurs this week and Thurs was my classes then off out to see a friend in Soho for a bday - spent £41 on a bottle of wine and some crisps as my contribution - I had to walk partially home in torrential rain from the bus stop - Friday I felt awful but largely exhaustion related. I rustled up some frozen pork mince and veg and made a pork and cannelloni bean stew thing that worked well with loads frozen veg in.
I popped for a swim Sat morning as I had hoped the swim made my continued headache better which it did -

NSD are terrible - my portion of family dinner bill was £130 today - split between 2 though more of us there - I had a 20% voucher as I am a shareholder. Nice lunch though but though I had a large entertainment pot this month I have now blown through it. I keep using my current acct float to cover my excess spending which does not really work well. This is why I am slowing down my savings.
I still havent done YNAB - largely as the thought of reconciling etc seems a hassle but easy to access EOM spending reports would be great

Oct I spent £210 on clothes - on credit card - only had £60 in my clothing pot .used £20 from my WTH pot as well.. I dont regret my purchases but it means it comes off savings also as I never run a balance on a cc

Minimalism game - 21/21 yesterday - but 0/22 today I found some more receipts in my study Saturday so I processed them on the train - which was great. I need to file taxes etc so good I am getting through this. I am however away now til Wed so only declutter I can do will be at my parents house.

New phone upgrade - my iphone 12 pro which i bought in Feb 2nd hand - the battery is wearing down too quick battery wise suddently - still over 83% apparently though - its a real issue when one is travelling and I want to hotspot, work whilst travelling and i had 10% charge I was nursing at 2am coming from the airport Wed night after a delayed flight (despite having a mobile battery charging unit and also having being plugged in earlier, I need to upgrade my phone sooner rather than later - it can go through as a legitimate work expense as i need a great battery for work. I cant be coming home late at night with no battery as happened also Thursday at 2am and unable to order an uber

I am all apple though inc macbook and watch so looking at phones battery life best ones - its the iphone 14 pro max or the 15pro or plus - I need 256g - so I am not switching back to Andriod much as I think the phones are better value - my apple watch needs an iphone to work.

I can get £320-£345 from selling my current iphone which I bought 8 months ago so we are talking £700 on top to upgrade. ARGH.
I am on sim only - I normally buy phones outright - but the current deals seems to be £1200 for 2 years including decent mobile data so £50 a month. I currently pay £13 a month in contract til Feb I think as well.

I will look at the student deals on offer, plus contact my current provider on deals.
I am probably off to the US next week or so so maybe look at cost in dollars $1099 - so £904 at current forex vs uk price £1099 for iphone 15 pro 256g so £205 difference pretty good. Plus £340 back via Music Magp** so £560 cost and I could stay on my current mobile deal.

I assume if any issues from a USA bought Apple iphone it is still covered in the UK? Anyone know?

. I really dont want to be upgrading like this whilst house hunting but this battery life is causing work issues, making me less efficient and it feels unsafe.

themadvix · 23 October 2023 at 7:45AM

Why don’t you get the battery replaced? Much cheaper than a new phone! Or if you do have to buy another one, use Back Market or Music Magpie - you can get virtually brand new phones for a fraction of the price.

TallGirl · 23 October 2023 at 8:51AM

Sounds nasty about the phone I would also vote to get a new battery or if it is still under warranty as you only got in the February it should have lasted longer. I have not found that much difference on having the newest model and I was told the features on the Pro are really so small it does not warrant the price difference. I have the 14 plus currently and I am very happy with it as it is easier to see with my eyes.

Re the flats sounds like you need to keep looking but some good observations etc and also thinking long term as it is so expensive to move. Shame you have to live in London as you would get so much more for your money everywhere else almost. Stairs are a killer with suitcases we had 5 flights with no lift it was awful even if it kept us fit. We found we rarely bothered to go outside which was also really bad. Once inside we just stayed in.

Debsnewbudget · 23 October 2023 at 8:56AM

I bought my iphone and my ipad on my trip to USA nearly 5 years ago. As you say, they are a lot cheaper. I recently had to take my ipad into the local Manchester shop and all went well. TBH I had forgotten I had bought them out of the country, so never even thought of there being a problem with service….

LadyWithAPlan · 23 October 2023 at 9:34AM

themadvix said:

Why don’t you get the battery replaced? Much cheaper than a new phone! Or if you do have to buy another one, use Back Market or Music Magpie - you can get virtually brand new phones for a fraction of the price.

Last time I had a battery replaced the phone kept overheating and then died so never done that again
I did take a extra battery pack but it didn’t help that much - still ran out by end of day

@TallGirl 5 flights no lift that will keep you fit !

I am thinking of my heavy suitcases or when I do a side hustle job - often loads of gear - plus the stairs 4 of 6 are narrow windy ones so extra difficult to traverse with cases

my current phone 12 pro was second hand so wanting to get new this time for efficiency of battery - looking at detailed reviews on testing top 4 phones for battery life (ignoring android) are the iPhone 15 pro (& the plus) and iPhone 14 pro max - I am thus comparing the 3

I may look at 14 pro max then but 15 pro is new kind of battery tech I gather v the 14 and is faster charging and a larger battery pack.

