21 - Want to move out - Options?

Andos_2

Hi, I am 21 years old and looking to move out in the very near future!
I'm struggling getting started however. I have applied for HomeChoice which I had a letter confirming I can afford a mortgage up to £47,500 with them on there part-rent part-own scheme. However on these scheme's I'm finding there is little available at the moment...

So to the general market.

I earn a mere 15k salary at the moment whilst I'm part-time at university with a yearly bonus of say 1k. I earn nothing on top of that.

I have just paid off my loan and therefore outgoings are as follows:

Car insurance: 35
Phone bill: 35
Gym: 25
Credit Card: 50-100
Store Card: 50
Halifax URA: 12.50 (-5)


I wont include current housekeep just so you can see my outgoings if I were to have a new place.

My credit score isn't great due to missing a payment one month on my loan and being in arrears for month's on end on that one payment because I wasn't aware I was in arrears until a few months later. And missing a payment here and there on other stuff.

But to summarise outgoings when things are "uptogether" could be approximately 250 leaving approx 750. Obviously, being 21 I go out a blow a bit too.

What steps would I have to make towards getting a place? Financially.. Do I have no chance with my wage? I should get a payrise in April.

Does anyone have a suggestion? - Perhaps some government help that may be available. I must stress I'm not forced out of home or anything, I just want to become independent asap.

laughingcow81

You might be better off trying to clear your debts before thinking about moving out, especially if you don't have to move out.

If you really want to go, renting or a house share might be a good option for you, have a look on Gumtree at the going rate for rooms.

Once you've cleared your debts you can then start saving for a deposit on a house, one step at a time!

princessamy86

Do you have any savings? You'll struggle to get a mortgage without some form of deposit, so if you want to buy you need to work out the best way for you to save some money-and that might mean staying at home a while longer as it's much easier to save up when you're just paying board.

If all you want to do is move out, have you thought about renting? It would mean you had your independence, although the chances are it will seriously hamper your ability to save for a deposit. Up to you-depends which is more important at this stage?

overandout_2

Best for you to save off for a good deposit - and also look for ways to increase your credit score. Make sure from now on to pay everything on time, get yourself registered in the electoral roll, pay down your debts....you can check your credit rating on one of the 3 major credit companies....

Either rent cheaply or stay at home for another couple of years would be my advise....

Andos_2

Firstly, thanks for the reply's guys. Much appreciated.

My debts are only my credit card and overdraft with a small store card (Probs totalling 2500) at the moment.
From the sounds of the replies I have no chance within the next few years really then?
I will only share with my mates, that would be ideal - But, rather get my own place. I did look at a option that was "Rent-to-buy" whereby you rent a place at a reduced rate. i.e a 1 bed flat £395 per month. Then can choose to staircase payments to and buy bit parts of the home. I liked this idea, however they questioned whether I could afford it? Said I need to clear the loan (Which I have and perhaps get a payrise) which I hopefully will April 2010.

We'll see, but based on my wages would you all say I can't afford to rent really either?

princessamy86

I think you probably could afford to rent, depends whereabouts in the country you are. Have you got mates who would be good to rent with?

Andos_2

I have yeah, but they're less motivated than me to do so... So fed up of nagging and thinking perhaps do it alone! :rotfl:
I live North Bristol - Generally 1 bed's rent at about 500, 2 beds, 600, 3 beds 700..

poppysarah

Until you've cleared your debt and have learnt to manage your money (Have a work out of how much bills will cost you when you do move out) then there's no point imo unless you have to.

overandout_2

Credit card - I think it's fine. I have credit card bills but I tend to pay it off full end of each month. But I think you should clear off your store card though. They tend to have awful APR imho.

As for renting, would be good to rent with mates - woudl come up cheaper, you have fun and you get your independence as well!!

Nag away!!

Andos_2

Ah I guess you all have a good point! Thanks for the reality check people.

lilian1977

When you say North Bristol where exactly do you mean? Is that where you also want to live or would you consider anywhere in Bristol?