Reality Check: Is this feasible?

MoMoneyMoProblem

So I am looking at buying a house and I need a sanity check on my finances.


Savings: 9.5k
Savings per month: +£900
Income: 32k
Monthly income: £1,800 (5% pension contribution + £120 in student finance already taken off)

What I am looking at is getting a house for around 130k max, or a flat for 120k as a first time buyer in West Yorkshire.

Ideally, the plan is to get a house and so my finances would look like this:

Deposit: 13k
House Price: 130k
Survey costs, legal fees etc: 2k + 1.3k stamp duty.
Mortgage: £720/month
Bills: 300/month


Spare money for food/living in general: ~800/month.

That's all quite messy but really I just need a quick reality check. My aim really is to rent out a room or two in the house which massively changes the finances, but I'd be insane to rely on this.

bagpussbear

Your workings out seem ok to me, though don't forget to factor in money for furniture, decoration etc.

But one thought occurred to me (I live in West Yorkshire) you can get a flat for much less than £120K, why not do that and you wouldn't need to rent out a room as your mortgage would be less and thus outgoings lower.

stator

Why not buy a house slightly under £125k and avoid stamp duty altogether.

Based on your salary I think £130k is near the top of the amount you can get.

You might as well apply for a mortgage agreement in principle and see what they say

MoMoneyMoProblem

bagpussbear wrote: »

Your workings out seem ok to me, though don't forget to factor in money for furniture, decoration etc.

But one thought occurred to me (I live in West Yorkshire) you can get a flat for much less than £120K, why not do that and you wouldn't need to rent out a room as your mortgage would be less and thus outgoings lower.

Nope, not in leeds. You're looking at 120k minimum (at least in the center).

MoMoneyMoProblem

stator wrote: »

Why not buy a house slightly under £125k and avoid stamp duty altogether.

Based on your salary I think £130k is near the top of the amount you can get.

You might as well apply for a mortgage agreement in principle and see what they say

I did get accepted when I had 6.5k as a deposit in principle.

But yeah, it's less about what they will get and more abotu what will be a problem with me and how much money I need to live on.

stator

Given what you've said it seems feasible. How easy would you find it to cut down on your non-essential expenditure if the worst happened?
Do you have any insurance that might protect you if you got sick / lost your job?

MoMoneyMoProblem

stator wrote: »

Given what you've said it seems feasible. How easy would you find it to cut down on your non-essential expenditure if the worst happened?
Do you have any insurance that might protect you if you got sick / lost your job?

I have 10£/month income protection which gives me 700/month if it comes to it.

I have no car, and not much else I have to pay (no debts, I pay off my CC in full every month)

bagpussbear

MoMoneyMoProblem wrote: »

Nope, not in leeds. You're looking at 120k minimum (at least in the center).

You said West Yorkshire, not Leeds I work in Leeds and live 10 miles out - have you considered doing that, and getting better value for money on a flat?

trailingspouse

Bingley - 20 minutes in to the centre of Leeds by train.

Our house (two minutes walk from the station) cost us £225,000 just over a year ago. And it's HUGE (4 storeys).

If you want to live in the centre of Leeds, that's your choice, but if you're finding city centre properties too expensive then you need to re-think and keep an open mind. And if you bought somewhere cheaper, you could also afford a car!