Alternate otherwise is buy a second phone to carry with me .and have a cheap 2nd sim . I used to carry my old Huawei as well but battery life is not great as it’s v old.

It’s not good for the environment or our pockets with replacing phones for battery life .

I am aware I get more money for my 12 pro whilst I have over 80% battery capacity - currently 80% so time pressure a bit

@Debsnewbudget that’s great to know - as online quick search suggests warranty is not valid outside country of origin
I think if work sends me to the US next month that’s my best solution

I don’t like upgrading to newest phone - I have had second hand phones from back market etc for years but this battery issue is slowing down my productivity whilst travelling and also feels unsafe after long days in places I don’t know

I have £120 in my pot for future tech saved already, plus would sell old one so that’s an additional £440 to find if I buy one in the States

LadyWithAPlan · 23 October 2023 at 4:02PM

Cashback payout £42.08 from home insurance and b**ts

So I have withdrawn and rounded up to £50 into premium bonds. Agent Millionaire and I will be planning my cash home purchase fingers crossed soon - is it sad I know what I'd do with it already having never won - I would back fill up my sipp as much as possible to my earnings and buy a home cash

I added some excess to my sipp £78.18 - from Sept MB winnings - I was really up last week on casino but bad down a bit - still think will have a good month - I only add up at the end of each month.

OCT savings £570.51/£1132.26 + SIPP £353.18

The new aim is to save the minimum each month excess that a mortgage cost would bring so either save an extra £450 per month on a £250k mortgage or £850 per month on a £350k. Of course if I bought a flat I would not have spent £210 on clothes this month but I am going to aim for it on my current income.

Looking at my Van sipp + isa they both down again this month . Not worried on the sipp but £22k of my hse deposit is in the s&s isa... I cant do much though as I can only have one cash isa + I have the help to buy isa and I earn way over the £1000 or £500 interest earnings limit. All extra house savings at present going into prem bonds. If I have not bought by April 6th I will get a cash isa as h2b will be full to its brim on the govt uplift.

I do have some slush running around in various banks but as always I need a float in case companies dont pay me by the 1st when my rent goes out.
I am still owed loads and have a call tomorrow where I will discuss me getting that paid down.

Flat - the EA called me as both flats are with one agent and said both properties have had second viewings ... by which I think he means no offers as yet..

I am still thinking on the £375k one. (£475k with stairs with price is a no no) However lots of property gurus seem to think London property prices will continue to fall and one guy say he offering 10% less (and getting accepted) on asking price but that when they are cash buyers so - another local to the area I am looking estate agent said property prices had actually fallen by 10% in last 2 years. I think I need to buy for me though and my situation.
So more looking when I am back and sort out my taxes etc etc that all need doing.

Secret Squirrels advice on keeping a much larger EF than needed - he said he held back with his partner 2 years of mortgage payments rather than dumping all into the deposit and stressing seems incredibly wise given I am SE - it reduces my worry levels just to think about that - not sure I could do 2 years and still get to 25% deposit to hit lower rates so a years worth maybe. That 75% ltv is a must do target.

Hello Fr*** I have put off 2 more weeks as I am not sure re my travel plans.

Expensive week as big family birthday... happy to buy stuff and dinner - i can see Xmas looming though ..

LadyWithAPlan · 23 October 2023 at 6:01PM

OCT savings £630.51/£1132.26 (£60) + SIPP £413.18 (£60)

Had an invoice paid by a small company that looks impressive but largely travel expenses

Still awaiting more - which is earnings but have divided whats left after the expenses 20% sipp/ 20% house/ 20% tax so £60 a piece

Decided to split the house savings 50/50 s&s isa and premium bonds as did some prem binds earlier today
My tax all goes into prem bond savings

NSD not Monday - It would have been but I bought my parents some Vit D 10,000 iu tablets as they had run out. My dentist got me on them - just £10 for 365 days.

NSD not again Tues as bought 2 x cards and wrapping paper £12 (!) plus some YS WAITR*** and bottle of that very nice Giordosa rose prosecca - on offer for £7.99 - worth trying if you havent - brut good too but the rose is a favourite - only found in in Mr Waitr*s*

Minimalism Games 24/24 - I am at parents and got rid of loads of old tax paperwork today - so the declutter is happening

LadyWithAPlan · 26 October 2023 at 5:24PM

Back home today finally - nice to be home.
Spent £9.02 in sains ... but should get £2 cashback via shopmiu*\
I also spent £3 at parents local s/mkt on food

£169/£200 grocery + £17.50/74.51 bulk

I have blown through and exceeded by £50 or so my entertainment savings pot budget £300 for the month even with my travel this month - family dinners and various family/firends birthdays - hard to balance going out with savings in this area especially as I live alone. Now Halloween is looking at me - really should stay in and not spend but friend having a do - in an expensive private members club so .. drinks will be £15 a go.. so will spend at least £30 if not more. ...
Wed Ent spend £31 Thurs 15 (am due the other £15 back for the tix)

