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1st time buyer, can't borrow enough money

edited 30 November -1 at 12:00AM in House Buying, Renting & Selling
94 replies 8K views
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  • oli356oli356 Forumite
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    gary83 wrote: »
    Your parents probably didn't buy a large house in Berkshire on a single income when they were 25. the house you were brought up in & live now was probably the results of their lifetimes work. you're only 25, still young, everybody has to work up to something, that's where the initial compromise of a different location, smaller starter home or flat, rather than just expecting to straight away buy a large house within a 3 mile radius of your parents in Berkshire.

    I don't think I'd agree with suggesting you stay at home for another 3/4 years Paying £300 board on a 50k salary, everyone needs to spread their wings and grow up at some point. Would anyone really want to be approaching 30, professionally obviously successful but still living with mum & dad? What would mum & dad think about constantly supporting a successful 30 year old?
    Yep, of course they didn't, especially on my dads side they weren't well off. So hard work and many decades later and here they are. The 3 mile radius thing isn't important, of course I don't want to be 2 hours drive from my work either, but expanding further than 3 miles is 100% doable.


    For now I don't think they mind it.... I would be more concerned though as the years ago by (and already am a little bit) ... especially whilst approaching 30, it would be rather embarassing to tell people, so I do fully agree with you.
  • oli356oli356 Forumite
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    Have just got a first time buyer a 250k mortgage on a 50k salary - that plus 50k of your deposit would get you to 300k
    This is very interesting to hear, whilst in reality my base salary is a few grand under the 50, bonuses (twice a year, but not guaranteed) would put it over 50. But even still, using the multipliers I always hear people go on about (4 - 4.5%), in your case at least weren't accurate.
  • JayRitchieJayRitchie Forumite
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    You earn good money for a 25 year old. How do you see your salary in 3 years time? I'd generally go for a flat in your position (somewhat dependent on type of work) but it might be worth hanging on for a pay increase.
  • TadleyBaggieTadleyBaggie Forumite
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    Which part of Berkshire, I live just over the border in Hampshire towards Basingstoke and it's certainly possible to get 2 bed flats for under £200K.
  • oli356oli356 Forumite
    169 posts
    100 Posts Name Dropper
    JayRitchie wrote: »
    You earn good money for a 25 year old. How do you see your salary in 3 years time? I'd generally go for a flat in your position (somewhat dependent on type of work) but it might be worth hanging on for a pay increase.
    Hard to say, had 2 increases last year, from 33.x to 43.x and then another to where i am now at 47.x, though moving forwards I am unsure what and when the next would be... these caught me by surprise.

    Which part of Berkshire, I live just over the border in Hampshire towards Basingstoke and it's certainly possible to get 2 bed flats for under £200K.
    Office is in Reading (not central), so that naturally is the area I've been looking at (need to expand out).
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  • steampoweredsteampowered Forumite
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    You can often borrow up to 5x salary.

    Borrowing £250k plus £60k of your cash would get you a £310k property, with £20k left in the bank to cover costs and emergencies.

    Have a play around with https://www.moneysavingexpert.com/mortgages/best-buys/.
  • yksiyksi Forumite
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    Assess your options. We all want the world but can't have it, so we look at what we could have and we think about whether we could make it work.

    - Move 30 minutes away and get your starter 2bed home, would this work, would you get a lodger in to help you save money, could you cope with the travel time
    - Move 10 minutes away and get a flat, could this mean a smaller mortgage that you pay off faster, could you deal with moving house again in five years' time? I'd take a long hard look at this one, you're not being very realistic to expect to move into your forever home at 25, what happens if you meet a partner, in five years' time a 2bed house might be too small anyway!
    - Move across the country and buy something outright, would you want to relocate, is your line of work only present in Berkshire, do you feel brave
  • artyclartyartyclarty Forumite
    192 posts
    Fifth Anniversary 100 Posts
    My sister works just outside Reading. She has gone from lodging with our grandfather in Fleet, to lodging in Calcot but finally ended up in Basingstoke.



    She has just exchanged on a flat in the city, a 1 bed flat 5 minutes from the station for £150k, so well in budget. It was a compromise as she wanted a 2 bed, but that's more the £200k+ range



    If you don't have a car, the commute is about 20 minutes direct by train (albeit a very busy train!).



    I do think your choice will be flat, flat or flat unless you are going to move a lot further out. Good luck though!
  • sgunsgun Forumite
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    oli356 wrote: »
    Office is in Reading (not central), so that naturally is the area I've been looking at (need to expand out).

    Earley, Newtown? My sister lives in Reading and that's where everyone started out if they were on a low budget (crazy to say that, £280k got me a rural large 3 bed detached with land up here in Northumberland). Now I never minded Newtown (it has a couple of decent pubs) but I do get that it isn't everyone's cup of tea. However, if you want a house rather than a flat you might just get one there. Of course, it isn't an area you would boast about living in but then most FTB have to start in the ropier areas.
  • JacquelyneJacquelyne Forumite
    17 posts
    I bought my first flat 6 years ago. It was a very small (302 sq.ft) studio flat in a very expensive part of surrey but it needed a lot of work. It hadn't been updated in over 40 years and I got it for a good price. I had a minimal deposit of 10% and I stretched myself to the maximum amount of mortgage. I spent £10k fitting a new kitchen and bathroom, upgrading the electrics and on general redecoration and I was so proud of myself. It was my own home and I loved living there. Some family members had tried to put me off by telling me that it was a bad purchase and that I would never be able to sell it on because no one would want to buy such a tiny studio flat. However, there was nothing else that I could afford at the time and it was really the only way I was ever going to get on the property ladder in the area I live in.


    I sold it just under a year ago for £65k more than I bought it for and it allowed me and my partner to buy our forever home - a 3 bed house in the same area of Surrey. It was the best decision I ever made.
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