Scary Stuff!

porkpie123

Hi guys
Me and my girlfriend have just had a bid accepted on a mid terrace house in Melton, Leics. We are FTBs.
We have had our 130k bid accepted, with the vendor paying the stamp duty!
So we are both happy. but now the reality has started to kick in. we have only spoke to a mortgage advisor and she said we were fine to have a mortgage. bare with me lol!
we have a 10% deposit. i earn £15454 this year, £16500 next then go up to around £23000 once im fully qualified (i am an apprentice)
the girlfriend is a nursery nurse and she makes £11900 ish a year. i was just wondering if we would be able to survive on this sort of income once we have moved out etc! the mortgages we have been quoted are something around £600-700. We dont really know all of the outgoings each month either so a heads up on that would be fantastic!
any advice about anything would be greatly amazingly appreciated!

[Deleted User]

You'll have the following to pay each month..

gas
electricity
tv license - £11ish
council tax
phone line rental - £11ish
food bills
water

on top of that, you might have:
car running costs
sky
internet
mobile phones

Your take home must be about £1850 between you, rising to £2260 after you qualify. I guestimate you'll have about 800 +/- 100 quid left between you.

It's a bit of a wild guess, but think along those terms and try to get a source for those bill costs

PasturesNew

I agree with above, my summary would be:

£250/month household bills: electricity, gas, water, council tax, tv licence, household buildings insurance, household contents insurance, landline, broadband.

£200/month food (you can cut back on this a lot, but this will give you loads to eat!)

Then think about:
transport to work, each
car running costs (insurance, MoT, repairs, tax, replacement)
mobile phone bill
any extra TV channels
clothes
Xmas
holidays
Birthdays
household furniture, goods

Then try to save £2-5,000 as a nest egg in case something major goes wrong (car theft, loss of job, unexpected long-term illness, redundancy). It buys you the breathing space you need to just deal with it.

You indicate, however, that you don't actually have a mortgage in place. Get onto a "whole of market broker" tomorrow and get this pinned down. A lot of lenders have changed their rules in the last month and a chat about how much it might cost is a completely different ballgame to if you CAN get a mortgage.

Of course, to actually buy the house you will need to also pay out: mortgage arrangement fees, house survey, search fees, solicitor, money transfer fees.

Good luck

epz_2

firstly i would tell the vendor to drop the price by £1300 and pay £3700 for carpets, curtains and all sorts of other stuff in the house, perfectly legitimate and will save you many £1000's over the term of the mortgage.

second i would go interest only for a couple of years, sure you pay more in the long run but it beats abject poverty in your youth. my sums may be out but im guesing £120k @ 5.7% interest only will be ballpark £760 a month, say you take home £1600 after tax, it should be fine as long as you buy cheap furniture and dont have mental council tax.

franklee

You could look on the debt free wannabee board, people often post their statement of affairs there and you could use a combination of the ones that match you to make a list?

Debt_Free_Chick

Do a budget - Martin has a budget planner here

Don't just budget on what you currently spend - budget on what you need to spend. And plan "for the worst" - what would you do if one of you lost your job? What would happen to your income if you were ill and unable to work for ...... 2 months? 6 months? 12 months? :eek:

Post back if you want some help with provisional figures and definitely look at the Debt Free Wannabe board for an "SOA" to see what other folk are paying - and for ways to get the "best bang for yer buck" (horrible expression!!!)

Debt_Free_Chick

Just a thought .... are you eligible for and claiming working tax credits?

(Not my area of knowledge ...... but worth checking)

porkpie123

WOW thanks for the responses ppl!
right i will now try and answer lol
ringo and pasture - - - The figures you mention there dont seem to bad, and i have set my financial advisor on the case of getting me a good mortgage deal. another quick question though, my mar and par are dead against me moving out, thinking i havent got enough money behind me and they seem to think my total outgoings will be £1500. now can it really be this much because as you can see that will leave us with nothing! or are they just trying to scare me out of it?

epz i hear what you are saying, thats what we were going to do but the EA seemed to think doing it the way we are is alot better and would avoid the risk of the £3700 being turned down!

Franklee i have looked on that board but am struggling to find anything similar to me, and there is loads on there and i dont overly no what i am looking for lol.

debt free chick i have tried that budget planner and it wont let me do it because of unsafe macros but i will try again tomorrow when i get time.
oh and about the working tax credits i havent got a clue what they are! any advice would be appreciated!!!!!! thank you all again really helping me thank you

moneysavinmonkey

porkpie123 wrote: »

Hi guys
Me and my girlfriend have just had a bid accepted on a mid terrace house in Melton, Leics. We are FTBs.
We have had our 130k bid accepted, with the vendor paying the stamp duty!
So we are both happy. but now the reality has started to kick in. we have only spoke to a mortgage advisor and she said we were fine to have a mortgage. bare with me lol!
we have a 10% deposit. i earn £15454 this year, £16500 next then go up to around £23000 once im fully qualified (i am an apprentice)
the girlfriend is a nursery nurse and she makes £11900 ish a year. i was just wondering if we would be able to survive on this sort of income once we have moved out etc! the mortgages we have been quoted are something around £600-700. We dont really know all of the outgoings each month either so a heads up on that would be fantastic!
any advice about anything would be greatly amazingly appreciated!

Hi first of all, well done for saving 13k. that is an impressive achievement!
Going on that fact you will need a mortgage of 117k
- i'm assuming you also have money saved for all the buying costs and that these won't come out of your depost -
I reckon your mortgage will be around £750.. (you may have been quoted a little less than this before but unfortunately recently due to the problems in the credit market most lenders have put up their rates)
this is going to eat up about 40% of your combined take home pay :eek:
I don't know if this is normal but seems a lot to me (my rent is about 25% of my take home pay)


There are a lot of up front costs when you move into a new place and I just wonder if you might be better waiting a little while longer until you have got your promotion and would be in a better position to cope financially with the trials and tribulations of owning a property!

my other suggestion would be to try renting a similar property with your girlfriend first - this probably won't be as expensive as an interest only mortgage and would give you a much better idea of all your outgoings and how much money you would realistically be able to afford to pay for a mortgage

also you don't say whether you are living together at the moment (i'm just guessing you live at home from the tone of your post) - so this could be a trial run before getting a mortgage together!

porkpie123

moneysavinmonkey wrote: »

Hi first of all, well done for saving 13k. that is an impressive achievement!
Going on that fact you will need a mortgage of 117k
- i'm assuming you also have money saved for all the buying costs and that these won't come out of your depost -
I reckon your mortgage will be around £750.. (you may have been quoted a little less than this before but unfortunately recently due to the problems in the credit market most lenders have put up their rates)
this is going to eat up about 40% of your combined take home pay :eek:
I don't know if this is normal but seems a lot to me (my rent is about 25% of my take home pay)


There are a lot of up front costs when you move into a new place and I just wonder if you might be better waiting a little while longer until you have got your promotion and would be in a better position to cope financially with the trials and tribulations of owning a property!

my other suggestion would be to try renting a similar property with your girlfriend first - this probably won't be as expensive as an interest only mortgage and would give you a much better idea of all your outgoings and how much money you would realistically be able to afford to pay for a mortgage

also you don't say whether you are living together at the moment (i'm just guessing you live at home from the tone of your post) - so this could be a trial run before getting a mortgage together!

lol thanks for the response! yeah i do live at home and we havent lived together before! i will definately have to talk to her tomorrow! thanks

moneysavinmonkey

in that case I would definately advise you to rent first.. most people nowadays do this before they buy somewhere!