FTB In need of assistance!!

ginchyqueendangle

Hi all

sorry if this is in the wrong place but i really could do with some advice.

Im 23 years old and iv decided this is the year im going to buy my own place. Now realistically, i know any mortgage offer i do get is going to be fairly low so im trying to look at properties as cheap as possible. I havent spoken to a financial advisor yet as im just nosying to see what is available for what price at the moment.

At the moment i earn 12k a year, this is due to increase april time but it could increase anywhere between 500 to 1k not really sure. I also get a bonus around the same time which will boost my savings(or help pay off anything i still owe).

I also currently have a deposit of 10k which im hoping to increase to 15k (fingers crossed) within the year.

Outgoings wise the only large payment i really make is £100 monthly car payments. I have direct debits for a few other things but altogether it cant come to more than £250.

Financially my parents arent in a position to help me out so its all down to my savings and any increase in my wage.

Im just wondering if its worth sitting down with a financial advisor just now and discussing options to see roughly how much i could get (including possible wage rise) or do i wait until my wage has been increased and iv managed to acrue more savings?

My parents seem to be taking me seriously about it but i want to prove that i have worked out all possible costs etc. I have no idea about the best mortgage etc for me so i cant even properly check with mortage calculators. Does anyone have any advice or opinions for me, i really would appreciate any help!

Thanks in advance

Ginch

lynzpower

your best bet is to a) wait until you have your payrise and then b) go and see an all of market broker.

where in the UK are you?

silvercar

you need to see a mortgage advisor not a financial advisor - specialist not generalist.

Also consider how much each month you can afford to pay out, rather than the max anyone will lend you.

maninthestreet

To be brutally honest with an income of 12K - 13K p.a, you are not going to get a mortgage of more than 65K (5 times income), which, even with 15K savings, will only get you an 80K property, and that won't buy much in most areas of the UK. The payments are about £380/month, assuming 65K repayment mortage, with 5% p.a interest rate. Adding your existing payments of £260, this comes to £640/month. Then you will have to add council tax to that, say £60 bare minimum, which takes you to £700/month, at least. And you haven't started living yet i.e food, travel, gas, water, electricity, telephone etc - how much is your current take home pay?

ginchyqueendangle

lynzpower wrote:

your best bet is to a) wait until you have your payrise and then b) go and see an all of market broker.

where in the UK are you?

Hi

Im in the west of Scotland, house prices are rising rapidly in this area, espec the town i stay in, however most flats around here are still only 60-80k. But by the current regeneration in the town and new motorway to Glasgow, prices just keep rising. What im worried about is that if i leave it too late im going to be outpriced and have no chance of getting onto the property ladder.

Ginch

ginchyqueendangle

silvercar wrote:

you need to see a mortgage advisor not a financial advisor - specialist not generalist.

Also consider how much each month you can afford to pay out, rather than the max anyone will lend you.

Hi

sorry, i actually meant a mortgage advisor. Its just with my mind in overdrive about sorting my finances its the first thing that came out lol!

Ginch

ginchyqueendangle

Maninthestreet

Luckily the town i live in still has some cheap properties about, i have actually seen some nice flats from 61k upwards. Unfortunately not sure how much longer those prices are going to stay espec with regeneration etc in the area.

The council tax band that i would fall into would be about £90ish a month and that includes water and sewerage bills. Which isnt too bad. Meant to say that im also eligible for 25% single occupancy discount!

I cant actually find a recent payslip but from memory my average take home pay is just under 1k a month.

Regards

Ginch

ginchyqueendangle

Bump! :rolleyes:

maninthestreet

ginchyqueendangle wrote:

Maninthestreet

Luckily the town i live in still has some cheap properties about, i have actually seen some nice flats from 61k upwards. Unfortunately not sure how much longer those prices are going to stay espec with regeneration etc in the area.

The council tax band that i would fall into would be about £90ish a month and that includes water and sewerage bills. Which isnt too bad. Meant to say that im also eligible for 25% single occupancy discount!

I cant actually find a recent payslip but from memory my average take home pay is just under 1k a month.

Regards

Ginch

You need to go through your recent bank statements to find out how much you currently spend each week, over and above things like rent, car repayments, etc. Does the £240/month you mention include rent?
From the figures in my previous post, you will have only about £75/week to live on. Even assuming the cost of living on the West Coast of Scotland is
significantly less than the South East of England, you are going to struggle
to live on that when you take all costs into consideration - if you are looking at a flat, there will almost certainly be a monthly service charge to pay as well, for upkeep of the building. How much money do you currently spend each month on petrol? Even assuming £500/year for gas/electricity on a small one bed flat, this is going to use up about £10 of your weekly allowance.
Then there the one-off bills like contents insurance, TV license, etc.
You could reduce your costs by using your 10K savings to pay off any loans/credit card debts you have, which would free up more money to live on.

ginchyqueendangle

Hi all

Right i have been thinking about this and rather than using my savings to pay off my debt im just gonna continue selling on ebay etc and any money i make will go to paying off debt. The only 2 i really want rid of at the moment are whats left of my alloys and my CC. (I only have 3 debts)

Im also going to continue saving up so much of my wage each month to put towards my deposit.

My car loan i will continue paying, i did consider getting a small loan to pay it off because it works out il be paying about £40 less pm but not sure if i wanna risk that then apply for a mortgage.

Iv been buying bits and pieces for my flat, so that iv got less to get when i finally buy somewhere, so il continue with that. My mum also gets little bits and pieces for me every now and again.

I figure if i stick to this, in about 2 months i should hopefully have got rid of most debt. Only once iv tackled this will i then go and visit a mortgage advisor to work out how much they would be willing to lend me.

Regards

Ginch

ginchyqueendangle

I decided to speak to a mortgage advisor just to discuss my options. He reckons that i could prob get a northern rock together mortgage of roughly 60-65k. This is adding whats left to pay of my car into the mortgage. and without using any of my savings as it wudnt mean i cud get a higher amount, just pay like a fiver less a month in mortgage payments.

Iv decided to wait until the end of feb before i apply, this gives me some time to knock some money off my credit card. (paid off my alloys now!)

Any advice much appreciated!

Ginch