Best put on my big girl pants! my saving for a deposit diary

mumof3.12kindebt · 3 December 2017 at 8:13PM

The dip was with my car finance and credit card repayments so actually more in debt repayments going out than now

mumof3.12kindebt · 3 December 2017 at 8:28PM

I guess I need to have a rethink and decide where I go from here. Finally having savings in my account I'm no longer stressing about money.
There is a development being built in our village to be finished next year which is why I started to consider part buy. It would mean I wouldn't have to leave my village which has been home for ten years if we could afford one.

I'm going to have a long hard think between now and next month and decide what to do. Regarding the loan and savings.

Silence101 · 4 December 2017 at 7:33AM

I’d put your name down as interested in the development. My husband did that as soon as it was possible to do so online. Check who the developers are, and I think it was through their website that he put his name down.
Having savings definitely gives you peace of mind, but now you’ve got an emergency fund it might be worth paying more to the loan. I think the best thing to do actually is to go to an Independent Financial Adviser, because they’ll be able to tell you if you could realistically get a mortgage at this moment in time, or how big a deposit you’d need. Then you will know exactly what to do for the best. But in the meantime put your name down and fill in the forms needed for the development.
Unfortunately you paying full rent doesn’t mean you’d be offered a mortgage, even though it’s cheaper, because they test how high the repayments would go if the interest rates go up.

Don’t forget that it’s expensive moving, we had to pay £3000/4000 for all the fees and the flooring (the new build had no flooring, so we spent about £1000 on carpet and flooring BUT that’s because my husband fitted it himself. We were told that it would cost £2500 to get someone in.) Basically you’re looking at needing another £5000 on top of the deposit, to comfortably afford to move. We also managed to borrow the work van and had friends to help. Not sure how much a removal company would charge, so you might need even more money on top of the deposit.

getmore4less · 4 December 2017 at 12:09PM

I am not trying to say don't save,

if the move/buy makes sense over renting on cost and lifestyle then a bit of extra interest may be worth it so save more overpay less to get there sooner.

if the debt becomes an issue with how much mortgage you can raise you can review the size of deposit then easer to reduce the loan because you have too big a deposit than to try to get some back because it is too small.

as above costs of moving especially into a new build can ad up but there are lifestyle choices there as well bigger rooms with an old second hand rug for a while may still be better than the cramped space you have now.

shared/HTB can help get a getter rate on the mortgage as well.

mumof3.12kindebt · 4 December 2017 at 6:37PM

Thankyou for you advice both it is very much appreciated. I think im going to concentrate on saving until Dec next year and then review

mumof3.12kindebt · 5 December 2017 at 7:00PM

if the debt becomes an issue with how much mortgage you can raise you can review the size of deposit then easer to reduce the loan because you have too big a deposit than to try to get some back because it is too small.

This was my thinking originally. The way I was looking at it is. If we can get a mortgage with x deposit and have 5000 left once moved etc. It's much easier for us to pay off the loan with the extra saved than to realise we don't have enough saved but have a smaller loan and have to lend money off family etc because we have cut ourself short

mumof3.12kindebt · 6 December 2017 at 12:53AM

I just wrote a massive post.
Walked away came back . Clicked reply and I was too late so it's all been deleted.

Anyway the upshot is I've gave in after weeks of pondering telling myself we don't need it etc and the money is better off in savings and I've invested in some more storage solutions.

Once it's all sorted I expect the boys room to be perfect the entetance way to work better with no clutter and the kitchen to be almost sorted. Then it's just the lounge area our room and the bathroom to concentrate on.

We have sorted one shed today not alot to skip as of already done that in the summer but we can get in there now everything has been put back properly

Tahlullah · 6 December 2017 at 1:08AM

Just read your diary. You clearly have a plan which is based on the needs of your family, and if you can get it to work, you should go for it.

Hope the extra storage gives a bit more space until you can get enough saved for the deposit.

mumof3.12kindebt · 6 December 2017 at 1:21AM

it's an investment because I've decided all the bits I've brought in the last few years since leaving my ex and being with my new partner I'll be taking with me when I move. And all the old stuff from my old not so good place life is being got rid of slowly. Although I have debt Which I'm not proud of I am proud of how far I've come and how little is left of what I had with him.

Anyway enough about the past this diary is suppose to be about the present and our future.

mumof3.12kindebt · 6 December 2017 at 1:51AM

Tahlullah

Just read your diary. You clearly have a plan which is based on the needs of your family, and if you can get it to work, you should go for it.

Hope the extra storage gives a bit more space until you can get enough saved for the deposit.

Thankyou . Sorry if Ive came across abrupt on some of my replies to you guys. I really don't mean to and I really do take all advice on board.

I'm in a Better frame of mind today than I was earlier in the week and silence101 your post about storage made me realise investing in some better /more storage until we can move so it's easier to live here made alot of sense. I'd been thinking about things and how we could make it work better for a while but was too scared to see my savings drop a little to take the plunge. I know when the delivery comes and I'm finally getting the place how I imagine it will begin to feel much more like home until the day we have to say good bye and move on to our next Chapter so Thankyou you helped me realize it's not a waste it's a way We can comfortably live better until we can afford bigger. (ie afford to move)
getmore4less thankyou for your advice regarding my loan /savings.
I've decided I'm going to see what we can save by the end of next year and if we are comfortable here and not in so much of a rush once we have made further improvements with our living space I'll pay off The loan next Dec and start to rebuild the savings account from there. Essentially if we can move before youngest starts school that will also be before my eldest son chooses what gcses he sits ready for year 9 (he's currently in ur 4). We ideally need to move by then at the latest so we don't disrupt my eldests gcse core studies as we would have to move him schools (assuming we wont be able to buy in our village) . My mum moved me schools towards the end of year 10 and it really messed up my gcses so I always said I'd never put my kids through the same.

So in conclusion just under 3 and a half years Max to pay off the loan . Save a deposit . move. And get the kids settled. I think they pick their gcses the June of year 8. Unless it's changed.
So we have until April /may of 2021 thats 3 years 3 months and 26 days or 1212 days (can you tell I Googled it I was intrigued :rotfl:)

I'm off to get some sleep.
Here is to a frugal fun and saving hard 2018 and beyond. Whatever it takes (I have boundaries

) to get to that finish. Best bit is if we hit that goal we will also achieve another of being debt free before 30 and another of being homeowners (ish) before 30 !

Can you tell I'm feeling much more positive tonight. :money:

Best put on my big girl pants! my saving for a deposit diary

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