Thinking about buying my first place, please advise

rus4u

Hello dear nice people,

I am thinking about buying a 3 bedroom flat/house in Manchester as I will be 30 years old in January (getting old J) using that First Time Buyer Scheme from the government where you pay only 5% deposit instead of 20%, thinking about buying one of these new built houses in Manchester as some of them are really nice, but can I afford it?

At the moment I live with my parents, pay only £400 a month and don't worry about anything like bills and food (most of the time)

Another monthly paid expenses:
I have a brown new Vauxhall Corsa for which I pay £210 a month
I spend about £110 a month for petrol and £55 a month for parking
Mobile bill £20-£30 a month


I am earning only £21k , which is £1400 a month after tax and I am thinking/dreaming about buying a property for £100k-£120k and will need to take £5k-£6k loan(maybe from Zopa) for the deposit as I have only £1000 savings which I want to keep for emergencies

of course the main question is Can I afford this?
Never lived on my own before as after moving to UK had to help my parents with paying for the mortgage and stuff so that will be something new for me

Does anyone have something to advise?
Did anyone go through something like this before?
Where is the best place to get a £5k-£6k loan? Zopa maybe?

I think that is all I wanted to say, please let me know if you anymore information to be able to advice

Thanks a lot in advance for all your replies and help

BitterAndTwisted

This has got to be a wind-up, surely?


No, you can't afford it. No mortgage-lender will accept a deposit based on a loan!

At your age and on your level of salary I'm shocked that you don't have more than a grand to your name.

19lottie82

Hi OP, the non starter here is, you can't use a loan for a deposit. A lender will ask where you got it from, if you tell the truth they will reject you and if you lie, well, you are committing fraud.

Provisionally you may be able to borrow up to 5 times your salary, but then there is the affordability aspect, and you're paying out a large % of your salary for your car, so this will reduce what they will lend you.

You will also need £1.5 k ish for legal fees, then more money to furnish the place.

Why have you only got £1k saved up, if you've been living at home all this time?

Can I also ask, why are you paying £210 a month for a corsa???? that's wild! (that's what I drive btw, and a relatively new one too)

In all honestly, I think you would struggle to maintain a £110k ish property as well as spending almost £400 a month on your car / petrol / parking, not even including insurance and road tax. Not to mention, the repayments for the loan that you were suggesting.



my advice....... ditch the car, get something cheaper, then you won't be saddled with the debt / finance payments, thus you will be able to save more now, and be able to get a better mortgage deal, WHEN you have SAVED the deposit, legal fees and money for furniture.

ACG

As has been said your not going to get a mortgage based on the above.

After your commitments you have £1100 left over. If you became a recluse for 6 months you would have best part of the 5% saved up. You cant have a loan form the deposit.

On an income of £21k at 95% ltv your not going to get above 4x income so that means at best your looking at £84k (although i would rather say £80k as you have a car loan etc). So with a £5k deposit your not going to get to £100k more like £85k.

Not great news but hopefully it gives you a bit of an idea on what needs to be done and what is achievable.

kernowbeetle

BitterAndTwisted wrote: »

This has got to be a wind-up, surely?


No, you can't afford it. No mortgage-lender will accept a deposit based on a loan!

At your age and on your level of salary I'm shocked that you don't have more than a grand to your name.

why be so rude? I thought the whole point of these forums was for people to ask questions about subjects they need help with - not to post a question and then get sarcastic replies like this.

As for the OP, I do think you will need to save more and cut down on your spending before you will be able to buy - but don't be put off, just work out what you need to do to get yourself in a good position to buy and then stick to the plan! good luck

rus4u

thanks for all your replies so I guess I will need to go for a property for about 80k with my salary, but first I will need to save up 4k for deposit... right... thanks for the information