Debt Free and Mortgage Plan!

moliver_93

Hello, I am looking for some advice if possible!

Me and my partner are currently renting a flat – he has no debts other than car finance and I have a credit card with £4,500 and a loan with £5,000.

We have both decided that in the long term it would be best to move back in with our parents temporarily – I will be able to pay almost £800 off of my debts per month and he will be able to save around £500 a month. Ideally I only want to move home for a year maximum!

Once the debts are paid off we are hoping to buy somewhere, but the more I look into it the more disheartened I get. We are on a combined salary of around £36k and would only be able to get a mortgage of around £130,000.

My parents are able to give me around £3000 when they sell their property to get us started for our savings for a mortgage. We are then hoping to put 600 per month each into a saving account.

I suppose my main aim for posting this thread is to work out what would be best for us realistically – as I know there are different options and we don’t want to be renting forever!

Does anybody know what I can do that will be realistic without taking years and years to save up?!

Thank you!

Meatloaf1981

It all depends on where you plan on living and what kind of place you're hoping to buy. Most first time buyers get a one or two bed flat, maybe a small house if they're lucky, stay there a few years and pay down the mortgage (Overpay the mortgage as much as you can), then hope to sell it off for more than they paid for it and upgrade to the next property. £130k plus deposit of 10% (£13k) will get you a half decent two-bed place on the south coast, but maybe a shed in Londinium (Centre of the Universe).