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Thread: Half a house

  1. #1

    Half a house

    So we're applying for a mortgage for a shared ownership. IF it goes ahead I want to try and overpay a little every month and save up for the deposit for the 2nd half.
    If it doesn't go ahead I want to save up more deposit. Either way I need to try and stay accountable!

    I was thinking of dividing our spare monthly cash in 4 (after bills and food etc)
    a) 1/4 to overpay mortgage
    b) 1/4 to save towards deposit
    c) 1/4 to save for emergency fund etc
    d) to spend

    If the mortgage doesn't work out I'll be putting a+b towards a deposit to improve our LTV rates.
    Is it a realistic division or would you add more categories, like home improvement?

    UPDATE (p8)
    We have got the keys! I'll update some more once we have all the paperwork sorted.

  2. #2
    I've done some basic calculations, and it looks like we might be able to save 45/month for each pot.
    Hopefully we'll find ways of cutting back even more, but the last few months we've not been saving anything at all. I had a look on the overpayment calculator, and even paying just 5 more a month on our (hopefully) soon to be mortgage would cut down one year to our payment plan. So I need to remember that every little bit really does help. We'll have quite a lot of expenses when (if) we first move so we might stick to a very low overpayment the first few months. But I don't want to get complacent as we really do need to be quite intransigent if we plan on affording the 2nd half of the house.

  3. #3
    I've drawn three grids that will be filled up every 100.
    Aim is for 5000 emergency fund
    Deposit for 2nd half 30000
    And to overpay by 15000

    I think we'll be concentrating on the EF first but may alternate deposit fund and overpayment fund as we go.

    We're trying to save as much as possible these next few months to afford the flooring and other bits, as the fees etc are making quite a dent in our savings. I'm working on the assumption that we'll have 500 or less left over for the EF by the time we buy the house. If it all falls through, we'll at least have a slightly healthier EF so will be able to save for a bigger deposit until we attempt to buy again. (As we can only afford a shared ownership at the moment, I'm not sure how often we'll find one on the market, so we might only try again in a couple of years.) Obviously the hope is that it all goes smoothly this time and we won't have to go through this again!

  4. #4
    You appear very motivated with your goals, I will be following your journey

    Saving for a deposit is hard, I am doing that exact same thing at the moment. I am hoping to be in a position to buy next year, fingers crossed!! I have found not popping to the shop and not ordering online has really allowed my bank balance to remain stable (who'd have known haha!! )

  5. #5
    Haha, yes, I usually have no problem not spending, until I have to go to the shops for a necessary thing and come back with a million and one impulse buys! Same with online shopping. I don't usually use it but when I do I seem to have a binge of buying everything and anything.
    At least we're not in debt (apart from student loans)but it is scary to think how much we could have saved by now if we had been sensible!

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