Looking for friendly advice as a hopeful first time buyer as a low earner

buglawton

AnxiousAdult wrote: »

Hi ViolaLass, thanks for your reply.

I have no furniture though, so I'm taking into account everything from a bed, to a TV, to kitchen appliances, right down to cutlery! I know I could buy cheaper items but would like to buy the best I can afford.

Thanks.

When I first bought a house I went to a used furniture warehouse and loaded up a van, every stick of furniture and even crockery/cutlery was 2nd hand. Fact is, I was actually short of cash flow for the first years of the new mortgage so all that frugality was essential - had lodgers from work staying too. So long as you can pass lenders affordability test and get that first mortgage, there are loads of ways to stretch the cash flow.

mrginge

You've undoubtably done well to save that level of deposit. But I will look at this from a different angle.

You live in an area where employment prospects are not great.
You have a relatively low paid, niche job with little prospect of improvement.
You are considering buying a low end property in this area at the very top end of your affordability.
Your plan for further advancement relies on finding a partner.

What happens if you buy the house and lose your job?

imo your pot of money gives you opportunity. You could invest it in retraining, use it to help moving/renting in a more appropriate area, subsidise a lower wage in a different area but with more chance of career progression...etc. All sorts of things that might mean you're still renting in five years, but with much better earning potential and long term prospects.

So, are you screwed?
Today, absolutely not. If you tie yourself to this life by buying a property, then probably yes.

jmo.

Ralph_T

It depends how they work. I believe quite a few are payment on completion. No harm in contacting them and asking if you would have to pay anything upfront. It's probably worthwhile finding a good one now and then when you do start looking for properties you will have a broker to contact to get the ball rolling. They will hopefully put your mind to rest regarding any concerns you have about getting a mortgage.

I used "Which?" mortgage advisers. They didn't want money until they started the actual application process with the mortgage lender they had advised, and I had chosen. So up until that stage, including selecting the provider and going into those details (i.e. how you'd pay, etc), was free. After that though I had to pay £250 upfront and then £250 on completion, so not particularly cheap in my book (considering they get a £1200 kickback from the mortgage provider in my case too), but also cheaper than some others out there.

*Tip: Sign up for Which? FIRST (i.e. BEFORE you ever call and make sure when you call they known you have one), which is £1 for the first month, and you save £100 on the above fees.

marksoton

AnxiousAdult wrote: »

I currently have savings of 15k, and will have 20k by the end of the year with no debts. I'm hoping to use 12.5k as a deposit, 2k for the fees, 3.5k for basic furnishings, and the remainder as emergency funds.

On the figures you're talking 3.5K is a ridiculous amount to spend on "basic" furnishing.

Thrugelmir

AnxiousAdult wrote: »

Hi Thrugelmir, thanks for your reply.

Honestly, no I haven't. I have my savings in a standard savings account with my bank. It was my understanding it would take years to benefit from this scheme though? I'm hoping to move out in around 8 months...so would it be worth it?

Thank you.

Money is money. A 25% bonus on the money saved and 4% interest on your savings is worth having.

Chocolatefund

mrginge wrote: »

You've undoubtably done well to save that level of deposit. But I will look at this from a different angle.

You live in an area where employment prospects are not great.
You have a relatively low paid, niche job with little prospect of improvement.
You are considering buying a low end property in this area at the very top end of your affordability.
Your plan for further advancement relies on finding a partner.

What happens if you buy the house and lose your job?

imo your pot of money gives you opportunity. You could invest it in retraining, use it to help moving/renting in a more appropriate area, subsidise a lower wage in a different area but with more chance of career progression...etc. All sorts of things that might mean you're still renting in five years, but with much better earning potential and long term prospects.

So, are you screwed?
Today, absolutely not. If you tie yourself to this life by buying a property, then probably yes.

jmo.

I agree with this. I went back to university and completely changed career. Best thing I ever did.

AnxiousAdult

mrginge wrote: »

You've undoubtably done well to save that level of deposit. But I will look at this from a different angle.

You live in an area where employment prospects are not great.
You have a relatively low paid, niche job with little prospect of improvement.
You are considering buying a low end property in this area at the very top end of your affordability.
Your plan for further advancement relies on finding a partner.

What happens if you buy the house and lose your job?

imo your pot of money gives you opportunity. You could invest it in retraining, use it to help moving/renting in a more appropriate area, subsidise a lower wage in a different area but with more chance of career progression...etc. All sorts of things that might mean you're still renting in five years, but with much better earning potential and long term prospects.

So, are you screwed?
Today, absolutely not. If you tie yourself to this life by buying a property, then probably yes.

jmo.

Chocolatefund wrote: »

I agree with this. I went back to university and completely changed career. Best thing I ever did.

Hi both. I know what you're saying, and I wish I could do this, but its not feasible. If i spent my savings retraining, i'd be looking at another additional number of years before I can move out. If I had any idea what I wanted to do, maybe this would help, but I don't. I completely get what your saying but there's a fear of leaving my secure job, which it is, and entering the unknown. It's not implausible I can find a better job using my skills learnt in this role, and I think that's my best option.

AnxiousAdult

marksoton wrote: »

On the figures you're talking 3.5K is a ridiculous amount to spend on "basic" furnishing.

I have nothing though, and am anticipating some decoration or renovation will be needed. To me, 3.5k is a conservative figure. I fully expect to be buying cheap items at the start but i'd like to know I have funds set aside to buy what I need to.