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First time buyer in London with 160k deposit

Hi everyone!

I'll try to be short and direct without telling you the story of my life. :)
I'm a 29yo single professional guy, currently living and working in west London. I think it's time to start looking for something to buy (I spend £1200 a month for the rent which means wasting a lot of money).

My savings are £160k and my current salary is £45k/year, which could raise to 50-55k within one year.

Considering 2 bedrooms properties, how would you move into the market? What property should I consider to pay a reasonable mortgage considering that I am single?

This would help me to have a generic idea since I don't know much about properties.
If anyone knows London, I would like to consider areas from Staines to Isleworth/Brentford.

Thanks!
«13

Comments

  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    Name Dropper First Post Photogenic First Anniversary
    Play around with some online mortgage calculators, most lenders have them on their website. Once you have an idea of your budget that you I'll start to narrow down the kind of properties you can afford.
  • Mark1987
    Mark1987 Posts: 101 Forumite
    First Anniversary Combo Breaker First Post
    I had a look online and it seems I can borrow around 200k, which would make a total of 360-370k considering my savings and salary.
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    Name Dropper First Post Photogenic First Anniversary
    What about SDLT, solicitors fees, surveys etc. Do you have additional savings to pay for those?
  • Mark1987
    Mark1987 Posts: 101 Forumite
    First Anniversary Combo Breaker First Post
    Unfortunately I will have to include everything in the savings mentioned earlier. Could you please give me an idea of these expenses?
  • paddypaws101
    paddypaws101 Posts: 2,093 Forumite
    First Post First Anniversary Combo Breaker
    edited 9 October 2016 at 6:25PM
    Go into local estate agents and have a chat....lots of them have mortgage brokers in the same office. Visit several and see what they all have to say, you certainly don't have to commit to anything.
    In my part of London you would probably be looking at a leasehold flat rather than freehold for that kind of money so you need to understand how leases work. Cheaper properties often have shorter leases and while you can apply to extend, you would need to have that cash in the bank and extensions can be pricey.
    As a single guy you may well consider taking in a lodger if you get a decent sized 2 bed property and that could offset a good proportion of your mortgage costs, you can earn about £7.5k tax free through Rent a Room
  • Mark1987
    Mark1987 Posts: 101 Forumite
    First Anniversary Combo Breaker First Post
    Would be a useful alternative to consider shared properties?

    I don't get one point about shared properties. Why should I pay the rent on the remaining part of the house when I can use that money to pay a mortgage? In which situation would you consider shared properties?
  • You're question is a bit broad.... what exactly do you want to know? Are you asking where in London to live? Noone can really answer this for you - you need to do some research yourself, I think.

    Firstly - take a look at few banks' mortgage calculators and get an idea of what you can borrow and what the repayments would be. Then take a good look at your finances and figure out how much you are comfortable actually paying (be aware that how much YOU feel comfortable paying may be different to how much a mortgage lender is happy for you to be paying). Or you can see a broker who may be able to shortcut some of this for you and you can cut to the chase in terms of what you can borrow, with whom.

    Your "future" salary won't come in to this, from an affordability perspective - only what you earn now.

    Then you will need to spend a good amount of time researching areas in london where you can get what you want for the amount you can afford. There is no sorcery to this, you need to put in the research time yourself. No one on here knows anything about you - what you look for in an area/neighbourhood, want you don't like in an area, how you intent to get to work and what travel links you need to have ... all these things and more will play in to where you'll want to live. You seem to have some areas in mind - so what do you want people here to tell you? Go have a look at some properties in those areas!

    Be realistic about your living costs, which obviously amount to much more than just your mortgage payment. You'll have property maintenance costs to take in to account, insurances, travel costs - possibly ground rent or maintenance charges depending on the type of property you purchase. Work out a realistic budget and don't overstretch yourself. When your salary goes up you can save money and look to up-size in a few years.

    Good luck.
  • In terms of buying a home you will need to factor in

    - Conveyancing costs (go online, get some quotes, make sure the quotes include all the searches and there are no hidden fees tucked away in the small print)
    - Removal costs (go online, get some quotes from local moving firms)
    - Stamp duty (google "stamp duty calculators")
    - Mortgage fees and valuation fees (some mortgages may have fees, others may not)
    - Survey costs
    - The cost of any furniture and white goods you might need
    - The cost of any priority maintenance your new property may need to have done to it
  • Mark1987 wrote: »
    I had a look online and it seems I can borrow around 200k, which would make a total of 360-370k considering my savings and salary.

    I'm assuming you have no debts with savings of the level.

    Halifax's calculator (for example) suggests you *could* borrow £276,000 on £45k pa - and with £140k deposit (I've taken off £20k to pay for all the fees, SDLT and other moving expenses) that could be a property of £400k+.

    I would check a few banks if I were you as amounts can vary significantly.

    Or even better, I would speak to a broker if I were you, in your case I think a bit of professional advice might be wise.
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