It's the 'unforseen house expenses' that scares me because I really don't know what to budget for.
You say 'a couple of months', others have said 'six months'. Hmmmmm.
I'm not sure I follow what you mean by putting 'taxed money in an ISA vs tax free in Pension'. ISAs are tax free. Or do you mean there's a way to take the money out of my pay into a pension before tax?
Item | Income | Expense | |
Main salary | 2000 | ||
Part time job salary | 300 | ||
Bills | 300 | 100 service charge, 100 council tax, 70 utilities, 30 internet | |
Living expenses | 300 | 80 groceries, 80 hobbies, 50 non-groceries food, 20 household, 15 phone, 15 union, 40 misc | |
Short term savings | 200 | holidays, electronics, etc | |
Parents loan | 750 | 10 year loan, fixed at 2.4%, flexible payments | |
Formal mortgage | 600 | 30 years, fixed at 1.14% for 2.5 years | |
SUBTOTAL | 2300 | 2150 | difference of 150 per month |
Part time let | 350 | Occasional airbnb, Mon-Thurs tenant, etc - conservative guesstimate | |
Full let | 200 | Additional money compared to part time let | |
Total including tenant | 2850 | 2150 | 700 |
Also, my parents and I established that my payment method to them is going to be to put the money in a savings account with both of our names on. It makes no difference to my folks if the money I put in exactly tracks the payments they're making or not, so if necessary I could stop contributing for a bit, or even treat it as an emergency fund and take money back out. And for mortgage affordability checking purposes it won't be seen as a debt obligation. I am so very lucky to be in this position.