How much (minimum) do i need to buy a house at £70k?

YoungBusinessman

Been on a couple months, will try to haggle price down so i can keep as much cash as possible...how much will i need for fees,furnishing,first months setting everything up and most importantly deposit etc?

Will try to get price down to £65,000 but use the £70,000 as a guide incase i cant. Will be looking at 10% deposit and 90% LTV.

Also from agreeing the price to actually paying deposit/handing over keys how much of a gap is there?

caeler

Have you cleared your £30K debt yet?

HappyMJ

YoungBusinessman wrote: »

Been on a couple months, will try to haggle price down so i can keep as much cash as possible...how much will i need for fees,furnishing,first months setting everything up and most importantly deposit etc?

Will try to get price down to £65,000 but use the £70,000 as a guide incase i cant. Will be looking at 10% deposit and 90% LTV.

Also from agreeing the price to actually paying deposit/handing over keys how much of a gap is there?

How long is a piece of string?

You could move in with nothing and trust me people will donate their old furniture to you or you could buy second hand or you could buy new.

You will need 10% deposit. So £6,500 to £7,000. Fees are about £2,000 depending on who you use. I just used a standard conveyancing service with no surveys (due to the property being only a few years old) and it cut the cost right down but you are taking a big risk by not doing surveys but that's up to you.

Yorkie1

YoungBusinessman wrote: »

Been on a couple months, will try to haggle price down so i can keep as much cash as possible...how much will i need for fees,furnishing,first months setting everything up and most importantly deposit etc?

Will try to get price down to £65,000 but use the £70,000 as a guide incase i cant. Will be looking at 10% deposit and 90% LTV.

Also from agreeing the price to actually paying deposit/handing over keys how much of a gap is there?

You have said that you will be using a 10% deposit and the price of the property to be estimated at £70K. Therefore your deposit will be £7K.

Mortgage application fee could be from £100 to £1500 depending on product.

Survey fees - probably £400ish if you just pay for the lender's valuation. If you get your own survey done at the same time by the same person, add another £200-400 depending on lender and type of survey.

You won't have stamp duty.

Solicitors fees likely to be about £1K.

Furnishing - depends on the state of the place and what you've already got. If you're on a shoestring then don't get new stuff. Freecycle / Freegle, friends and family are your friends. You don't need an awful lot of stuff to start with anyway (as opposed to what you might want, which is entirely a different matter).

Insurance - buildings compulsory, contents advisable. Go on a comparison site.

G_M

Go to the library and borrow a book on house buying.

It will tell you all the processes involved, the costs involved etc.

YoungBusinessman

£30k debt is not cleared yet, it is however down to nearer £25k. A £63k mortgage is coming in at about £400 a month payments. Easy affordable even on top of debts. The debts have a high repayment as are quite short term. I do realise income could stop any minute. So hoping to stay as cash rich as possible. A place simular to this is renting out at £500 a month so looks to be a good investment as a home for a few years and then to let out.

Was hoping to do the lot for £10k then furnishing on top, seems do able.

agrinnall

Unless you have a hign income (I'd hazard a guess at a minimum of £40K) nobody is going to offer you a mortgage while you already have a £25K+ debt.

YoungBusinessman

Last financial year seen gross income at £38,000 with £6,000 pension contributions and a £10,000 divedend payment.

So really its not even 2xincome of that year. This financial year has started off the same payment scale.

Wobblydeb

How much of your income is salaried? It sounds like quite a bit might be self-employment income which may mean you need a higher deposit.

hazyjo

They are likely to knock any debt (along with interest) off of what they'll lend you. It is likely to impact greatly on such a small mortgage.

Jx