Budgeting for buying a new home as FTB

Chloe_L

gill15 wrote: »

Hi chloe, I'm in an almost identical position to you,same age location and roughly the same property price and salary.

My white goods are included and not a lot needs to be done however I'm planning to fully redecorate before I move in. I am hoping that everything will cost me around £5000 and I think the biggest expense will be sofa. Not replacing any flooring but do need blinds and curtains and planning to get a wardrobe built in. Also will get a decorator to do all the work.

I hope to stay in budget however in a position that if i go over it's ok. its all very exciting and can't wait to be at the buying stage for my flat!!

I know, it's exciting and terrifying at the same time! x

I's been a busy day researching everything! The only question I have for everyone is regarding insurances,

I have sourced some quotes for life cover for £7 or life and critical illness for £30, which are for 40 years, on a decreasing basis, for the full loan amount. I have also sourced quotes for home insurance which is around £30.

Does anyone else know what other insurances I should consider, and what any prices are likely to be?

Thanks.

davidmcn

Chloe_L wrote: »

I have sourced some quotes for life cover for £7 or life and critical illness for £30, which are for 40 years, on a decreasing basis, for the full loan amount.

If you're moving in by yourself and don't have any dependants, do you need life cover?

I have also sourced quotes for home insurance which is around £30.

Check whether or not that needs to include buildings cover - often flats will have a common policy arranged by the factors, so if that provides enough cover you just need to insure your contents.

Chloe_L

davidmcn wrote: »

If you're moving in by yourself and don't have any dependants, do you need life cover?



Check whether or not that needs to include buildings cover - often flats will have a common policy arranged by the factors, so if that provides enough cover you just need to insure your contents.

I had done some quotes through legal and general, and it seems they only life or life and critical illness cover and not critical illness cover on its own. None the less it would be nice should anything happen that my family could inherit my estate without the mortgage particularly given how low it is per month.

Thanks for the information about the buildings insurance, i'll check that one out.

gill15

For my flat I have contents insurance only and the buildings insurance is covered by my factor fee. Taken out life and critical illness insurance with legal and general.

glasgowdan

Well done on taking the leap and going for it. Hope the new place is peaceful and you get on well. For less than the cost of renting you'll own the flat and not be giving a landlord their mortgage payments.

I'm not sure juniordoc quite understands offset mortgages and your intentions. You will evidently be able to overpay, and an offset makes this a very easy thing to do. The chances of you still living in this flat come retirement age are very slim! Minimising repayments over a long term mean that when you pay it off early you'll have paid less interest over the life of the mortgage.

My wife bought a flat in Glasgow on her own aged 25. Made a bit when she sold it 10 years later but it was here and she was proud of her gumshin.

As far as hitting the place out goes...less than you may think. Hard furniture...buy second hand. Beds, wardrobes, drawers, tables. I don't see any sense buying new things for 3-400 quid when 50 will get you excellent used ones.

New mattress and sofa, under a grand.

Kitchen stuff could be anything but you'll get there gradually.

Your finances sound comfortable...stop being concerned and get stuck in!

getmore4less

most of the stuff has been covered

go cheap/free and cheerful to start with and build an idea of what you really want in the place once living in it.

The only thing I would go new is the mattress

don't get too much stuff if planning to decorate much easier with an empty room less stuff to move around


Be on the look out for decorating stuff, you will need white and pick up tins when on offer, light neutral shares are also a good bet for the initial paint as has been said don't go cheap with paint get the better stuff when on offer.

if you have not done decorating before the first time is about a base for the next time so don't get too hung up on colors(there is a reason that magnolia is used as a base) as you are using the first time as practice

The kit needed to get you started will be £50 max if painting (+ paint costs) maybe a bit more if a tenement with high ceilings and you need a bigger ladder.




Mortgage of 40years is fine better to go long and overpay than go short and struggle.

£118,750 @ 2%
£198 I/O
£360 40y
£394 35y
£439 30y
£504 25y
£601 20y

Any capital payments are just like saving the key is the interest is lower than renting somewhere.

