How much do I need to save?

BrookesAndrew

Hello,

I am 20 years old, I earn £18,500 a year and have £1000 saved up at the moment. I live in Bournemouth so prices for properties down here are quite expensive. To get a little studio it will probably cost me around £120k from what I have seen.

My question is how much do I need to save for a deposit and how much do I need to be earning? I would like to be in a position to buy by the time I am 25-26 so that gives me around 5 years to save quite a bit of money.

Any help with this would be great as me and my Mum are always talking about me getting a property but we are always guessing how much I need to save and how much I need to be earning.

Anzhelka

I think you can use one of the mortgage calculators to find this out, they are quite helpful.

nojcarter

How much are you saving at? If you can project where your savings will be at the time you are 25 then you'll have a better idea of the sort of deposit you'll have available by that time.

5 years as well is such a long time and things can change quickly, your salary alone would probably mean you'd struggle to get a high LTV but who knows what position you'll be in by then.

Keep saving as much as you can, live within your budget and make smart decisions when it comes to any borrowing such as ensuring you don't miss payments and it'll work out............all the things I didn't do might I add!!