28, 20k Deposit - is it possible?

EthanL

Hello all!

I've been reading the forums for a while now and gained a lot of info by doing so. I really just wanted to post my current position to see if anyone can help with further advice...

I'm currently 28 living in the East Midlands area looking at the possibility of buying my first home, potentially within the next 12 months. I earn 21k a year and after many years of saving, have accumulated a deposit of 20k. Any savings from this point forward will be to cover lawyers costs, furniture, 'rainy-day' savings ect...

My outgoings are pretty minimal as I don't drive and have no debts (apart from student loan) and have a credit score within the 'very good' category.

An average sum of the online mortgage calculators seems to suggest I can borrow between 80-85k, therefore looking at property's around the 100k mark.

I'm really just looking for a general consensus from people on here, as you guys are far more clued up than myself on how possible this would be? Any tips/suggestions? Do you recommend someone is my position should be looking to buy?

Many thanks in advance!

Ethan
:beer:

ap1985

Hi Ethan,

I assume this would be for you to live in right and not for investment?

It depends on where you're looking and whether there are properties going for the 100k mark. You have to bare in mind that the online mortgage calculators may not always be correct.

Also think about any insurances you may have to take out, additional costs and bills and weigh up pros and cons as to whether you can afford it.

warby68

As long as there are properties you like for that price that need very little doing to them, it should be possible.

However you need to do a full budget for what it would cost to be a homeowner. All your bills, some repairs/renewals/emergency money and whatever lifestyle elements you need. It can be a stretch with one income. You can have a tight starting budget if fairly confident your income will rise over time. If not you need a margin from Day 1. I was struck by your comments that it took 'many' years to save your deposit yet you have 'minimal' outgoings. The two are a little at odds unless you are currently paying a large rent.