what to do?

charlotte1989_2

hi everybody.

currently contemplating buying a house in the next few months... currently a full time student, I have £15k saved and have a job lined up from september and i'll be earning £21,588 the first year.

Would it be best for me to stay at home for another year and save as much as possible for a better deposit? or is £15k a decent amount?

With my current savings and wage, what kind of house prices can I be looking at?

Mortgages confuse me and I'm waiting to talk to my mother about it all...but just wanted to start looking at what's around in my price range!

Thanks.

Lokolo

You would be looking at around £100k.

I would also be living at home for another year if you can. At least that gives you more time to have a feel for viewing the different types of places.

Ellie007

Hi Charlotte,

What area do you live in? Would you be able to get something decent with a comfortable mortgage, and leave some savings for any nasty surprises?

Also, would you be able to get a mortgage prior to or after only just starting your job - most mortgage lenders want to see six months payslips. Lots to think about.

If it was me I would be tempted to stay at home and keep saving for a year which should put you in a much better position financially. There is no fun in having an unexpected househod bill and no funds to pay for it...I can vouch for that!

charlotte1989_2

thanks!

yeah, guessed it would be best to stay at home for another year, just eager to finally get a place of my own but it would make sense to get more money behind me just incase!

looking at halifax/sowerby bridge/saltaire/wilsden kind of areas at the moment...lots of cute little terraced houses i want! definitely wouldnt be able to afford to buy if i lived out of yorkshire!

kingstreet

To be on the safe side, use 4x income for the mortgage, first taking off the annual value of any credit commitments.

Add the result to your deposit and this tells you your maximum purchase price. Don't forget to budget for fees.

charlotte1989_2

thanks for the reply. are credit commitments things like student loan/tax/NI payments?
or do I include annual car insurance and expected bill costs, house insurance and things?

sorry, feel like I'm asking a stupid question but this is all so new!

charlotte1989_2

and council tax...and all the other things i dont want to pat for! maybe ill live at home for ever....

SuzieSue

Stay at home as long as you can bear to. It is the only way to save for a decent deposit. The more you save, the sooner you will be mortgage free. Take advantage of the opportunity to save as much as you can as you will probably never get the chance again.

kingstreet

Credit commitments are loan repayments, minimum payments on credit or store cards (or credit card/store card balance) or HP payments,.

Use a lender's affordability calculator to see what the output is, based on your circumstances. Nationwide, for example;-

http://www.nationwide-intermediary.co.uk/calculators/aff_calc