Cost of living calculator?

Vikaroo

Me and my boyfriend are about to start saving for a deposit for a mortgage and are going to be saving £500 a month each for the next 18 months to do this. I have a figure for how much it will cost to pay our mortgage each month, but as I've never lived away from my parents home, I've no idea how much to expect to pay out on bills, food etc, is there a calculator or other similar tool online which will help me to figure this out?

Also, does anyone know what kind of savings accounts are best to save for a mortgage?

Thanks

Vikki

googler

Ask your parents how much they spend on food each week/month, divide by number in this household, multiply that fiigure by 2 to get rough cost for you and BF, assuming you continue broadly same diet.

Have any of your close friends made the same move? Would they be comfortable sharing their budget with you?

You could start by filling in some blanks at this calculator

HappyMJ

I generally go by whatever benefits pay should be enough for a basic lifestyle. Benefits currently pay £111.45 a week for a couple plus mortgage/rent and council tax.

You would then add on your luxuries such as a nice mobile phone, sky, holidays etc...and as well as any debt repayments.

BitterAndTwisted

Whatever it is that you do or don't pay your parents is going to start looking like a real bargain once you understand what it costs to run a home.

Council Tax: maybe £100 a month
Heating: £50 a month
Electricity: £30
Phones: £40
Internet: £20
Buildings Insurance: Dunno. Ask your parents
Contents Insurance: Dunno. Ask your parents
Food: £40 a week as an absolute minimum
Fares: You should know what these will be

So that's £200 plus a month each as an absolute minimum before you've even set aside anything for clothing, entertainment or holidays as well as a fund for property maintenance and repairs.

A couple of things to think about: could paying the mortgage and all of the other bills be done on one salary if one of you should lose your job or become ill? Could you afford higher mortgage-payments when interest-rates inevitably rise and could you still afford them if neither of you enjoys a pay-rise in the next five years? During the eighties interest-rates soared into double-figures. There is absolutely no reason to believe that this could never happen again in our life-times.

Vikaroo

Thanks guys, I have thought about some of the points you have made regarding one of us becoming unemployed, sick etc and also interest rates and we would still be able to do it on one income, albeit at a bit of a push, I have weighed up the pros and cons of getting a mortgage vs renting, and just see renting as dead money and paying for someone else's house. I currently work for the NHS so should progress quite steadily in theory, however my partner works in the building trade and there have been months where there has been no work, but there is potential for him to go and work for the water service if this was to become an issue.

Can anyone help us with what type of savings accounts are good for mortgage deposit saving?

BitterAndTwisted

Eh, renting is not dead money. It buys you substantially more freedom than being tied to home-ownership gives you. There could be all sorts of reasons why relocating might be possible or even necessary and selling a property can take months and months and cost rather a lot.


Savings accounts: look for one which requires a couple of months notice to make any withdrawals as these can offer better rates. It's also a real disincentive to find reasons why you need to dip into any of it as well.

Vikaroo

I just like the thought that at the end of the term the house is yours and the only worry then is the bills and maintenance, you don't get that with rent. No worry of relocating, we both love in a lovely little village and have no intention of relocating else where!!

DVardysShadow

googler wrote: »

Ask your parents how much they spend on food each week/month, divide by number in this household, multiply that fiigure by 2 to get rough cost for you and BF, assuming you continue broadly same diet.

Good point.

Home is a good place to start. Learn about Utility bills, how to read meters and about Council tax.

DVardysShadow

Vikaroo wrote: »

Thanks guys, I have thought about some of the points you have made regarding one of us becoming unemployed, sick etc and also interest rates and we would still be able to do it on one income, albeit at a bit of a push, I have weighed up the pros and cons of getting a mortgage vs renting, and just see renting as dead money and paying for someone else's house. I currently work for the NHS so should progress quite steadily in theory, however my partner works in the building trade and there have been months where there has been no work, but there is potential for him to go and work for the water service if this was to become an issue.

:eek::eek::eek::eek::eek:

People have made very bad mistakes thinking that renting is dead money. They bought into houses before they were financially strong enough, prices fell, they got into negative equity - a £15,000 deposit on a house could easily turn into £15,000 negative equity. So that is £30,000 blown away. And many of those in that situation will probably still tell you that 'renting is dead money'

BitterAndTwisted

Vikaroo wrote: »

I just like the thought that at the end of the term the house is yours and the only worry then is the bills and maintenance, you don't get that with rent.

No you don't. During the entire 25 years of a mortgage-term a renter wouldn't have had to spend a cent on maintenance and repairs. That house you bought might need a new roof over a 25 year period. Or a new central-heating-system. Or new windows. Or. Or. Or.

No worry of relocating, we both love in a lovely little village and have no intention of relocating else where!!

Don't be so certain. Things change. People's dreams and aspirations change. Employment opportunities change. I can't remember the sheer numbers of threads I've read on this forum over the last 12 months where people feel compelled to move because their employment prospects require it.

Home ownership is not necessarily always the most ideal option when people are very young. ESPECIALLY when they are not married.

MAFERGAL

Vikaroo wrote: »

Can anyone help us with what type of savings accounts are good for mortgage deposit saving?

Most banks do a high interest account if you hold a current account with them. Eg. I am with Santander and have a 'fixed saver account'. My version pays 6% interest and you have to save min of £20 and max of £250 per month for 12 months. I like you try to save between £500 and £800 a month. I put £250 in the high interest and the rest into an ISA.
Some banks have better rates, I know Northern Rock had a regular saver at a rate of 9% a few months ago and a max pay in of £500 a month.

Hope this helps.