Will I lose my home?

MFWannabe

OP have you put the figures into a mortgage calculator to see what it will go up to next year based on 5% or above? So you have some idea of what payments you’ll be looking at? 

By the looks of your soa you’ll be fine especially if you can make some cutbacks now and pay car off by then 

NeverendingDMP

Just to check is that your total childcare cost and have have you looked into tax free childcare, any schemes with work or universal credit help towards childcare (might not get it but worth ten minutes on a calculator such as turn to you to check?)

fatbelly

NeverendingDMP said:

Just to check is that your total childcare cost and have have you looked into tax free childcare, any schemes with work or universal credit help towards childcare (might not get it but worth ten minutes on a calculator such as turn to you to check?)

https://benefits-calculator.turn2us.org.uk/

Always worth a check

fatbelly

MFWannabe said:

OP have you put the figures into a mortgage calculator to see what it will go up to next year based on 5% or above? So you have some idea of what payments you’ll be looking at?  

If your mortgage deal is ending in June 2024, it's worth looking at remortgaging options in Dec 2023. This is because you can lock in a new rate and switch when your current deal ends, avoiding an ERC.

If you're looking at a 5-year fix, you should probably budget for 5.5% - if you can do better then that's good

AdmittingDefeat

Hi again, 

Thanks for all the tips.

I already do tax-free childcare, and we’re with a childminder. Term time only contract as I don’t work summer holidays and it includes all meals Monday to Friday so already the cheapest I can make it. We’re south east so childcare is expensive around us!!

Phones are in contract so nothing we can do there (yet). 

TV is Now TV and Netflix, so we can cut those out if needed. 

Breakdown cover is with AA and £270 is the new renewal quote they’ve given- definitely going to look elsewhere to see that we can get it cheaper. 

Car is financed but I couldn’t remember the APR- but our last payment is Jan 2025 and the payments are fixed at 100 per month, will look and see if we can clear that sooner than then and if there will be any penalties for early repayment. 

The buildings and contents cover is altogether and was already the cheapest deal on price comparison site. 

Life insurance is for both of us and covers mortgage and enough to clear debts and then some left over. We are both overweight and my husband used to smoke so that made it more expensive when we took it out but we can look at finding a better deal for that and potentially just covering our mortgage. 

Car maintenance- I factored in service and MOT- we have a family friend who is a mechanic so we get it fairly cheap, I haven’t factored in any repair costs though. Husbands car is a company car so all repair costs are paid for by his company. Realistically I know I should think about things like tyres etc and put more away for that. 

I buy two items a month on prescription and know that it will be cheaper on the prepayment (£11 something a month rather than £19.30 so will sort that ASAP). 

Husband also gets commission- haven’t included it in his wage as it’s different every month but it can be anywhere between £100 and £600 a month- plan is to put some of that away in emergency fund and some to overpay debts. Also to leave a little for fun things!!

AdmittingDefeat

fatbelly said:

MFWannabe said:

OP have you put the figures into a mortgage calculator to see what it will go up to next year based on 5% or above? So you have some idea of what payments you’ll be looking at?  

If your mortgage deal is ending in June 2024, it's worth looking at remortgaging options in Dec 2023. This is because you can lock in a new rate and switch when your current deal ends, avoiding an ERC.

If you're looking at a 5-year fix, you should probably budget for 5.5% - if you can do better then that's good

At 5.5% it would be an extra £136 a month, but 5.5% seems low after everything I’ve seen in the news etc? 

MFWannabe

AdmittingDefeat said:

fatbelly said:

MFWannabe said:

OP have you put the figures into a mortgage calculator to see what it will go up to next year based on 5% or above? So you have some idea of what payments you’ll be looking at?  

If your mortgage deal is ending in June 2024, it's worth looking at remortgaging options in Dec 2023. This is because you can lock in a new rate and switch when your current deal ends, avoiding an ERC.

If you're looking at a 5-year fix, you should probably budget for 5.5% - if you can do better then that's good

At 5.5% it would be an extra £136 a month, but 5.5% seems low after everything I’ve seen in the news etc? 

That’s about the rate for current deals at the moment 
have you checked what rates your current lender is offering? I know you’re still fixed but it will give you some idea 

MFWannabe

AdmittingDefeat said:

Hi again, 

Thanks for all the tips.

I already do tax-free childcare, and we’re with a childminder. Term time only contract as I don’t work summer holidays and it includes all meals Monday to Friday so already the cheapest I can make it. We’re south east so childcare is expensive around us!!

