First Time Buyer - In London

lilab_2

You still don't say why you have been paying the mortgage for 5 years and who will pay it when you move out? Is this a consideration for what you will have to declare to a mortgage company?

property.advert

omariqy wrote: »

I have saved a fair amount but like I said much of that has gone on the wedding and the kitchen/bathroom.

We are looking to live in London for the shortish term - 4 years. Then move out and either sell or rent out. My fiancee in 4 years time hopefully should be a dentist so our combined income will be 6 figures.

Is an interest only offset mortgage worthwhile?

Your numbers don't add up, neither does your story really. If she will be a dentist in 4 years time then she is still a student and presumably has no income. In fact, she is probably borrowing money to fund her course.

Why are you paying a mortgage at your parents' property ?

If this is not contrived, then your financial arrangements are in a hell of a mess.

omariqy

I only paid it for 5 years as I was working and living there plus for about a year my dad didn't have a job so I helped out. My dad will be paying the mortgage from now on.

omariqy

She starts her course in September. As I am getting promoted my income will be increased to offset most of her lost income.

I'm telling it how it is not sure why it doesn't add up, I don't have anything to hide?

brian_723

You may not like it but i think you should rent just a shared room between you both with all bills included .just food to pay for and you can eat very cheap if you want .Try and pay everything on one wage and save the second wage ,you may even be able to save some of the first wage also .Now in 3 years not much of a sacrifice you should have a very good deposit .You will now be able to buy and your mortgage will be a lot more comfortable to pay off in the log term .

Loanranger

How much is your wedding costing?
Could you downscale a one day event to help you further your long term plans?

brian_723

yep why blow loads on money on one day ,it is being together that is important not all the pomp and ceremony ,it amazes me how much people spend one day, then struggle for a deposit and sometime the wedding would bene enough for a deposit .Not saying this is you op just that people blow a fortun on one day and then struggle with bill which can put a satrin the marriage anyway .

duchy

Forget the maths for a moment-Imagine if you were RENTING-rather than buying. Would you consider renting in Kilburn or would it be too much of a drop from West Hampstead? If you wouldn't rent there-don't buy there. Renting you can (after a year) walk away with one month's notice from a place-if you buy -specially in a not so nice area you can be sitting it out for a year or more-so far better to buy in a place you actually WANT to live !

Honestly-why not wait and save the deposit -presumably all the building work is done and the wedding is paid for-so stop spending and save like lunatics for a year and then buy (who knows by then prices may have stabilized or bottomed out). Gives you more time to suss out which areas will offer you best value for money too-If you can live off one wage or less -presumably as you are paying the entire mortgage you could continue to live with your parents . It all sounds very intermingled financially and messy -with potential for it to turn about and bite you on the bum later.

Four years is a long time away-you still need to support yourselves through that time-and you are assuming your partner WILL qualify and not be one of the ones who don't stick what is a very high demand course -or if ill health in either of you etc occurs to scupper or delay your plans -Life happens-usually when you are already overstretched.
EDIT She hasn't even STARTED the course yet ????? Maybe before deciding she's going to rake you in a six figure salary (and I think you're going to be shocked at what newly qualified dentists earn in the early years tbh) she needs to at least START the course. The dropout rate is high for dentistry -and she'll really have no idea how hard til she starts it !
Of course instead of waiting for her to earn you could earn more in the meantime I suppose...............

Is there anyone who could give unbiased advice about your finances -where you stand with your parents mortgage (assuming your name is included on it) and for property advice -have you actually viewed what you can afford wil buy you in Kilburn (not the glossy estate agent paperwork but actually viewed). I think you need to be very clear what kind of a drop you are taking -and maybe even rent in Kilburn before buying there. Personally I love areas like Kilburn but it's a very different place to live than W Hampstead and living in a place is very different to visiting. You might love it but before throwing all your finances in one basket you might be wise to "try before you buy".

Marvel1

omariqy wrote: »

Our combined income is about £70k.

It was our parents' idea. I have been paying the mortgage for the last 5 years and my dad thought this would be the best way to get on the property ladder. Neither me, my fiancee or our parents have that kind of money spare/saved up. Not sure how else we will buy - £50k will take us forever to save.

The alternative - renting - is also proving difficult. Our budget is £950 pcm and we are finding it really difficult to find a one bed for this price.

I find it difficult to understand how it's hard to save up on that salary, as I'm earning only 18K, and manage to save something each month.

Before I was on 18K I was started off on £12K in 2004, but in 2007 I managed to get on the property ladder on my own.

duchy

omariqy wrote: »

She starts her course in September. As I am getting promoted my income will be increased to offset most of her lost income.

I'm telling it how it is not sure why it doesn't add up, I don't have anything to hide?

So she's quitting work to go to uni -so you lose her income -your promotion doesn't *quite* make it up to the joint $70K you were earning.
She'll have a lot of books/equipment to buy for her studies-more than the student loan will cover so further shortfall. You were paying no rent before-was she? And neither of you have any savings ?

Wow-I guess you don't work in banking (or maybe you do !!!)

Do you really not see how poorly thought your plans are ?