Buy a house first, or get a new job?

ReadingTim

Owning a house ties you down geographically, especially when it comes to looking for new jobs, whereas if you look for a new job whilst you're still living at home, you're not as constrained.  Assuming the new job pays more than the old (which it needs to), you can borrow more, giving you more choice as to properties you can buy - a 2 bed is fine for you, you and an other half, but may start to get tight if kids happen.  

However, you will need to factor the time it takes to find a job, plus being in it for 6 months or so before it's worth making a mortgage application - you certainly need to be out of your probationary period anyway.  

knightstyle

New job and rent for six months in the area you are thinking of buying seems the most sensible way to go.

Frog01

Thanks for all your replies.  My job is having an effect on my mental health so I guess it’s best to look for a new one first.  

katkatmachine

My partner started her career here in the UK at 36, changed company three times and now she’s been promoted to senior level and her salary has gone really well. So yeah, it’s never too late to start again or find a job that will fit you and make you happy. Also, don’t overthink, just send out your CV and see from there. I think it would be better to get settled first in the new job before getting the house. Lastly, don’t panic. 35 is still young. That’s like miles away from 60! Even 50! Lol. Good luck.

floorspeed_2

Frog01 said:

Hi,
I'm just after a bit of advice really as I'm struggling to make a decision on what's best for me.  I used to have an old account on here years ago so I've had to re-register under a new username.  I won't be one of these posters that only posts once and you never hear from again.

I probably already know the answer to this anyway but here goes;

I'm 35, single and male and have been saving to buy a house for the last few years. As embarrassing as is it to admit, I'm still living at home.    I work full time and have saved around £40,000 altogether.  My job isn't very high paying, I'm only on £20,000 per year.  There are 2 bedroom houses in my area going for £125,000 which would suit me fine.  However, I'm still not certain if I've saved enough to be offered enough for my mortgage.  I'm going to see a mortgage broker very soon so I'll get a clearer idea then.  

The problem I'm having is that I've been with my company since I was 18, so I guess that looks good on an application.  But,  I'm unhappy in my workplace.  I've coasted along for the last few years after initially hoping to progress into management after I finish University (in 2011, aged 27).  I want to start job hunting as soon as possible but I feel, at 35 that time is running out for me to get started on a new career path.  I also feel that I'm going to leave it too late to get on the property ladder if I'm not too careful.   Ideally, I'd like to find a new job as quickly as possible,  but I cringe to myself when I tell people that I still live at home.  


So, does anybody have any advice?  Am, I better off buying the house first?  I understand that getting a new job whilst owning a home is a risky, for job security, happiness etc.  But, I can't work in the same place for the rest of my working life.   Does starting a new job have a massive effect on what I could borrow?  I've heard conflicting things from people,  some have said that it doesn't matter so much these days, and others have said that it's only self employed that would have a problem.  If anyone has any advice, that'd be great,  I know you're not here to make decisions for me but I just need to get this off my chest really.


Thanks  R

There is some great advice above from various people with different experiences. I hope you come back and reply one day with the outcome. 

ashleycollins869

I think you should consider looking for a new job first. Once are you settle in the area then you could find a house according to your preference. Many first-time home buyers are just getting started in their careers. But this does not mean they can’t qualify for a mortgage. When you apply for a mortgage, the lender wants to know that you can repay your loan. Your credit rating represents your willingness to repay while your income represents the ability to repay. The good thing is I found a top rated developer (click here to read more about it) that offer me more choices, features and location.

onwards&upwards

What kind of work do you do now and what do you want to move into?  The answers to these questions will affect my advice on the housing issue.

PhilippaG

It might be a good idea to register at Cucoon.co.uk, a site which connects people who are in the same boat so they can get on the property ladder and buy together, sharing the deposit and monthly repayment costs. Weighs up who's compatible to buy together. It's currently built around London and the South East so not sure what area you're looking, but no harm in signing up for when it expands. Hope this helps

Retired_Mortgage_Adviser

Frog01 said:

I'm 35, single and male and have been saving to buy a house for the last few years. As embarrassing as is it to admit, I'm still living at home.    I work full time and have saved around £40,000 altogether.  My job isn't very high paying, I'm only on £20,000 per year.  There are 2 bedroom houses in my area going for £125,000 which would suit me fine.  However, I'm still not certain if I've saved enough to be offered enough for my mortgage.  I'm going to see a mortgage broker very soon so I'll get a clearer idea then. 
Does starting a new job have a massive effect on what I could borrow?  I've heard conflicting things from people,  some have said that it doesn't matter so much these days, and others have said that it's only self employed that would have a problem.  If anyone has any advice, that'd be great,  I know you're not here to make decisions for me but I just need to get this off my chest really.
Thanks  R

1. For a 125k house, your current deposit + income should be more than enough (assuming no dependents or other complications in the background) to get a mortgage. 4.5x your income + deposit is a safe estimate.

2. No, starting a new job (on it's own) is not a barrier to getting a mortgage from a mainstream lender. There are lenders who will lend based on a new contract, others who require you to have started, others that need just one payslip, etc. Again, the ball park estimate is 4.5x income + deposit.

Good luck!