Am I being unrealistic? FTB advice

9217niall

Evening all, just wanting some advice on this..

Nov 13 I moved into rented accommodation for 6 months with a friend, but returned home in May 14.

However, it's tight at home as was wondering what the odds would be on me getting accepted in my current predicament.

I'm 20, on a wage of around 18500 a year (goes up 3% in Oct.)

Only outgoings I have are a £40 mobile bill and £220 a month loan repayments (purchased a car, loan not linked to car).

My question is, would I be able to get a mortgage?

I've seen this property http://www.rightmove.co.uk/property-for-sale/property-39500263.html which is something like I'd want to go for,

Using the Yorkshire Bank calculator and a 95% LTV mortgage, it says I could borrow is £66,100. I have £5k in savings (not much I know) so if I borrowed 65,000 (92.9% LTV), with a monthly repayment of £377 over 25 years. FTB rate of 4.89% for three years, no arrangement fee.

What would be the odds of me being accepted for this mortgage? I do know it's probably me being unrealistic but would love to get some advice on it, thanks in advance!:)

kingstreet

Did you deduct the cost of ground rent and service charges when using the affordability calculator?

Kirstyb1987

What about money for your solicitors fees? Furniture? Council tax? Monthly bills?

Your outgoings are already up to £637 with your loan, mortgage and phone bill... Adding council tax and monthly bills, shopping and fuel are going to take you well over £1000. Can you afford this on £18,500 per year?

I am not trying to rain on your parade I am just asking if you really can afford this?

taram_2

I think you'd have better luck after you pay the car loan off, say you earn 1200/month, take 420 mortgage/fees off, 220/loan, 40/phone = 520 for bills, fuel, car tax/insurance/mot/bits falling off, food, socialising, clothing.... you get the picture.

The other worry I have you are is that you are only 20. Are you planning to have a family in a few years? Change jobs/area? Further education? Are you in a relationship? You may end up an unwilling landlord if you can't sell the flat, or unable to move out at all. Also at your age do you want to scrimp to live in your own flat or do you want to have a social life and save slowly for the next 5-10 years to afford a great place that will suit you longer term?

ACG

It would be £19k by the time he comes to complete, a touch over.

Monthly after tax this is £1300 - I would say its affordable. Hes not going to be living the high life but I dont think many first time buyers are.

I think the pay rise would counteract the management fees etc near enough?

YBS are not the easiest to deal with in my opinion. Getting the point across about the payrise to a point where the underwriters accept it could be pretty important.

Also do you have any deductions from your payslips - pensions etc? This could become important as it is pretty tight.

9217niall

Kirstyb1987 wrote: »

What about money for your solicitors fees? Furniture? Council tax? Monthly bills?

Your outgoings are already up to £637 with your loan, mortgage and phone bill... Adding council tax and monthly bills, shopping and fuel are going to take you well over £1000. Can you afford this on £18,500 per year?

I am not trying to rain on your parade I am just asking if you really can afford this?

Solicitors fees, how much would they be?
Furniture wouldn't be hard as my mums friend owns a second hand shop and ive retained majority of stuff from when I rented a flat. I was paying out around £600 + food all tolled a month then, would be tight but do-able. I know you weren't raining on the parade I just needed advice hence asking!:)

taram wrote: »

I think you'd have better luck after you pay the car loan off, say you earn 1200/month, take 420 mortgage/fees off, 220/loan, 40/phone = 520 for bills, fuel, car tax/insurance/mot/bits falling off, food, socialising, clothing.... you get the picture.

The other worry I have you are is that you are only 20. Are you planning to have a family in a few years? Change jobs/area? Further education? Are you in a relationship? You may end up an unwilling landlord if you can't sell the flat, or unable to move out at all. Also at your age do you want to scrimp to live in your own flat or do you want to have a social life and save slowly for the next 5-10 years to afford a great place that will suit you longer term?

Yeah I guess it's tight.
I work for a large company so hoping and progressing nicely, although have reconsidered uni again. Think I'm uncertain. Just wanted the advice. To be fair longer term is better but wouldn't be able to save that much if I rented as would still be paying out?

ACG wrote: »

It would be £19k by the time he comes to complete, a touch over.

Monthly after tax this is £1300 - I would say its affordable. Hes not going to be living the high life but I dont think many first time buyers are.

I think the pay rise would counteract the management fees etc near enough?

YBS are not the easiest to deal with in my opinion. Getting the point across about the payrise to a point where the underwriters accept it could be pretty important.

Also do you have any deductions from your payslips - pensions etc? This could become important as it is pretty tight.

Never lived the high life. Deductions from pay slip is a SAYE scheme £100 per month straight from slip and then I put £250 Into savings every payday. But yeah, £100 straight from my wage slip.

9217niall

kingstreet wrote: »

Did you deduct the cost of ground rent and service charges when using the affordability calculator?

Sorry didn't see this when clicking earlier as using phone. Nope - rookie error

Suarez

How long is left on the car loan?

Suarez

Also you mentioned that you were basing your figures on the asking price. Same flat sold recently for £60,000 and another a few months before for £50,000.

http://www.rightmove.co.uk/house-prices/NN16-9SD.html?backListLink=%2Fproperty-for-sale%2Ffind.html%3FlocationIdentifier%3DPOSTCODE%255E591379%26minPrice%3D60000%26maxPrice%3D80000%26minBedrooms%3D2%26radius%3D0.5

Kirstyb1987

Solicitors fee's can we anything from £700 - £2000 depending on the area.

Opinion

I'm surprised that no one has mentioned this- the OP is looking at a two bedroom flat so there is also the option to rent the second bedroom out under the Rent A Room scheme which could contribute £4,250 tax free per year towards his mortgage/bills. If you included that his idea would be far more feasible.