Could I afford to buy a house?

wiggywoo9

Ok so I've got a good stable job, earning £25k. I have a 6 year old son that I support alone. We currently live in a council flat.

I have around £2.5-3k in savings for a house. I'm well aware I need a lot more than this. I have around £300 leftover each month. Only debt is a credit card.

Would I be able to buy a house? I'd really love a place of our own. We are in the Midlands

Whoknowskt89

Hi! Your best bet is to head over to the mortgages and endowment board as there is generally brokers who could give you an indication but I'd recommend also posting childcare figures and debt.

There are also sites you could try to get an indication with for example
https://www.santanderforintermediaries.co.uk/calculators-and-forms/affordability/

http://www.nationwide-intermediary.co.uk/calculators/aff_calc

Good luck with your saving for a house :-)

always_sunny

Everything is possible, it depends on where and how much.
If you got good credit and the amount is right, it can be possible. You can check your credit score for free as a good start too. Check online mortgage calculators too.

dannyjebb

Some people won't agree, but try shared ownership? Allows you to get started with a lower deposit, the money youre paying each month goes towards paying off a mortgage and gaining you some equity. You pay a small amount of rent on the unowned share. It has worked well for us and we now have enought equity to buy our own place. You can usually also buy extra shares in the house/flat upto 100%

Red-Squirrel_2

Not yet, but depending on where you are in the country, maybe one day in the not too distant future!

If you've got a secure council tenancy, don't even think about giving that up for a halfway solution like shared ownership though, stay put and save. With affordable rent and no sword of Damocles hanging over you that you could get a section 21 every 6 months, you're in a great position to save.

Is your son's dad around? Does he pay any maintenance? Are you getting all the tax credits etc. you are entitled to?

Rosemary7391

Have a look on https://www.rightmove.co.uk and/or local estate agent windows and see what sort of amounts houses that you like are going for? You'll likely need a 10% deposit, plus some money for fees. This gives you an indication of how much you might be able to borrow:
http://www.moneysavingexpert.com/mortgages/how-much-mortgage-borrowing#results

But circumstances can change and you can make them change for the better - so if you're not earning quite enough now, still keep saving, it'll always stand you in good stead

AnotherJoe

I"m not sure its the right thing for you at the moment, you have a secure tenancy, no one will evict you, low costs and no massive unexpected maintenance bills to come.

The amount you have saved is about enough for the expenses of buying, you'd need probably 10% deposit, plus dont forget the extra expenses of being a house owner, such as being wholly responsible for maintenance, which at the moment is covered for you so you'd need maybe another £5k aside for that plus perhaps another £5k for emergency money in case of losing your job.

If your location isn't good then I sympathise, but financially all you can do is keep saving and also consider how you can increase your income. How much would a house cost where you are now, because it would need to be perhaps £100k-£120k or so, would moving to a lower cost area be feasible if that price range doesn't exist where you are now?

If your location is good, then I'd say you would be better off staying as you are for the time being

Mojisola

wiggywoo9 wrote: »

Ok so I've got a good stable job, earning £25k. I have a 6 year old son that I support alone. We currently live in a council flat.

Red-Squirrel wrote: »

If you've got a secure council tenancy, don't even think about giving that up for a halfway solution like shared ownership though, stay put and save. With affordable rent and no sword of Damocles hanging over you that you could get a section 21 every 6 months, you're in a great position to save.

So good to hear that you are settled and looking forward to the future.

For the moment, I'd agree with Red-Squirrel - your council tenancy gives you great security and you can save for the future.

phillw

wiggywoo9 wrote: »

I have around £2.5-3k in savings for a house. I'm well aware I need a lot more than this. I have around £300 leftover each month. Only debt is a credit card.

Would I be able to buy a house?

You probably need to wait three years, saving £300 a month before considering it.

The credit card is more important in the short term.

gettingtheresometime

Mojisola wrote: »

So good to hear that you are settled and looking forward to the future.

For the moment, I'd agree with Red-Squirrel - your council tenancy gives you great security and you can save for the future.

Totally agree with Mojisola - you've not only turned a corner but are racing down the straight!