predicament - help needed

will369

Hi guys,

Basically, I am in abit of a predicament, regarding living / saving.

When I was 19, I am 23 now, I moved out of my Mum and Dads house and moved in with my sister and paid her rent. 3 years later I moved into a flat with 2 friends. I enjoyed it there, but I was spending £400 a month on rent and was finding it hard to save. I earn £1200 a month. Not the best wage, but I have a job I enjoy.

2 weeks ago I moved back to my parent’s house, they are not charging me rent. The £400 I was spending on rent I am putting into a savings account to put towards a house.

On my wage I will find it very hard to get a mortgage?

I planned on buying a 2 bedroom house, and renting a room out, and charging them roughly £400 a month rent.


The other option is to buy a house using the new governments 5% scheme?

I will roughly be saving £5000 a year living at home.

Ideally I want to be moved out in 2 years, bored already living there lol J


There is a possibility that my grandparents will help with the deposit, but that isn’t guaranteed.

Maybe I have to face the fact I cant afford anywhere? But there is the 5% scheme which I have mentioned above?



Any advice will be appreciated

DevCoder

At £1,200 per month income you are really going to struggle. Try putting your income and expense into some mainstream lenders online calculators and see the results.

For example, Natwest, on your salary, no dependants, and other outgoings of £300/month (food/petrol/insurance etc) would mean they'd only lend you around £10K.

needabed

Depending on the property layout you can get a 1 bed and rent out the living room as a bedroom.

BigAunty

There are plenty of affordability calculators online that will indicate what lenders are prepared to loan you, according to your income. I think it is around x3.5 your income but could vary.

Many people only buy their first property with a partner. So even if it takes 5 or 10 years to find 'the one', you will simply have a larger nest egg, greater joint salary and more choice.

Keep on saving. Try harder - you are spending £200 a week despite having virtually no accommodation costs. Download the MSE budget planner, work through the site to understand how to slash living expenses and live more frugally and you might be able to save 50% more.

You could look into shared ownership where you part-rent and part-buy and eventually staircase up to a greater share of ownership but do look at the risks and issues with this scheme.

SO owners that post here sometimes complain about high service charges, the struggle to sell it (due to lack of popularity with the estate or the social housing landlord's inflexibility about the sale price), the way the mix of owners (i.e. largely working tenants) doesn't blend very well with social housing tenants (i.e. needy and more likely to be out of employment) as many estates have mixed tenures, the fact that there are restrictive clauses that make it much harder or impossible for the owner to let it out and move away, for example. There will be some occupiers who will reach the end of their mortgage term and have no likely way of ever owning it outright.

[Deleted User]

How old are your grandparents? Are they likely to leave you any money in their wills?

ladybee

Save lots, live frugally, and be prepared to move area to buy a house you can afford on your wage. With a good credit score tbh you're looking at around 4.5-5x your income max. Just save everything you can for a few years and it's possible. Biggest limiting factor I think is the deposit.

will369

DELETED USER wrote:

How old are your grandparents? Are they likely to leave you any money in their wills?

My nan and grandad are in their early 80s, quite fit though.

Their house is worth 1.2 million!!!

1 son
1 daughter


6 grand kids

1 great grand kid

So I hope to get some £££ when they pop their clogg lol

Yorkie1

Bear in mind that a lender is unlikely to take lodger rent into account in assessing whether you can afford to buy somewhere.

Angelicdevil

will369 wrote: »

My nan and grandad are in their early 80s, quite fit though.

Their house is worth 1.2 million!!!

1 son
1 daughter


6 grand kids

1 great grand kid

So I hope to get some £££ when they pop their clogg lol

Classy..................................................