First time buyer going literally insane

seafarers_wife

Leon_W wrote: »

Nice one seafarers wife.

Life is for living and you're not going to get anywhere with a serious case of "what if" attitude.

I wish you and Captain Birdseye luck in your new home !

lol, if only you knew us in person . we are very serious about finance but its a gamble im willing to take as would rather pay 800 a month in mortgage payments rather than 500 a month in rent. plus the sooner we get a mortgage and get on the property ladder then the sooner we can start overpaying and reduce the ltv and save thousands in interest long term.

Croker

Leon_W wrote: »

" LeonW - wise words to an extent "

I've never been so insulted ! My words are always wise.

Going from living at home to renting is not all it seems. People look at the rent and think that's it and they'll manage. How wrong they are !


Add these together. Rent, TV License, BT, Water Rates, Electricity, Gas, Council Tax, Insurance, Food, Other Household Expenses etc etc. You'll be surprised how expensive it is compared to living at home.

It is no surprise to find that recent statistics are saying that Landlords are experiencing increasing rates of rent arrears due to the economic climate.

With respect, Leon, I did all of that when I was building up a sample budget for owning a house. I've got the spreadsheet open as I type this, and it includes mortgage, council tax, water, gas, electric, TV licence, landline, internet, food, car, insurance, petrol etc etc all the way down to a monthly haircut. I went so far as to researching the exact council tax band for properties I was interested in, deducting the 25% for single occupancy. I even budgeted for the worst case scenario so as to not give myself a false impression of how much it would cost for me to live, month-to-month.

So, sadly, no, your words aren't always wise, I'm afraid - you're telling me to do something that I've already done. Months ago. In great detail. I haven't, as you put it, "look[ed] at the rent and [thought] that's it and 'll manage." :mad:

Seafarer's wife - thanks for your input. Don't forget, though, that you have two salaries coming in to try and make up that 15%. I will only have one, albeit a relatively decent one. Still, that does make me a little more cautious, I guess. I certainly don't want to risk the folks' house, though, so I'm officially discarding that approach.

Incyder - that's a good suggestion. I do want to try and see if I can make it on my own though, if possible. Obviously I'm going to take another look at the figures to see if I can make it add up, but if not this might be a viable alternative - and, as you say, it's not for ever.

seafarers_wife

sorry, should have mentioned we are doing it only on 1 salary as hopeing to start a family once we make the leap onto the housing ladder so my salary is completly disregareded in any of our budget planning for the future.

originalmiscellany

I think having read this thread (it's pretty densely worded!) that you could do one small thing to improve your credit rating - that of getting a credit card and paying off in full every month, thus no over charges, but you will then have the track record and proof to a bank that you're a responsible credit user. That could be a small improvement which along with other great advice here could mean you're in a much better position in a years time. Be strong, and I'm sure things will work out in the long term.

Croker

originalmiscellany wrote: »

I think having read this thread (it's pretty densely worded!) that you could do one small thing to improve your credit rating - that of getting a credit card and paying off in full every month, thus no over charges, but you will then have the track record and proof to a bank that you're a responsible credit user. That could be a small improvement which along with other great advice here could mean you're in a much better position in a years time. Be strong, and I'm sure things will work out in the long term.

Does my credit rating need to be improved, though? I've never been turned down for credit, and I'm making the payments (as I always have) for the loans I have outstanding. Really, the problem I have is how best to go about raising a deposit, so how would having a credit card and paying it off each month help?

I ask as I'm curious if this is something else I need to consider!

Barros

Croker wrote: »

Does my credit rating need to be improved, though? I've never been turned down for credit, and I'm making the payments (as I always have) for the loans I have outstanding. Really, the problem I have is how best to go about raising a deposit, so how would having a credit card and paying it off each month help?

I ask as I'm curious if this is something else I need to consider!

I think the prev OP was thinking further down the line when you come to have a deposit and apply for your mortgage in principal. That way the lender can see that you have a more recent history of credit worthiness

If you are worried about though, apply for a copy of your credit file to be on the safe side. Using Quidco etc you can usually get cashback also, bonus!

Thrugelmir

Croker wrote: »

You're right, though - the most financially savvy thing would be to stick it out here at home.

Firstly can I say well done for sticking it out the thread. I read your post earlier but have only just reread the thread. The word judgemental pops up fairly often. The regulars on this forum genuinely do try and help. Even if views and opinions differ.

You've nearly clearly your debts. So take pride in that fact. We all learn by making mistakes.

The property market isn't going anywhere fast. So once you manage to start saving the goal will become achievable and closer every month. May seem like a long time away but you'll get there.

originalmiscellany

Quite right Barros! I should have been more clear - thinking long term!

FATBALLZ

I really don't think it's fair to expect your parents to stump up this cash, if you don't pay them back (for whatever reason, perhaps beyond your control) you could put their home at risk. They are doing enough for you - I've got enough for a house deposit, yet saved it all up renting over the last 5 years - if I'd lived with my parents I'd have another £30k or so and barely need a mortgage at all. I earn roughly the same as you yet have rent, council tax, childcare etc to pay and can save nearly £1k a month, you should be able to save more than this and have a deposit in under 2 years.

The property market looks unlikely to go anywhere quickly so there's no rush.

CloudCuckooLand

Croker wrote: »

but it was you who went with the incorrect assumption that I needed to trim my budget.

Croker wrote: »

So, sadly, no, your words aren't always wise, I'm afraid - you're telling me to do something that I've already done.

Have to respond to these I'm afraid. Not looking for a ruck. Just to point out a couple of things.

First. We are not psychic. Having a go at poor Leon for pointing out what has to be pointed out daily to many people on here, when you have not previously mentioned your spreadsheet...for heaven's sake, how is he supposed to know?

Second. My assumption that you need to trim your budget was correct - just belated. Unfortunately, you did not come to these fora for advice early enough.

When you were accumulating debts, had you done so, you would have got good money-saving ideas on how not to accumulate debts so quickly, or at all hopefully. At a time when you were in the cheapest possible living arrangement, at home with the parents, to accumulate large debts was not quite so all-knowing, was it?


For info, during the time I was at home with my parents, the worst my debts got was £200 or £300 worth of overdraft, and a £1k car loan. Then I had an early light-bulb moment, getting fed up with paying £30 a month for the fees/letters the Bank charged...so when the car was paid off, that was it. Never again.

Now, 20 years later, I am mortgage-free with a £300k house, a six-figure sum in ISAs and investments on top of my pension, and a new car bought in cash, despite being only ten years older than you...this is not to brag - at the rate you can save, once the debts are gone, you will probably overtake me within 10 years...

But as you are not psychic, either, I thought you should know that my advice comes from walking the walk, not just talking the talk...


My final piece of advice;

If the parents can survive without your housekeeping money, why not ask for a period of grace, get your debts dealt with quicker - which avoids interest - get your deposit underway sooner, get into your place, and then repay the "overdue" housekeeping to them to keep your inheritance situation simplified at 1/3rd each..?