Phones are in contract so nothing we can do there (yet). 

TV is Now TV and Netflix, so we can cut those out if needed. 

Breakdown cover is with AA and £270 is the new renewal quote they’ve given- definitely going to look elsewhere to see that we can get it cheaper. 

Car is financed but I couldn’t remember the APR- but our last payment is Jan 2025 and the payments are fixed at 100 per month, will look and see if we can clear that sooner than then and if there will be any penalties for early repayment. 

The buildings and contents cover is altogether and was already the cheapest deal on price comparison site. 

Life insurance is for both of us and covers mortgage and enough to clear debts and then some left over. We are both overweight and my husband used to smoke so that made it more expensive when we took it out but we can look at finding a better deal for that and potentially just covering our mortgage. 

Car maintenance- I factored in service and MOT- we have a family friend who is a mechanic so we get it fairly cheap, I haven’t factored in any repair costs though. Husbands car is a company car so all repair costs are paid for by his company. Realistically I know I should think about things like tyres etc and put more away for that. 

I buy two items a month on prescription and know that it will be cheaper on the prepayment (£11 something a month rather than £19.30 so will sort that ASAP). 

Husband also gets commission- haven’t included it in his wage as it’s different every month but it can be anywhere between £100 and £600 a month- plan is to put some of that away in emergency fund and some to overpay debts. Also to leave a little for fun things!!

AA breakdown cover is horrendous and a complete rip off! Check on a comparison site and see what you can get; mine is only £60 a year; full Uk and home cover 

AdmittingDefeat

MFWannabe said:

AdmittingDefeat said:

fatbelly said:

MFWannabe said:

OP have you put the figures into a mortgage calculator to see what it will go up to next year based on 5% or above? So you have some idea of what payments you’ll be looking at?  

If your mortgage deal is ending in June 2024, it's worth looking at remortgaging options in Dec 2023. This is because you can lock in a new rate and switch when your current deal ends, avoiding an ERC.

If you're looking at a 5-year fix, you should probably budget for 5.5% - if you can do better then that's good

At 5.5% it would be an extra £136 a month, but 5.5% seems low after everything I’ve seen in the news etc? 

That’s about the rate for current deals at the moment 
have you checked what rates your current lender is offering? I know you’re still fixed but it will give you some idea 

Good idea- will do that. 

AdmittingDefeat

MFWannabe said:

AdmittingDefeat said:

Hi again, 

Thanks for all the tips.

I already do tax-free childcare, and we’re with a childminder. Term time only contract as I don’t work summer holidays and it includes all meals Monday to Friday so already the cheapest I can make it. We’re south east so childcare is expensive around us!!

Phones are in contract so nothing we can do there (yet). 

TV is Now TV and Netflix, so we can cut those out if needed. 

Breakdown cover is with AA and £270 is the new renewal quote they’ve given- definitely going to look elsewhere to see that we can get it cheaper. 

Car is financed but I couldn’t remember the APR- but our last payment is Jan 2025 and the payments are fixed at 100 per month, will look and see if we can clear that sooner than then and if there will be any penalties for early repayment. 

The buildings and contents cover is altogether and was already the cheapest deal on price comparison site. 

Life insurance is for both of us and covers mortgage and enough to clear debts and then some left over. We are both overweight and my husband used to smoke so that made it more expensive when we took it out but we can look at finding a better deal for that and potentially just covering our mortgage. 

Car maintenance- I factored in service and MOT- we have a family friend who is a mechanic so we get it fairly cheap, I haven’t factored in any repair costs though. Husbands car is a company car so all repair costs are paid for by his company. Realistically I know I should think about things like tyres etc and put more away for that. 

I buy two items a month on prescription and know that it will be cheaper on the prepayment (£11 something a month rather than £19.30 so will sort that ASAP). 

Husband also gets commission- haven’t included it in his wage as it’s different every month but it can be anywhere between £100 and £600 a month- plan is to put some of that away in emergency fund and some to overpay debts. Also to leave a little for fun things!!

AA breakdown cover is horrendous and a complete rip off! Check on a comparison site and see what you can get; mine is only £60 a year; full Uk and home cover 

Do you need to pay any excess with that? And what is the waiting time for call outs like? I just worry that if we go with a less-known company (with probably fewer vans etc) that we could be waiting hours in the case of a breakdown?