Am I being sensible

DD265

Would you be a first time buyer and under 40? If so, look into a Lifetime ISA. You can pay up to £4k a year in (higher than a H2B ISA) and you can do it in a lump sum. You need to have had the ISA for 12 months before you can use it to buy a home. My husband was 'late' opening his, so he's gone down the H2B ISA route and so we're missing out on a fair chunk of free bonus.

If you are eligible, there's a table on here that might help you decide if that's the right course of action:

https://www.moneysavingexpert.com/savings/lifetime-isas/

This would give you the option to pay £4k in before April 2019, then April 2020 and April 2021. In the mean time, you could use some of your current savings to get that loan paid down.

pusb

Thank you for the advice everyone, its something I will take on board and look into

determined_new_ms

Exodi wrote: »

My 2¢;

a) stop doing the lottery, it's essentially a poor tax and £18 is a significant amount to be throwing into a bonfire every month.
b) it seems absolute madness to me you have a loan for over £10,000 at 8.6% APR and simultaneously have savings of £5500 at likely 1% interest., just ponder the concept.. again, throwing fistfuls of money into a bonfire every month.
c) I know you're seeking Independence but if you father hasn't expressed any urgency for you to leave, I really wouldn't rush to, especially as you're saving £500-1000+ a month vs those that rent.

I estimate you earn around £24,000 p/a, typical mortgage lenders might offer up to £108,000. You'd have around £15,000 (£18,000 inc bonus) in your HTB by end of 2021 for deposit, I won't include savings as you still have a £10,000+ debt to clear. I think if you were to browse Rightmove, you'd have trouble finding much for £126,000. You'd also have an LTV of about 17%, naturally you'd save a lot of money in the long run if you could get this to 25+%.

People are usually keen to move out because 'they're paying somebody elses mortgage' but that's not the case for you and to be frank, £100 for Gas, Water, Electric, TV License AND Council Tax is an absolute steal, the council tax on it's own would be more than this, you're in a very advantageous situation that I'd be reluctant to end any time soon.

I agree you could stay there as long as it works for you, save and if you're lucky be in the position to buy outright or with a very small mortgage. The stuff of dreams!

Little_Miss_Winner

Exodi wrote: »

My 2¢;

a) stop doing the lottery, it's essentially a poor tax and £18 is a significant amount to be throwing into a bonfire every month.
b) it seems absolute madness to me you have a loan for over £10,000 at 8.6% APR and simultaneously have savings of £5500 at likely 1% interest., just ponder the concept.. again, throwing fistfuls of money into a bonfire every month.
c) I know you're seeking Independence but if you father hasn't expressed any urgency for you to leave, I really wouldn't rush to, especially as you're saving £500-1000+ a month vs those that rent.

I estimate you earn around £24,000 p/a, typical mortgage lenders might offer up to £108,000. You'd have around £15,000 (£18,000 inc bonus) in your HTB by end of 2021 for deposit, I won't include savings as you still have a £10,000+ debt to clear. I think if you were to browse Rightmove, you'd have trouble finding much for £126,000. You'd also have an LTV of about 17%, naturally you'd save a lot of money in the long run if you could get this to 25+%.

People are usually keen to move out because 'they're paying somebody elses mortgage' but that's not the case for you and to be frank, £100 for Gas, Water, Electric, TV License AND Council Tax is an absolute steal, the council tax on it's own would be more than this, you're in a very advantageous situation that I'd be reluctant to end any time soon.

Amen!! fantastic advice.

:T

Fireflyaway

Go for it! Looks like a great plan and if you can take advantage of low living costs now is the time to do it and get it out the way quick.
You have allowed a buffer so even if the unexpected happens you are ready. Make sure you chop up those credit cards!