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    • Mark1987
    • By Mark1987 9th Oct 16, 6:05 PM
    • 63Posts
    • 1Thanks
    Mark1987
    First time buyer in London with 160k deposit
    • #1
    • 9th Oct 16, 6:05 PM
    First time buyer in London with 160k deposit 9th Oct 16 at 6:05 PM
    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!
Page 1
    • Pixie5740
    • By Pixie5740 9th Oct 16, 6:08 PM
    • 8,872 Posts
    • 11,889 Thanks
    Pixie5740
    • #2
    • 9th Oct 16, 6:08 PM
    • #2
    • 9th Oct 16, 6:08 PM
    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.
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • Mark1987
    • By Mark1987 9th Oct 16, 6:11 PM
    • 63 Posts
    • 1 Thanks
    Mark1987
    • #3
    • 9th Oct 16, 6:11 PM
    • #3
    • 9th Oct 16, 6:11 PM
    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
    • By Pixie5740 9th Oct 16, 6:16 PM
    • 8,872 Posts
    • 11,889 Thanks
    Pixie5740
    • #4
    • 9th Oct 16, 6:16 PM
    • #4
    • 9th Oct 16, 6:16 PM
    What about SDLT, solicitors fees, surveys etc. Do you have additional savings to pay for those?
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • Mark1987
    • By Mark1987 9th Oct 16, 6:17 PM
    • 63 Posts
    • 1 Thanks
    Mark1987
    • #5
    • 9th Oct 16, 6:17 PM
    • #5
    • 9th Oct 16, 6:17 PM
    Unfortunately I will have to include everything in the savings mentioned earlier. Could you please give me an idea of these expenses?
    • paddypaws101
    • By paddypaws101 9th Oct 16, 6:20 PM
    • 1,996 Posts
    • 2,407 Thanks
    paddypaws101
    • #6
    • 9th Oct 16, 6:20 PM
    • #6
    • 9th Oct 16, 6:20 PM
    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
    Last edited by paddypaws101; 09-10-2016 at 6:25 PM.
    • Mark1987
    • By Mark1987 9th Oct 16, 6:22 PM
    • 63 Posts
    • 1 Thanks
    Mark1987
    • #7
    • 9th Oct 16, 6:22 PM
    • #7
    • 9th Oct 16, 6:22 PM
    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?
    • Lemonsqueezer78
    • By Lemonsqueezer78 9th Oct 16, 6:23 PM
    • 245 Posts
    • 296 Thanks
    Lemonsqueezer78
    • #8
    • 9th Oct 16, 6:23 PM
    • #8
    • 9th Oct 16, 6:23 PM
    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.
    • Pixie5740
    • By Pixie5740 9th Oct 16, 6:28 PM
    • 8,872 Posts
    • 11,889 Thanks
    Pixie5740
    • #9
    • 9th Oct 16, 6:28 PM
    • #9
    • 9th Oct 16, 6:28 PM
    http://www.moneysavingexpert.com/mortgages/house-buying-guide
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • Lemonsqueezer78
    • By Lemonsqueezer78 9th Oct 16, 6:29 PM
    • 245 Posts
    • 296 Thanks
    Lemonsqueezer78
    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
    • Lemonsqueezer78
    • By Lemonsqueezer78 9th Oct 16, 6:38 PM
    • 245 Posts
    • 296 Thanks
    Lemonsqueezer78
    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.
    Originally posted by Mark1987
    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.
    • Mark1987
    • By Mark1987 9th Oct 16, 6:41 PM
    • 63 Posts
    • 1 Thanks
    Mark1987
    Oh, I checked a couple of banks and they said around 200k so I assumed they were all the same.

    I agree, I prefer to have a chat with someone who can guide me a bit through the process before doing a similar investment.

