Buying a house in 5-6 years

alcur

Hi,

I'm wondering if you can help. I am currently living in rented accomodation, where I am saving up to buy a house in 5-6 years time, after saving up a deposit.

I'm 21, earn £17,000 per year. I'm wanting to put my entire monthly wage into a savings account untouched for 5-6 years, to use this money as a deposit for my mortgage.

My parents have said they will pay my monthly rent, bills and living costs for the foreseeable future, if I can put my salary away for a mortgage deposit. My question is, when it comes to applying for a mortgage further down the line, will they ask questions in regards to my parents paying everything for me whilst my salary is going in a savings account or could I just show them statements showing my monthly salary going in every month and not being used?

I have no debt at all, own my own car outright and my only outgoings are rent, food, utilities, council tax, petrol and entertainment.

Thanks

Hoploz

I not know what prices are like in your area, but it strikes me it'd be better if your parents could give you a lump sum up front for a deposit, rather than waiting 5-6 years during which time prices are likely to rise significantly.

Mojisola

Wouldn't the money spent on the new car have been better put towards the house deposit?

Red-Squirrel_2

Its a bit of a strange setup. If your parents are willing and able to help you with a monthly amount so you can save for a deposit, it would be better for them to choose a fixed amount and pay it straight into a savings account/ISA for you that you then don't touch, while you live off your salary. Of course, you can save extra out of your wage where possible.

Living costs can vary, unexpected outgoings crop up, and at 21 without meaning to sound patronising I think its really important that you learn to budget and manage all your expenses on your own out of your own earnings before you make the huge commitment of buying a home and paying a mortgage for 25 years!

rosie383

I agree with Red-Squirrel completely. If your generous parents want to help, let them put money into a savings account for you and learn to budget for yourself.
Challenge yourself to see how much you can save every month from your wages in the meantime. If you are already paying your own bills, then start now. Once you own your own home, if things go to plan, then you will have to be a good saver to plan for those things which need to be done to your house as general maintenance, and when things go wrong and need updating. A very different prospect than renting.

getmore4less

Why 5-6 years.

net wage £14500 max lending 5*17000(£85000)

y deposit...LTV
1.14500....86%
2.29000....75%
3.43500....67%
4.58000....60%
5.72500....54%
6.87000....50%