Moving forward and upwards

MovingForwards · 15 November 2019 at 8:08PM

I decided today to bite the bullet and start a saving for a deposit diary.

Moving away from my other diary as that served its purpose for that part of my life. Its now time to focus on my next goal, buying my own home, for that I need a 15% deposit.

For nearly three years I've been saving my pennies, saving chunks of my wages, locking money away into fixed rate bonds and repeating the process each January. Updating spreadsheets is part of my daily life, as I can see how things are progressing each month and how things changed since the previous year.

Along this journey I've had to shell out rental deposit, moving costs, furnishing a rental, quitting a well paid job, temping part-time for most of this year before recently securing my current role, buying a car, repairs etc.

On top of that I've handled my own divorce, which was granted this week, started a part-time OU degree, having a complete career change and I am looking to my future.

I've been continuously saving each payday, had nice PPI payouts, clearing aged debts, been rebuilding my credit history and generally getting on with my new life.

For over a year I've had my mortgage broker and am working closely with him, checking I'm on the right track and drop random emails to him with updates and queries. To his credit, he is very helpful!

I'm now in a position to put half my wages away each month into my mortgage savings accounts (MSA's), with that my deposit increases and it allows me to increase the maximum property price I look at by nearly £5k, but as with everyone I'm restricted to an absolute upper limit due to my income.

If I think of it like steps, the absolute highest step is 10th away from the bottom, for that I am looking at 11 pay days or 11 months as I can't quite reach the amount required each month to move up a step; I'm always just a tiny bit short and still want the option of going out occasionally, getting a hair cut etc, but I do allow myself a chippy night once a month.

I could keep saving after reaching the top, but I have no interest in doing so, I don't want to keep paying out dead money each month in rent as that could be going on my own home.

Step I'm currently standing on:

Step 1 - I'm at 15% of the lowest price I can buy at.

savingwannabe · 15 November 2019 at 9:15PM

Moving Forwards, Welcome to the thread:beer::money::D:T

You've already got a significant sum. We are all saving too and hope to enjoy the journey with you.:j:money::money::money::money::money:

JennyJukes · 15 November 2019 at 10:47PM

Welcome MovingForwards - you seem motivated and have come so far already, I know you can do it!

MovingForwards · 16 November 2019 at 12:27PM

Thank you for the encouragement

To try and give a little context when I said I've no interest in carrying on saving when I reach step 10, this is due to me accepting I cannot afford to buy in the Scottish city I've made my home, therefore I do not see the point in delaying buying (I can't realistically save £100k, have no inheritance on the cards, don't waste money on the lotto etc).

I have expanded my search to upto 30 miles N, S, E and W from where I work, no more than 90 minutes commute with a combination of reliable / frequent buses / trains.

Step 1 - I can afford to buy a 3 bed maisonette, which I have viewed, do like and would put an offer on.

Difficulty is another one is on the market, slightly cheaper, but in move-in condition; it's also under the minimum value my proposed lender will lend on (£75k)

it's casting doubt as to whether the other one would then fall under the value.

Both have been on the market a while.

Step 4 - Is a 2 bed house, been on the market a while, but have yet to send me the homebuyers report. Its 30 minutes away from work.

Step 5 - Is a bungalow, which would be perfect due to having a ground floor bedroom, plus more in the loft.

Across all the steps are various flats, I'm only looking at upper flats / upper maisonettes / top floor tenements (where there are ground, 1st and 2nd) as I'm so tired of having people living above me, I also have mobility issues hence having to look at smaller tenements.

To move a step costs £750, most I can ever put away is £700pm.

Step I'm currently standing on

Step 1

I'm £152 short to be on step 2, contemplating counting all my coins, all the notes I have at home (not what's in my purse) and dropping it in to my MSA's.

Savings plan

Saving = £650 per month

Fun = £50pm for chippy night, going out, hair cut, buying hair dye (I tend to buy a few at a time and only use half a packet), eyebrow threading (I'm in a people facing role and would like to look good), beer / gin at home.

Wages = bills, rent, petrol, bus pass, food and furbaby food / treats.

I also have a wiggle room budget with some leftover money and can move a bit with each passing week and drop the remainder in come payday, before I repeat the process.

My insurance / tax is all paid for and my MOT has just been sorted out and paid for along with the repairs (I have an account with my left over PPI money in which is my absolute emergency money, it's not being added to), in theory I have no car expenses until my insurance in April.

