Would a mortgage lender touch me if I was in this position next summer?

MARKMAKAVELI

Yeah estimates really with regards to the gas/electric. I am careful though.

All the other stuff is spot on though.

I allowed £45 for insurance, plus my current account offers some insurance so I thought between the 2 I'd be covered.

It's all just about getting an idea for me so I can keep focused on my saving. Thanks

RedFraggle

saveaholic68 wrote: »

Agree with Yorkie1's post above. Also, don't mean to be negative but are your list of outgoings based on anything or guestimates? Just things like your gas/elec and water seem quite low. I know I was paying more than that when I was living in a one bed flat. Also many lenders require you to take out buildings insurance and/or life insurance. Good luck though, sounds like you're on the right path x

There are other things missing too including
Clothes
Car insurance
Car MOT/repairs
TV licence

I think it sounds a bit too tight really, so keep saving for now

littlemrtinkle

we are a couple who work all day and being on a water meter our bill is around £17 a month so £20 should be fine.

I agree gas and electic seems low i would say nearer £70-80 a month.

Get the halifax reward account and they pay you £15 a month instead of you paying for your account.

you also need buildings as well as contents insurance.

hcb42

it seems doable, although it is tight, not a lot for the unexpected. I agree gas/elec look light, I would double that. We pay about £75 combined but live in a three storey victorian drafty property. Water is fine, we pay that for two in a metered property.

your "other" insurance will cover the buildings insurance aspect, which is mandatory for a mortgage (and obviously common sense too)

You need to consider what would happen if you lost your job. Some people opt for insurance for this, or illness. Personally I don't, (and don't regret that even though hubby was made redundant two weeks ago!) but we do have a healthy buffer of savings, you probably need to get a 3-6 months take home pay as a savings buffer as a minimum too. You will be asked questions like this during the mortgage application.

Good luck with it all and finding the gf.

somethingcorporate

5% rates are pretty common nowadays but rates this low won't be around forever, have you considered what happens to your budget when the rates return to the long-run average of around 7%? or even the rates of the early 90's when they hit 15%?

Not that many people could cope at this latter but it is worth sparing a thought for!!

property.advert

If you use all your savings to buy the property and then need all your income just to support it, then you have no means of putting away money to build up a 6/12 month slush fund.

Even worse, you are tight at current interest rates and would possibly sink when, not it, rates go up.

sulkisu

You should really allow something for emergencies, which may be greater than your car breaking down.
I would also advise ditching going out now, and saving that £100 each month so that you have money available before the emergency occurs, instead of saving up once it has happened.

MARKMAKAVELI

Thanks for everyone's replies.

I had a feeling I was being overly optimistic. It's gutting to realise that I'm not going to get a place any time soon but there's people in worse situations than me so can't be too despondent.

Probably going to stay at home for another couple of years until I'm 28. I cringe at the thought but if it means I can have a house by then, it will be worth it.

Hopefully have between 18k and 20k total 2 years from now. All my mates have been given their deposits. So jealous!