Mortgage

bodmil

I wonder if someone might be able to help with my musings...

I am currently in a well paying job, living at home so saving lots of monies. I'd like to buy a house, but I'd also like to quit my job. I had hoped to be able to last out my job long enough to save up 100k cash, buy a house and over pay as much as possible so that my repayments reduce to a point that they are manageable on a lower paid job.

I plan to borrow no more than £130k so I expect to get a somewhat decent rate at the time. I had budgeted that with my current job I could expect to pay £1400 towards a month, so it has always felt a very safe option.

But now I'm just not sure I can stick out this job too much longer without another plan in place. I have an idea to do a masters starting in September 2012, but which time I expect to have 100k in the bank. It's unlikely I would have time for a part time job, so for a year I will have no income.

I'm wondering what I could do?

My earnings will massively drop in my new field once I finish my masters (assuming I get any job), from £40k now to about £18-20k to start with. I have a rough back up plan of going back to my current industry as a freelancer earning a hell of a lot more than I'm on now per diem but no guarantee of work. I'm also in the process of qualifiying for a second job that will earn me peanuts but it's something at least. Of course I'm a hard working sort of person so I would expect to always find work in some means or another, I just don't want to be stuck with a massive commitment.

Of course, if I buy something now, I'm not sure what university I will get in to do my masters, so that leaves me with more of a problem....



I don't suppose anyone has any advice on the situation? Thanks.


NB, apologies for the useless title!

getmore4less

Debt, no income = disaster.

Wait till you have a clue as to what you are going to be doing.

bodmil

I did wonder if it was worth putting a smaller deposit down and using the remaining savings as a pot for monthly payments, that could give me quite some considerable time, particularly if I'm generating rent on a second room?

Yorkie1

I think your plan is fraught with difficulties and uncertainties in the future and you'd be foolish to take on the commitment. You don't know how 1) long you will manage to stay in your current job; 2) what your salary will be if you jack it in between now and Sept 2012; 3) whether you'll have any income during your Masters, probably you won't; 4) where you will be doing your Masters and thus whether the house will be in the right location / whether you'll have to sell or rent it out; 5) what your salary will be beyond the Masters and whether you'll manage to secure employment at all; 6) where the employment will be located.

I agree with more4less. Don't do it. Save up as much as you can and then you'll be in a better position to buy after your Masters

bodmil

Bums. Thought I'd be the last young person to be told 'save more'!

FinAdv

Hi,

I absolutely agree with Yorkie1. Its better to stay on rent for a while with so many uncertainties than to commit to something and then get into a mess.

If you have alot of savings and if you continue to do so, you will never have problem buying a house provided your credit history and other things are good. So, you should wait for the right time to buy it. If you commit now and you are not able to cope up with it, your whole life will be in a mess and you might not be able to buy a property again in the future.

bodmil

I know that's the good option, I just rather hoped I could do something useful with the cash while there was so much of it!