November events

Have to dye my hair (£0)

Want a haircut (£15).

Want my eyebrows threaded (£10).

Girls night out, meal and bus home (£20).

Skint_yet_Again · 17 November 2019 at 7:00AM

Welcome MovingForwards :wave:

Good luck with your saving and house hunting.

savingwannabe · 17 November 2019 at 9:06AM

I hope they reduce the price of the bungalow. You are so organised. I am vvvvv impressed and disciplined. V impressive Moving Forwards.

MovingForwards · 20 November 2019 at 7:03PM

Wednesday update:

Thank you for the encouragement!

The house and bungalow I was keeping an eye on have both been SSTC this week. The EA with the house said they had another, same area and when asked if it was the same price was advised yes. They sent me the brochure and home report and nooo, it needed too much TLC including on the outside, it was also £15k more! To me, it isn't worth it, but I would view it if they dropped it to £90k.

I am still searching and know the good budget properties sell fast.

I saw a 2 bed upper flat, with garage which was tempting as I liked the look of another in that block, however based on sold prices it won't be anywhere near the minimum £75k the lender will lend on.

Anyhow, the main thing is I've currently got enough to go for a £79k property, but for me that's just a little to tight with the lenders value and I've got to aim for £85k purchase price in case it's down valued. This explains why I'm working to increases of £5k each step.

Payday is next week and I will then know if I can get an AIP this year, or whether I have to wait a few more months.

Moved just under £10 to my MSA's and I'm £139 away from my next step!

Step I'm currently standing on

Step 1

MovingForwards · 24 November 2019 at 2:08PM

Weekend update:

Didn't go out on Friday as I'm in too much pain, spent the weekend vegging out on the sofa. The money I didn't spend went on pizza, a bottle of wine (not recommended as it gave me terrible heart burn) and some food for next week.

I've moved money from my lowest interest paying account to my highest interest paying account, every penny helps with my savings!

I've given my ex his last two bills back, as from next month that frees up over £50 pm to go into my savings; didn't do it before as I didn't want him to mess around with the divorce.

Started buying Christmas presents, will get them finished this week when I get paid

Found some more properties!

Did find one in my city but it's a one bed lower flat and I'm not even entertaining it for that reason, its bad enough where I am now.

Found a beautiful one bed middle flat, I know, I broke my own rule, but it overlooked the water and has potential to be a nice home with a few tweaks; why are people turning homes into open plan living / kitchens and not doing a semi-open-plan eg breakfast bar with more cupboards under it! Financially I had to rule that one out as it's not £75k + as per lender requirements.

I've put a one bed flat on my list, it's been on the market for a while and similar style to what I'm renting.

I've found a one bed bungalow, but it's slightly more than I would want to spend on a one bed.

Anyhow, I'm confident when the time comes, I will have the pick of a few properties

Today I have been gathering up my credit reports and emailed them to my broker, I updated my factfind and sent that over too. Just leaves my bank statements and wage slip to do this week.

savingwannabe · 24 November 2019 at 8:42PM

Sorry your bungalow went hopefully another one will come up soon. It's great that you are still looking and keeping your options open. I do admire your get up and go. It can be quite scary but you are so positive. Keep it up you will get there in the end.

savingholmes · 24 November 2019 at 8:43PM

:TFound you. Congrats. You are sounding very organised.

MovingForwards · 24 November 2019 at 9:48PM

Savingwannabe I'm absolutely pooping my pants with each step forward towards buying! What I want isn't in my budget, I also do not want to be paying £700pm on a mortgage so would rather compromise; get on the ladder with a nice place with prospects spend £500 pm on mortgage and an overpayment each month, save the £200pm plus additional savings, and step up when the time comes or overhaul what I've purchased. After all, I would only do flooring and painting for the first year while working out the rest.

Thank you Savingholmes, I'm pleased you have stopped by

I'm super organised with this, but also very stressed. At the moment my MSA's are my deposit, but at the same time my safety blanket, the idea of paying nearly every penny over is a bit unsettling as I vowed I would never not have money in the bank after I started over.

I've mastered the art of getting the home reports and going through the important information now, means I can quickly rule properties out or in.

This time next year I will be in my own place!

Moving forward and upwards

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