Advice on my long term plan to get a house 😊

PupPup

Hello all,


I am posting this here as my long term goal is to get a mortgage and buy myself a nice little house somewhere.


I will outline my plans below. I am looking for any advice about ways in which I can rebuild my credit score and get the most out of my savings towards a deposit.


For full disclosure, and to help me get better advice, I want to let you know that I have Asperger's Syndrome, which shouldn't affect my ability to obtain a mortgage, but which does affect my ability to understand things (I can be a bit slow on the uptake, but once I get it, I get it).


So far in life I am 29 years old (30 in November :eek: ) and I have no savings. I work a low-level job and earn approximately £13250 pa. I take home £986.99 most months (sometimes it's less if I've had any time off sick).


I owe £6567.09 to various unsecured sources, but this is being paid off with the aid of Christians Against Poverty at a rate of £410 pcm. They estimate that I will have repaid this money in 22 months (they allow for interest changes and put up £40 pcm for me to cover any unbudgeted costs such as dentistry or glasses). They actually only want £405.66 pcm, but I like to round it up as this is easier for me to budget for.


I pay my parents £250 pcm rent and I also pay them £25 per month for my mobile phone bill (taken out in my Dad's name as I failed the credit check when it came to changing my contract). My bus fare to work is £68 pcm with a megarider.


CAP also allow me £210 pcm for food, leisure and clothing. I only buy myself a few food items; specialist things for my diabetes such as sweeteners or sugar free food & drink that my parents' wouldn't share. This probably amounts to under £40 pcm. I do occasionally have coffee or some food out, but I'm prepared to cut this out altogether to achieve my goal sooner.


My plan would take five years as it stands, in so much as after the 22 months of CAP repayments are finished, I intend to put £420 pcm into a savings a/c or ISA for 38 months, which would result in savings of £15960 (hopefully enough for a good deposit) plus whatever savings/overpayments CAP returns to me.


However, I will likely have to spend some time rebuilding my credit rating after being in debt and would like advice in this area, as well as any advice anyone can offer about mortgages as I don't really know what I could borrow with that kind of deposit and my wages (assuming they don't change much).


Many thanks for reading this and thanks in advance for any advice anyone can give.


PupPup

ruggedtoast

With the time frames you are talking about there isn't much point worrying about mortgages now. Concentrate on paying down the debt and saving.

Any chance you can up your income?

[Deleted User]

PupPup wrote: »

I don't really know what I could borrow with that kind of deposit and my wages (assuming they don't change much).

Lenders are willing to lend what they believe is affordable for the borrower, the maximum figure that most lenders will consider is around 4.5x yearly earnings, it's fairly safe to assume you can borrow up to 4x your yearly earnings, which means that you can borrow around £50,000. Are there houses in your area for around £65,000? A higher deposit won't allow you to borrow more, but it would allow you to buy a more expensive property.

You could look around the area that you want to live in on Rightmove to get an idea of what sort of property you can afford, in some areas £65,000 is enough for a house suitable for one person but in others not so much, so it will be worth investigating if the area that you want to live in is one of those areas or you may need to adjust your expectations and perhaps look at shared ownership or similar schemes.

PupPup

Hi, thanks for your reply.


At present, there isn't a lot of hope unless the local job market improves. I can't drive, which does hold me back as I'm limited by bus routes.


My current role has no chance for progression, as the store we provided warranties for has ceased trading, but I'm always looking to see if another department has any vacancies. I get alerts from several job sites as well as looking online for local council jobs.


I'm rather cautious of changing jobs as I've only just started to make a decent dent in my debts, and the stability is important to me whilst I still owe anything. I saw how slow the progress was when I was on JSA and I'd rather sit it out for 22 months until I'm debt free and then look for something better paid!


Do you know any good accounts for savings? I know interest rates are low at the moment, but at least if I can see my money building up, it will motivate me to continue. I did have an ISA, but it's linked to an account I owe on and don't use, and the ISA provider say they can't link it to a different account.


