FTBers. Can we do this?

dotexe

Hello. Not sure this is the right place to post this, but hopefully someone can help. We're looking to buy this house, and everything on paper suggests it's doable, but I can't help but think I'm missing something. I'm worried about our income, which isn't set to rise in the near future and all the other expenses that come with a new house that I may not have factored in.

Please can I have your thoughts and if I have posted this in the wrong place can an admin please move it thankyou.

House Value: 142,250
Our Deposit: 29,000
Mortgage Required 113,250
LTV: 79.6%

Fees:
Stamp Duty: £1425
Arrangement: £499-999
Solicitors: £1000
Total Fees: £2924-3424

Budget (all per month)
Combined Income after tax: £2257 (2 of us)

I also work overtime which could add up to an extra £400-1000pm but this is not guaranteed.

Outgoings
Mortgage: £575-600
Council Tax: £130
GWE: £85
Phone/Broadband: £30
TV Licence: £12
Food/Home Items: £300
Life Ins: £15
Build/Contents: £20
Car Ins: £40
Birthdays/Christmas: £60
Petrol: £80
Car Mtce: £20
Car Tax: £10
Takeaways/Eating Out: £50
Mobile Bills: £70
Haircuts: £15
Gym/Hobbies: £30
Eyecare: £22
Dental: £2.50
Parking: £4
Clothes: £40
Home Improvements: £100
Total Outgoings: £1735

Then I would like to put £200pm in an ISA for savings/contingency so that leaves us with £322.

The house is also a new-build so we would be looking at costs for carpets/lawn/curtains/kitchen appliances/alarm/fencing etc.

Are we stretching ourselves too far here? What if we want to get married/have children, how will we cope? I am a chronic worrier. Everyone else seems to think we will be OK except me.

G_M

Check the prices of similar properties being re-sold on the development or on dearby ones.

New Builds always attract a premium - by buying a one/two year old on same development you'll save money. Or negotiate HARD for inclusion of the carpets/lawn/curtains/kitchen appliances/alarm/fencing etc.

- these things cost the developer peanuts as they bulk buy, but can save you much more.

Nynaeve

Sounds like you've thought it through very carefully.

However you mention extra costs associated with a new build - they tend to be massively overpriced and they will lose more value than an older house, so bear this in mind if you will be selling in the mid-future.

If you're still sure you want the new build you should be able to get carpets, lawn, fencing and possibly appliances "thrown in" while negotiating.

dawyldthing

It sounds a lot, but some mortgages have no fees. Also is there any chance of saving until you have 25% saved as you could get more mortgages with no fees and a much much lower rate, mine with the Halifax is 3.79% fixed for 3 years, which isn't brillant but it was fee free and still allows me to overpay 10% per year.

I'd barter down on the house, I'm buying a older house but still got over 10% off (been on the market for a long while mind), and get property bee on mizorella firefox (sp) which will show how long they have been on the market for and any price changes

DVardysShadow

dotexe wrote: »

Outgoings
Mortgage: £575-600
Council Tax: £130
GWE: £85
Phone/Broadband: £30
TV Licence: £12
Food/Home Items: £300
Life Ins: £15
Build/Contents: £20
Car Ins: £40
Birthdays/Christmas: £60
Petrol: £80
Car Mtce: £20
Car Tax: £10
Takeaways/Eating Out: £50
Mobile Bills: £70
Haircuts: £15
Gym/Hobbies: £30
Eyecare: £22
Dental: £2.50
Parking: £4
Clothes: £40
Home Improvements: £100
Total Outgoings: £1735

Then I would like to put £200pm in an ISA for savings/contingency so that leaves us with £322.

The house is also a new-build so we would be looking at costs for carpets/lawn/curtains/kitchen appliances/alarm/fencing etc.

Are we stretching ourselves too far here? What if we want to get married/have children, how will we cope? I am a chronic worrier. Everyone else seems to think we will be OK except me.

Everything in red is something you can cut down on to a greater or lesser degree. There is probably £800 of slack in that budget, provided you don't go out and buy sofas on credit and only spend what you have.

FireWyrm

No, it all looks doable. Your figures are not far off mine and I am quite happy at the moment. I would take careful note of what DVShadow has said, especially the groceries of £300 a month. I could cut that by two thirds and still live comfortably...there's your slack right there.

As my father used to say :"Make hay while the sun shines". I would be overpaying by as much as you feel comfortable with and also putting money into contingency funds which are hard to get to unless it's an emergency.

dotexe

Thanks so much for the responses so far. To answer a few comments.

I have looked around the area and there are 2yr old properties of the exact same build selling for around 8k less than new and Zoopla estimates their value to be around 17k below what we would be paying.

For what it's worth I don't believe them to be in as good a location as the new one but then we would be looking at already having flooring, a garden, fencing, possibly curtain rails and any snagging already sorted for us which would save us quite a bit.

If we were to buy we wouldn't be looking to move again for a long time if at all. The house would be plenty big for all our needs.

It is of some comfort that my numbers don't seem to be too far off the mark. I was expecting an uproar but that's the worrier in me again, hah.

moneypuddle

I'd say your figures look fine and quite comfortable

dotexe

Every mortgage calculator on the Interwebs tells me on our salaries the most we should be borrowing is 95k. Can't help but still be concerned.

FireWyrm

Phft. Mortgage calculators don't take into account your real spending patterns. None of your figures look out of the ordinary and apart from tightening your belt where DVSahdow has indicated already, you should be in fine shape for a while. Now, it won't all be sweetness and light. If the interest rates hit 80s levels, you could be in for an uncomfortable ride, but it probably won't be for long in the grand scheme. The trick is to anticipate this and as I said, make hay while the sun shines taking care to salt enough away for the lean or difficult years. It won't make you future proof, but it's the best anyone of us can do besides being born Mystic Meg.

DVardysShadow

dotexe wrote: »

Every mortgage calculator on the Interwebs tells me on our salaries the most we should be borrowing is 95k. Can't help but still be concerned.

You have not told us your gross, so difficult to say.

Your deposit is very good for FTB - unless you have to pay it back to a parent or whoever. The thing to remember is no credit. Some FTBs seem to think that they have to have new white goods and a new sofa and a new TV. So they get it on credit. Some of the mortgage calculators assume this behaviour.

As you are you could buy a sofa outright by waiting a month. And replace a car by waiting a year if you trim down your expenses. Don't take on credit, keep an eye on your budget and only spend what you have and you will be fine.