FTB Mortgage Advice needed

Jaychan

Hi ladies and gents,

Just a quick few questions.

Me and my partner have managed to round up £20k for a deposit and we have a combined earnings of £53k and we are looking to buy a 2 bed flat. But due to London prices being sky high I'm not certain a £200k mortgage would be do-able or not? Quick online comparison showed it totalling approx 1.1k mortgage per month not including the rest of the bills on top :shocked:

How much are we likely to be approved mortgage wise and what would be the most we can stretch to without literally eating on beans on toast with that kind of budget in mind?

Anyone mind doing a quick run through of usual costs on a monthly basis so I have a fair idea how much to keep in mind on roughly total outgoings aside from the mortgage itself?

I.e

Mortgage
Home insurance
Council tax
Total bills
etc

Also would a mortgage broker be the way to go in this instance? and roughly legal costs of proceeding with buying to keep in mind?

Thanks

hounslowfish

With your level of savings and income I'd look at shared ownership. It will ne a bit of a stretch to buy outright I'm afraid. Shared ownership gets a bad rep in some parts, but it worked for me, allowed me to buy outright a few years down the line when my finances were stronger and got me on the housing ladder.

But I'm not a broker or expert! Call a fee-free broker (e.g. London and Country) and they can give you a lot of help and give you a clearer idea of what you can borrow.

hounslowfish

By the way, I'm surprised you think 1.1k per month for a mortgage payment is a lot - in London it isn't! Indeed you'd struggle to rent a 2-bed flat anywhere for that little!

ViolaLass

Why not try renting/living away from home for a bit then you can discover these things and how you feel about them?

Jaychan

Thanks for the advice so far all. Atm I am currently living away from home. Rent is going up yet again. But will look to seek fee-free broker to see my options.

lovehackney

Hi,
I own a one bed flat in London. Example costs, based on two people sharing, per month:

Mortgage (whatever your mortgage is!)
Council tax ~£100
Internet / phone ~ £22
Gas ~ £25
Electricity ~ £30
Water ~ £25
Contents insurance ~ £15
Life insurance ~ £15

Other costs (if you are buying a leasehold property)
Ground rent ~ £250/ year (but this can vary wildly)
Service charge ~ £500/ year (but can also vary wildly)

Hope that helps.

ViolaLass

If you're currently living away from home, why don't you have some idea of these costs already? (I could give you mine but that's only so helpful, you might spend more or less than me)

hounslowfish

lovehackney wrote: »

Hi,
I own a one bed flat in London. Example costs, based on two people sharing, per month:

Mortgage (whatever your mortgage is!)
Council tax ~£100
Internet / phone ~ £22
Gas ~ £25
Electricity ~ £30
Water ~ £25
Contents insurance ~ £15
Life insurance ~ £15

Other costs (if you are buying a leasehold property)
Ground rent ~ £250/ year (but this can vary wildly)
Service charge ~ £500/ year (but can also vary wildly)

Hope that helps.

Off topic but where do you get your contents insurance for 15 pounds per month. I pay 35!

lovehackney

First Direct - don't know if it makes a difference that they're my bank as well, or maybe I just don't have much to insure!

hounslowfish

Thank you. They are my bank too. Didn't know they did contents only insurance. Will give them a call.

Jaychan

ViolaLass wrote: »

If you're currently living away from home, why don't you have some idea of these costs already? (I could give you mine but that's only so helpful, you might spend more or less than me)

It's generally because I'm paying rent for a shared premises that includes all bills paid inclusive in the rent already. So there is no breakdown on costs per month