The offset will give you cashflow flexibility and you can Stooze( 0% purchase Credit card for all normal spends)

The initial term is not relevant what you pay determines what it costs not the term and with the offset you have unlimited overpayments

If say after 5years you want to get the mortgage done in another 25y your payment @ 2% will be £460 only £21pm more than if you had started with a 30y mortgage .


The critical thing will be your cash flow once settled in say 4-6 months you can then review, remember these will be cheap months for fuel so plan for bigger bills come Oct/Nov.

With you cash pot in the offset you can draw down as you find stuff to populate the flat


if you really have nothing then google things like student starter pack that will give you an idea of things needed to kit a place out.

Most of the stuff will be available very reasonable to be replaced over time with quality when you know what you need and use a lot.

One thing that can be a godsend for the Solo is a decent combination microwave
You can do just about anything in one and it could be a hundred well spent, there was this great deal a couple of weeks ago

http://www.hotukdeals.com/deals/panasonic-nn-df386-flatbed-combination-microwave-black-119-99-argos-plus-10-voucher-2676796

other stuff like a kettle or toaster if you can't get a hand me down then go cheap....

rentmekid

what part of Glasgow are you buying in?

Chloe_L

getmore4less wrote: »

most of the stuff has been covered

go cheap/free and cheerful to start with and build an idea of what you really want in the place once living in it.

The only thing I would go new is the mattress

don't get too much stuff if planning to decorate much easier with an empty room less stuff to move around


Be on the look out for decorating stuff, you will need white and pick up tins when on offer, light neutral shares are also a good bet for the initial paint as has been said don't go cheap with paint get the better stuff when on offer.

if you have not done decorating before the first time is about a base for the next time so don't get too hung up on colors(there is a reason that magnolia is used as a base) as you are using the first time as practice

The kit needed to get you started will be £50 max if painting (+ paint costs) maybe a bit more if a tenement with high ceilings and you need a bigger ladder.




Mortgage of 40years is fine better to go long and overpay than go short and struggle.

£118,750 @ 2%
£198 I/O
£360 40y
£394 35y
£439 30y
£504 25y
£601 20y

Any capital payments are just like saving the key is the interest is lower than renting somewhere.

The offset will give you cashflow flexibility and you can Stooze( 0% purchase Credit card for all normal spends)

The initial term is not relevant what you pay determines what it costs not the term and with the offset you have unlimited overpayments

If say after 5years you want to get the mortgage done in another 25y your payment @ 2% will be £460 only £21pm more than if you had started with a 30y mortgage .


The critical thing will be your cash flow once settled in say 4-6 months you can then review, remember these will be cheap months for fuel so plan for bigger bills come Oct/Nov.

With you cash pot in the offset you can draw down as you find stuff to populate the flat


if you really have nothing then google things like student starter pack that will give you an idea of things needed to kit a place out.

Most of the stuff will be available very reasonable to be replaced over time with quality when you know what you need and use a lot.

One thing that can be a godsend for the Solo is a decent combination microwave
You can do just about anything in one and it could be a hundred well spent, there was this great deal a couple of weeks ago


other stuff like a kettle or toaster if you can't get a hand me down then go cheap....

Very interesting read thank you, and thanks to others for your responses.

Rentmekid - Partick - close enough to my mums (west end), my brothers (east end), and work (city centre), and good transport to everywhere as I don't drive (or have any intention!).

glasgowdan

Have you thought about places like Lenzie, Robroyston, Bishopbriggs, Stepps etc? They're also all VERY handy for town centre by bike/train/buses, super quick to the east end, west end, much better for value for money

Chloe_L

Good afternoon everyone,

I am still in the process of going the mortgage application, so I am keeping an eye on everything credit / expenditure related at the moment,

I logged into the MSE credit report today for this months update, and I have noticed a Lloyds Credit Card appearing which I paid off in 2013.

It says that £203 is still outstanding, and was last updated on 10/02/2013, and that the account is fully up to date. Back in 2013, I paid off this account in full, and I vividly remember the balance showing as zero, and the account then dropping off my internet banking screen after a year or so.

Does anyone know why all of a sudden the account would re-appear, and worryingly as though I still owe them £203?

Hope this made sense,

Thanks.

gyazo.c om/9703f999dc38efca1dd296d5f5039eac

This is a link to a screenshot showing what I mean.