Have a deposit.. Still sturggling to afford to buy?

Lala2015

Hi everyone!


After hours... days... scrolling through the threads on this forum, I'm wondering if I'm missing something in regards to my saving goal!


I've mentioned before on another forum/thread - I am recently single, 26.
I was living with parents until I was 24. Since then I rented a flat with my ex partner and now I rent a flat alone.
(Just to confirm, I did not leave by choice, so moving back home is not an option).


I live in Surrey... (I can now hear the posts rolling in about how this is a pipe dream lol!:D)
Basically I have a £32k deposit saved. Obviously now I only have my sole income (I bring home £1836 p/m after tax).


My aim is to buy when my tenancy is up - January 2016.
I spend, what feels like forever, searching rightmove, onthemarket etc. and I am subscribed to every property page and agent under the sun!


All I want is a little ground floor maisonette/flat for my kitten and I to call our own & so I can get my first foot onto the property ladder.
I'm seeing posts where people have a 5% or 10% deposit and are getting there, yet I have a bigger deposit and am really struggling to get anyone to lend me an acceptable amount of money


I understand Surrey is an expensive area to live in, but I work here and my family and friends are here.
Surely this must be possible?


Welcome to any advise or criticism - anything whatsoever that could help me!


Thanks in advance all

Dan-Dan

What do you term as `an acceptable amount of money` ?

Lala2015

Well, as I said, I'm talking about Surrey and I understand it is more expensive than other areas of the UK, but...


With a deposit of £32k, I'm surprised to learn that apparently I will not be lent more than £120k... so that figure plus my deposit means £152k...
In Surrey, that won't get me a shed!
How are first time buyers surviving in Surrey?

Dan-Dan

you have answered your own question though , would you like someone to lend you more that that ?
What about responsible lending?


Have you thought about shared ownership

Pixie5740

The issue might not be your deposit but your income. I'm guessing from your net pay that you're on approximately £28k a year...?

Your savings of £36k (which will need to cover deposit, SDLT, solicitor's fees, etc, so your actual deposit will be less) if taken as a 10% deposit would mean a purchase price of £360k and you just don't earn enough to get a mortgage of £324k.

If you have no debts then, using Nationwide's mortgage calculator, you could borrow £133k. Add that to your savings and does it give you anywhere near enough to buy anything in Surrey?

Pixie5740

We cross posted.

There are propties being advertised at £160k and less on Rightmove that are in Surrey so it is possible.

Alternatives are to increase your income or look into shared ownership.

Lala2015

Pixie5740 wrote: »

The issue might not be your deposit but your income. I'm guessing from your net pay that you're on approximately £28k a year...?

Your savings of £36k (which will need to cover deposit, SDLT, solicitor's fees, etc, so your actual deposit will be less) if taken as a 10% deposit would mean a purchase price of £360k and you just don't earn enough to get a mortgage of £324k.

If you have no debts then, using Nationwide's mortgage calculator, you could borrow £133k. Add that to your savings and does it give you anywhere near enough to buy anything in Surrey?

Thanks Pixie5740 - I think you're right & this worries me because where I am, £28k (yes, you were right), is the 'higher end' in terms of salaries.


I've been looking for jobs on a higher wage with no joy - well, not unless I commute into central London daily, which I am definitely not going to do as it would not be worth my final salary!


I have no debt & never have and my £32k is not inclusive of what have saved for solicitors, legal fees etc. I've separated the two out so my deposit is purely £32k.


£133k plus my deposit gives me £165k... Still not enough for even a flat.:eek:


I joke, but I do feel genuinely deflated and that there is no 'light at the end of the tunnel', especially since I've worked so hard to save this!

Pixie5740

What about this shared ownership property in Walton-on-Thames?

http://www.rightmove.co.uk/new-homes-for-sale/property-48150103.html?premiumA=true

Lala2015

Thanks Pixie5740,


Here is where I fall down I guess:


In an ideal world, I'd be on the ground floor because of my kitten. I had him when I was in an apartment block and it was petrifying.
The only other 'want' I am looking for (as I accept that being a sole earner will leave me very strapped for cash), is a small private garden. (Again, kind of for the kitten, but also for me to spend my time in when I'm fed up of staring at the 4 walls).


Too much too ask as a first-time buyer?

Pixie5740

You just need to cut your cloth accordingly but you already know this. Are there any cheaper areas of Surrey you would consider living in? I don't know Surrey at all so I have no idea how property prices in Walton-on-Thames compare with other parts of the county.

Lala2015

There are, but I'm in a situation where if I move too far afield, the journey to work again would not be worth my wage as I'd be eating this up in petrol