Buying a house as a single person

rodent

If you have a 20K shortfall - you could always get a credit card and take out a 0% balance tx - and concentrate on payiing that off quickly - any remainder at the end of the 0% deal can be moved to a new 0% deal. I know quite a few people who have bought many properties usning this method - even covering 100% of the property price with a credit card.

For more info check out www.stoozing.com forum for loads of advice on best cards etc !

iwantahome

Hi Stacey I am in the same position as you but without the deposit, I am still on the road to depositsville.

Have you thought about your fees and a rainy day fund? The rainy day fund is especially important if you are buying on your own. If you buy with a partner and one of you loses your job at least you would still have one income coming in, but if you buy on your own and lose your job then there is no income at all. I am looking to save the recommended 3 months worth of my pay just in case, also about 3 grand for fees and 3 grand for furniture. I'm looking at £20,000 deposit on top of that.

Don't make the same mistake others have and put everything you have into your deposit as many of these people are now facing repossession and a lot of heartache.

My advice would be to stay at your parents a while longer and save up the shortfall in your deposit for a place of the standard/location you want and also save up for fees, furniture and the unthinkable.

Good luck.

iwantahome

Oh and whatever you have on a credit card will be deducted from the amount you can borrow on a mortgage, don't go down that route in case you are unable to get another 0% deal and then get stuck being maxed out with a mortgage and maxed out with a credit card therefore unable to afford to live.

catfish50

Would you want to consider shared ownership? Worked out well for my daughter, doesn't work for everyone.

nearlyrich

My DD has just bought a house and her work colleague will be her lodger once all the renovations are complete, it's tough being a single householder these days would you consider a lodger?

My DS lives in London so I know how expensive even renting is, at least you would be paying off your own mortgage with help from someone else who probably can't afford to buy or who prefers the flexibility of renting.

rodent

iwantahome wrote: »

Oh and whatever you have on a credit card will be deducted from the amount you can borrow on a mortgage

Speaking from experience - this is NOT the case.

chambta

rodent wrote: »

Speaking from experience - this is NOT the case.

This definitely will be the case now.

rodent

chambta wrote: »

This definitely will be the case now.

...based on what exactly ...?

HappyMJ

rodent wrote: »

...based on what exactly ...?

Banks seem to now calculate on affordability rather than just a multiple of income. Normally the multiple was around 3 to 4 times income but in this case the bank has offered 4.5 times based on affordability. If the OP had credit cards the bank would take that into account and lend less. If the OP had a much higher income therefore a higher disposable income some banks have offered 5 times income.

KiKi

moesasji wrote: »

ps) £600 per month doesn't seem an awful lot to me if you have to pay all bills from it (Council tax, Gas&Water, BBC tax, car insurance,...). So doing a real budget might be worth it.

Well that depends on how you budget.

If travel and mortgage aren't included, then all my bills - including my gym, mobile, all utilities and insurance etc. - only come to £200. Another £150 for food and that's a lot left over. I could easily live on that, and it's £250 left over for extras, like presents, holidays, clothes...

KiKi