Opinions on my SOA please?

Lala2015

Muser1 wrote: »

What about paying the loan off out of your savings? Then top your savings up with the £140 finance payment. Great deposit savings.

Have you had a go on the mortgage affordability calculators? How much can you borrow? Would this get you what you need in the area you want to be in?

Thanks Muser1!

I was thinking about stopping saving for my deposit and solely focusing on the car loan as the interest is hurting me!

I went to see a few advisors. Ultimately, if I saved £40k (my aim), i could by a property for £180k with an estimated mortgage of around £550 p/m - much cheaper than my rent! :eek:

Muser1

Wow so loads cheaper than renting then even if rates start nudging up. Exciting times!

Sharon87

I would definitely pay the car loan off with your savings, whatever you're getting in interest from the savings will be less than your loan. Is there a fee for paying early? Even if there is it still may be cheaper than the interest!

If you do that, then you have more money for your savings each month.

When you buy a house you may need more than 1k emergency fund though. Right now your landlord pays for repairs in the house, in your own home you will need to pay for it. The standard emergency fund is at least a month's take home pay, as well as any for household emergency.

And don't forget about the fees of buying a house and moving costs all need to be saved up for too!

[Deleted User]

Lala2015 wrote: »

I'm not legally allowed to sell it until the loan has been paid

Are you sure about that?

If it's finance, rather than HP, the car is yours, the moment you've paid the dealer.

Lala2015

Hi Bedsit Bob,


It's a HP loan.

enthusiasticsaver

I cannot really add any suggestions other than the ones you or some of the other posts have suggested above but just wanted to say well done on managing your finances so well. You have done a great job in getting the house deposit fund up so far and I think I would do as others have suggested and pay off the car loan from your savings to save on the interest. Considering you live in a really expensive area you are doing very well.

datlex

I am guessing your salary is about £28K a year (based on trial and error on the salary calculator website). Realistically what size mortgage do you hope to be able to get with that and what properties are available in that price bracket in Surrey. I think you need to consider that.


What council tax band does your flat fall into, I am guessing because you are in Surrey you fall into band B. Make sure you are getting your single person discount.


Your mobile phone tariff seems a bit steep, try swapping to sim only once the minimum period ends.


I noticed you have nothing for contents insurance. You might want to get that.


I think personally it will be a struggle to find anywhere decent to buy, however if that is what you want go for it.

curiousralphy

Except for netflix, you've pretty much cut back already. Being realistic, with no increase in income, you have to give something up completely and there are only three options:
a. Save more, give up the car
b. Save more, give up the rental flat - by moving area or housesharing (you would have a car so you could travel to see family)
c. Give up the idea of saving more

I think the idea of being able to nibble a bit here and there is great but there comes a point at which you can't really do that anymore and something big has to go. You'll get the usual numpty on here who says you can live on £40 food a year but you seem sensible, really you're at the give something up point, which is a rubbish place because the choices are all bad....

If it helps, we've all been there.

sofarbehind

I don't have much to add but wanted to say well done on your savings. That's a real achievement given how high your rent is. I know it's painful to part with some of your deposit but I would pay off the car loan to avoid the interest. Then I'd cycle to work over the summer if you can leave at a safe time when it's light.


I think when you're living somewhere with rents so high it's better to buy as soon as you can. You'll get there faster with the loan gone. Good luck and well done.

lavandergirl_2

Can you not houseshare for a year and save £1000 every month?
You would have paid your car loan and saved for your deposit?