    Thanks!
    • needhouseadvice
    • By needhouseadvice 9th Oct 16, 7:18 PM
    • 76 Posts
    • 19 Thanks
    needhouseadvice
    wow, £160k savings and you're 29! how did you do that??

    sounds like you have a decent budget to work with. i think walthamstow, leyton and leytonstone would get you a 2 bed for that price. all up-and-coming areas with lots of young professionals moving there.

    oh hang on you work in west london. i'm not really familiar with that area. acton?
    • Mark1987
    • By Mark1987 9th Oct 16, 9:05 PM
    • 63 Posts
    • 1 Thanks
    Mark1987
    My parents helped me.

    I would like to consider west London because it's full of IT companies which is my job, so I could consider jobs in central London and also in west London/Reading without travelling from one side to another one.

    Acton could be an idea, I started to have a look at that too.
    • Bluebirdman of Alcathays
    • By Bluebirdman of Alcathays 9th Oct 16, 9:13 PM
    • 2,711 Posts
    • 2,984 Thanks
    Bluebirdman of Alcathays
    Just move to Bristol, if you're half decent in IT you'll earn 40k, and that sort of deposit will get you a place in Clifton. And no need to consider getting a lodger!
    • Bonfire Bride
    • By Bonfire Bride 9th Oct 16, 9:35 PM
    • 664 Posts
    • 817 Thanks
    Bonfire Bride
    It would get you a 10 bed mansion in Wales!

    Good Luck on your search!
    Mummy to 2 little boys born in 2013 & 2015
    House on the market for 19 months ....SOLD! ...complete!
    Natalie
    • onlyroz
    • By onlyroz 9th Oct 16, 9:48 PM
    • 12,196 Posts
    • 22,846 Thanks
    onlyroz
    My initial thought was Richmond, but you'd only really get a 1-bed place with that budget. You could get 2 beds in Ham:

    http://www.rightmove.co.uk/property-for-sale/property-58646735.html

    Or near Wimbledon:

    http://www.rightmove.co.uk/property-for-sale/property-44066025.html
    http://www.rightmove.co.uk/property-for-sale/property-62130983.html
    http://www.rightmove.co.uk/property-for-sale/property-39487770.html

    Or Kingston:

    http://www.rightmove.co.uk/property-for-sale/property-56357455.html
    http://www.rightmove.co.uk/property-for-sale/property-58232024.html

    If you want more for your money but still in easy access to London, try Reading, Woking or Guildford.
    • Jack Johnson the acorn
    • By Jack Johnson the acorn 9th Oct 16, 10:21 PM
    • 1,011 Posts
    • 1,034 Thanks
    Jack Johnson the acorn
    It would get you a 10 bed mansion in Wales!

    Good Luck on your search!
    Originally posted by Bonfire Bride
    Just move to Hoylake

    http://www.rightmove.co.uk/property-for-sale/property-42485583.html
    • magicpork
    • By magicpork 10th Oct 16, 9:14 AM
    • 53 Posts
    • 15 Thanks
    magicpork
    If you're going for a new build then don't forget London Help To Buy Equity Loan, you can get a 5-yr interest free loan for up to 40% (then pay back over the next 25 year, it's an equity loan so the amount will go up or down depending on how property market moves), this can help push your budget to well above 500k and lower your mortgage rate.

    20% HTB EL : 100K
    Saving 160k
    Mortgage: 240k

    You'll need to read up pros and cons of HTB EL, but it's definitely a better option than Shared Ownership given your saving and earning and personally I think it will work great for you.
    • Out, Vile Jelly
    • By Out, Vile Jelly 10th Oct 16, 10:09 AM
    • 2,989 Posts
    • 9,599 Thanks
    Out, Vile Jelly
    I found Martin's house buying guide really useful as a FTB. I ended up getting my first mortgage deal with a high street bank and they issued a helpful leaflet that also explained every stage of the process.

    As you have plenty of cash, don't scrimp on your conveyancing solicitor- choose a reputable local one that you can visit in person rather than the cheapo online call centre option.
    They are an EYESORES!!!!
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