Thanks,


PupPup

PupPup

citricsquid wrote: »

Lenders are willing to lend what they believe is affordable for the borrower, the maximum figure that most lenders will consider is around 4.5x yearly earnings, it's fairly safe to assume you can borrow up to 4x your yearly earnings, which means that you can borrow around £50,000. Are there houses in your area for around £65,000? A higher deposit won't allow you to borrow more, but it would allow you to buy a more expensive property.

Hi, thanks for your reply.


At the moment, I'm looking to live in a town called Cinderford. The houses I like the look of are usually £120,000 or under. I'm prepared to move into something that needs work as long as it is liveable in the meantime (a functioning kitchen and bathroom is all I'd need!).


I can save money to some extent in that I don't need parking, and the houses with parking or garages cost a bit more as parking is hard to find in this area. It's also cheaper than other areas as it's slightly less desirable due to lack of jobs and distance from Gloucester/Bristol. Although this may change when the new ASDA is built in nearby Steam Mills (no idea when this is actually happening though).


PupPup

ruggedtoast

PupPup wrote: »

Hi, thanks for your reply.


At present, there isn't a lot of hope unless the local job market improves. I can't drive, which does hold me back as I'm limited by bus routes.


My current role has no chance for progression, as the store we provided warranties for has ceased trading, but I'm always looking to see if another department has any vacancies. I get alerts from several job sites as well as looking online for local council jobs.


I'm rather cautious of changing jobs as I've only just started to make a decent dent in my debts, and the stability is important to me whilst I still owe anything. I saw how slow the progress was when I was on JSA and I'd rather sit it out for 22 months until I'm debt free and then look for something better paid!


Do you know any good accounts for savings? I know interest rates are low at the moment, but at least if I can see my money building up, it will motivate me to continue. I did have an ISA, but it's linked to an account I owe on and don't use, and the ISA provider say they can't link it to a different account.


Thanks,


PupPup

Interest rates are very low, and the amount of interest you would gain on what you can save would be tiny.

Being honest, you are on a pretty low income. Your best chance of owning a house is going to be trying to increase that. Either by taking on extra hours somewhere or upskilling so you can get a better paid job.

PupPup

Thank you, ruggedtoast. I had suspected that my income would be too low for a mortgage to be realistic


I actually have a Level 2 Diploma in retail skills, a BA in English Lit and an MA in creative writing, lol, so it's not skills or qualifications that I feel I need more of! The problem usually comes down to lack of relevant experience and poor interview techniques.


My customer service is always pointed out to me by employers and co-workers as being excellent, I just struggle to get jobs more suited to me because of my Asperger's. I look very appealing on paper, but I suck at interviews as I struggle with eye contact and am never really sure what to say.


But also, as I said, I feel it best to stay put for now to clear my debt and then look elsewhere once I have fewer financial obligations.


Thanks,


PupPup

jc808

You cant afford a house in that area.

Project houses will be cheaper but not half price or less.

Where will you get the money to refurbish the house? If its that run down then youre talking tens of thousands.

The savings your talking about (no parking) arent significant at all.

Concentrate on working on yourself and paying down the debt. You need to be able to get a better job. No chance of buying a house in your current position.

ruggedtoast

PupPup wrote: »

Thank you, ruggedtoast. I had suspected that my income would be too low for a mortgage to be realistic


I actually have a Level 2 Diploma in retail skills, a BA in English Lit and an MA in creative writing, lol, so it's not skills or qualifications that I feel I need more of! The problem usually comes down to lack of relevant experience and poor interview techniques.


My customer service is always pointed out to me by employers and co-workers as being excellent, I just struggle to get jobs more suited to me because of my Asperger's. I look very appealing on paper, but I suck at interviews as I struggle with eye contact and am never really sure what to say.


But also, as I said, I feel it best to stay put for now to clear my debt and then look elsewhere once I have fewer financial obligations.


Thanks,


PupPup

You're massively over qualified for retail. You would be better off doing a doctorate and trying to get a job in a university, at least as a researcher.

It isn't uncommon for academics to be somewhere on the Autism spectrum (often not diagnosed), so that shouldnt hold you back.