Buying property as a single person - am I crazy?

getmore4less

what's your rent?

Compare that to the interest on the debt.

any capital paid on the mortgage is savings.

compare the interest rates on the various LTV to see the cost of keeping back cash.

eg looking at first direct fee free. 2y fix

90% 2.44%
85% 1.89%
80% 1.84%
75% 1.69%
60% 1.59%

£250k purchase paying £800pm interest cost over 2years.
1. 80% LTV 1.84% £200k mortgage £50k cash interest £7,149
2. 85% LTV 1.89% £213k mortgage £37k cash interest £7,847

Extra cost over 2 years £700 less any interest on the £13k savings

after 2 years amount owing and LTV before HPI
1. £187,950 75.2%
2. £201,650 80.8%

Once settled in you could overpay if it becomes clear the savings are more than needed.

75% LTV after 2 years is a realistic target for both options .

goodwithsaving

May I direct you to this thread: https://forums.moneysavingexpert.com/discussion/5645069 This is exactly why, if unmarried, it is better buying as a single person.
For those reading this thread who may be buying with a partner, this is why Deeds of Trust (however unromantic) are imperative for unmarried couple purchasers.

Good luck and just remember, at worst you sell in a couple of years or so. Instead of wasting money on rent for which you get nothing back, you'd have paid off a small bit of capital (as above poster says) and, most importantly had stability, learned a very good life lesson in owning your own place and hopefully had an element of freedom in decorating etc - something you can't do in a rental :-) and it'll be YOURS and yours alone. You should be proud.

bobobski

Another single buyer here, although I am right at the beginning of my journey so not a lot further than you. I won't bore you with the details but I'm buying a lot earlier than I had intended and using my tiny emergency fund as part of the purchase costs so I have arranged a bridge loan with a trusted friend to compensate for the lack of emergency fund. For the first 6 months after I buy, I may borrow up to £x from said friend at y% per annum pursuant to z repayment terms. This is for situations like the boiler breaking down. During this period, I will be building up my own emergency fund that at least matches the amount of the bridge loan. If £x isn't enough, I can go down the more conventional routes of credit cards, personal loans etc. Maybe you have a family member or friend who is willing to do this for you? The key for us is that friend can afford to set £x aside for me for 6 months and that y% per annum beats the interest rate they otherwise would have been earning, to make it worthwhile for them. But they are also a very, very well-trusted friend, which makes it less risky for me to rely on this.

Long story short, you need to be able to cover the "ancillary expenses" of purchasing a home, but the emergency fund can be dealt with in other ways in the short term if necessary. In fact, if you have really nice family/friends, you could even borrow the ancillary expenses. Even further, you could borrow some of the deposit if your lender lets you do so (I am, and they are).

If you want to buy, you'll find a way - at the time it's right for you.

Good luck.

Harryp_24

GoodnessGraciousMe wrote: »

Hi everyone,

So I have decided to bite the bullet and make solid plans to start looking (and buy) a house towards the end of the year/early next year. I have chosen to wait as I need to save up some more money to cover stamp duty, legal costs and other expenses.

However, I must admit that I am scared. Actually, petrified! It will just be me buying and the plan is to buy a 2-3 bedroom house for less than £250k and rent a bedroom to a lodger to supplement my income. I am hoping to get a mortgage for £200k with monthly repayments no more than £800.

I have done my calculations based on a salary of c. £45k and can afford to pay the mortgage and bills by myself in addition to the increase in travel costs but I cant help feel like I am getting in over my head with home ownership.

I have no debt or other financial responsibilities but am not sure if my disposable income is enough for me to be able to care for a home. I know I couldn't afford to stump up £10k for repair work if it came up; what would I do then? Borrow money?

I guess I am trying to get some insight into how much I might need to spend in addition to the mortgage and bills to care for my home. How do people deal with unforeseen repair work or other expenses? What other expenses/costs should I be aware of? How much should I save per month to cover unforeseen costs?

Thanks

i hope not because i completed 3 weeks ago on a £190,000 home as a single person! I still havnt moved in due to how much renovations there were. Once you pull one thing down it exposes 3 more issues to fix.

The only true problem i have is if i lose my job im pretty screwed. heres to hoping everything goes well!

sevenhills

I am single, 55 and buying my council house. I hope it will be a 12 year mortgage for £35k, similar payments to the rent.

00ec25

with respect OP you have a good salary, no debts and no family. That puts you in a stunningly better position than many people who have houses yet still manage to support families and kids.

Why are you so "petrified" of what, to many, is simply a perfectly normal step in life? Is there perhaps some other underlying fear?

GoodnessGraciousMe

Hi everyone!

My current rent is c. £800 and I live quite comfortably. I have decided to reduce my disposable income to what it would be when I become a homeowner, for the rest of the year. This will help me budget.

In response to one of the questions, I guess I am scared of buying because its a huge responsibility and I am single with no one to turn to for financial help. I have credit cards but don't want to get into increasing amounts of debt.

Also, I am scared that home ownership will mean no more holidays and spending the rest of my single life missing out on fun with my friends (I know it sounds silly).

I am hoping to have a contingency fund of £10k. I hope that's enough.

For those of you who are single homeowners, can you please tell me how much you spend on bills monthly?

I am considering taking in a lodger. Can anyone tell me their experience with this? Did the good outweigh the bad? Would you recommend it?

Red-Squirrel_2

GoodnessGraciousMe wrote: »

For those of you who are single homeowners, can you please tell me how much you spend on bills monthly?

What's your current situation? If you're renting alone your bills won't be all that different, the only extra one really will be your buildings insurance (and life/critical illness cover if you feel you need it).

jamels2

Have you considered buying a property to rent out while still renting yourself? I think its cakked let to rent. It would mean you are on the property ladder but arent tied to the one property/location.

pollyanna24

Another single owner here, although it didn't start off that way, but 11 years down the line and I have a similar mortgage to what you're going to get, but like others here have said, on a lower salary and two girls under the age of 10 to boot.

If I can do it, anyone can! Go for it, good luck.

Billswise:-

Council tax £100 (spread over 12 months)
Water £36.53
Energy £89
Tv licence £12.12
Sky £19.29
Broadband £5
Line rental £17.09
Phone £29

Think that's all the householdy type bills (haven't got access to spreadsheets, but house insurance and car insurance I pay off in full)