I do need to actually do a spending review - will wait til end Oct and do a 3 or 6 month one to get idea on my annual spending actual. I want to look at Fire again and start posting my FI % - its complicated as I dont yet own a home but will do a
% fire including house deposit and also excluding - so whats in SIPPS (probably should add EF in there)
I also will do a couple different amounts so a lean - bare basic bills ones (I have £12k a year exc house/rent) which may be too low and one including rent/or mortgage,

Mortgage broker Finally spoke to him and he is sending me a form, he was impressed by my savings, deposit and help to buy - I think he was shocked at my discipline to oay in £200 a month since 2019

, He is going to look again and see what paperwork I need - I moved from SE to ltd company last year as I was over paying so much NI .. having a ltd company is so much cheaper but I kept thinking I needed to wait to buy...
The cheaper flat has now had offers on - but I think I need to wait to get this mortgage in principal in place - they charge £295 for work to get that as he said loads of paperwork then a further £295 on actual mortgage - he originally had said 2 years ago a £500 fee and then today on phone £395 x 2 but I queried the jump from 2 years ago ... so suddenly it was £295 x 2!
I am wondering though if the MIP falls expires before I use it if he would then charge me to get another one .. I need to check

I asked him re my Energy company issue - he said it should be ok, and also my MB bank acct - he said we just wont send that one - its a small % and not counted in income anyway

I am still thinking on the £375k flat - even with the darkness cos of the relative value, freehold and garden .. but I am not in a rush though I may regret not rushing into the deal...
I have to fill in a form then we can move forward on all - I am still in a 12 month time frame.. but will keep looking - I am going to look in east london by the river in 2 weeks as a friend lives there and loves it.

The broker is suggesting people do 2 year or 2 year trackers ... I think rates will stay here for a while - I cant see them moving much either way in the next 6 months - I may be very wrong - 5yr rates are cheaper of course...

I do think house prices are stagnant and may come down further - reading the Mortgage board on here it is sad and scary to read of those with huge jumps in interest rates or worse with IO mortgages looking at having to sell their homes when the mortgage runs out as they dont have the principal to repay ... I dont want to stress myself out so much.

Minimalist Game - target was 26/26 yesterday - I did before going to bed find about 26 bits inc pieces of old bills etc - so the game is useful for that. I do have the heavy lifting of unworn clothes, shoes handbags - I tend to regret getting rid of such but if I have never worn something .. I am planning to do a sewing and alteration free course in Jan
27 things today - I am about to go hunting for a few items ..., the easy wins are not there though - its more tough stuff now.. My vinte* idea will have to wait til I get back from travelling.

NSD Finally! (I think) but then nope ...
Though not for want of trying to spend.... I nearly bought 2 things at online auction inc a large Mad* mirror (I blame my fellow MSE;ers for making me think about mirrors to the light issues in the flat I like... I got outbid by both at the end and decided not to go higher.. Frugal win .. on my wants .. which the purchses were rather than needs. If I am buying a flat I need to stop with my wants for a much bigger want.

Then I got a call about confirming my travel plans next week -so booked all that I could have had a cheaper hotel and saved some but when I went to book the cheaper one honestly looked like an actual cell block and was nowhere to hang my clothes (!) so went for a nicer but still reasonably frugal one .. so in theory I could have spent less .. but some things are worth paying for.. and location is where I used to live so...

I then have bought 2 tix for a show on Saturday in London - I had cheap offer on them .. I saw it in Australia a few years ago but it was good and hope it will inspire me .. I didnt go out though tonight as worked til midnight... so saved there and now said I will not go out on Fri either as busy weekend ahead and need to get some work done.

Baby shower gifts
I have a baby shower for a lovely friend on Saturday so I have already bought a book 'Your Baby each week" that a few suggested in here which basically goes through the changes a baby goes through each week - some mse'ers said they loved reading it so that is already arrived - feeling v organised and was only £11 new.
There is also a gift list - no pressure - but the few things I have clicked on I cant then find and of course postage .... so I have a free quick facial tomorrow at John Le*is so I will look in their baby section - this is probably the last of my current friends to have a baby .. we are all getting older so !

Food I bought some YS free range pork mince yesterday so I made some heavily herbed meatballs with egg, red onion etc - quite delicious fried

Served with fried pak choi - I am on a mission to eat lots more greens daily and HG tomatoes (by my family) with GF buns and dijon mayo bought in Europe last week. Delicious

Further snacks included frozen berries and crisps... I am pleased I did a freezer shop Saturday before I left - I have 4 more days here at home before being off again so I will grab some food inc kale etc tomorrow - hopefully get to the gym as well.

Jus sat under my fabulous faux fur heated throw ,,, before getting a decent nights sleep