Wait to save up more money, or buy a house sooner?

[Deleted User]

I bought my first house at 18 and always taken risks. Sometimes Ive had 0 in my savings and sometimes £100k 
At the moment its the latter figure and thats all going to go when I get my BTL so I’ll be down to zero - which is scary but oh well lol 

I couldnt have waited 3 months let alone 3 years 

hazyjo

Play around with some calculators online. Will a 20% deposit over a 15% one make much difference?

rabbithopper3

hazyjo said:

Play around with some calculators online. Will a 20% deposit over a 15% one make much difference?

I’ve just done some calculations, 15% deposit on a £180k house would be £679 per month, whereas 20% deposit would be £639.
Do you think that’s a substantial difference to save more for the 20%, or just leave it, and save up for the 15%? In one year it’s £480 difference I would be paying off.

benbay001

The difference is probably smaller than the (most likely)  house price growth. 

getmore4less

happinessxyz said:

hazyjo said:

Play around with some calculators online. Will a 20% deposit over a 15% one make much difference?

I’ve just done some calculations, 15% deposit on a £180k house would be £679 per month, whereas 20% deposit would be £639.
Do you think that’s a substantial difference to save more for the 20%, or just leave it, and save up for the 15%? In one year it’s £480 difference I would be paying off.

The plan is to save 20% deposit (so about £33-£36k), and additionally have around £4k for fees, £7k for emergency fund, and £6k for furniture. I have estimated that we will be able to apply for a mortgage by April 2023

lets estimate £2,600pm coming in together.

trying to get to £53k  over 3 years that's £1500pm

how much do you have saved already?

what is your saving rate?

early 20's go for 35/40year term

£144k 80% LTV  1.5% 35y £440pm 40y £400pm

£153k 85% LTV 2%% 35y £500pm 40y £460pm

if they come back while saving...

£162k 90%LTV 2.5% 35y 580pm 40y £540pm

Drop the £6k to furnish the place beg for stuff from people upgrading

rebuild emergency from income

fees £2k should be enough.

if 90% mortgages come back savings needed drops to £20k ish maybe £25k for some spare. 

With £2k spare after the mortgage you have enough to get this started sooner than 3years. 

Which bit of Linconshire? 

there are over 1300 3 bed+ upto  £150k  100+ of those are  4beds+ all over the county

At  £180 budget there seems to be plenty of 4 beds  take on lodger(s) for a year to rebuild savings  rather than save for 3 years and be sharing anyway.

You will be able to skip a house move if you go bigger.

seradane

happinessxyz said:

atrixa said:

Are you currently renting? If so, I would check how much in rent I'd be paying out over the next 2-3 years as it might be worth it to buy sooner on a smaller deposit.

No we both live at our parents houses, about 10 minutes away from each other.

Hate to be the pessimistic one, this is a surprisingly positive thread for once haha. But -

Have the two of you ever lived together? It may be worth renting somewhere for a year before you plan to buy to get used to living together. Nothing scuppers long-term financial stability than having to sell a house within a year or two at a loss because you've broken up. Not to say that you definitely will but just good to answer that question before you put all your savings on the line!

rabbithopper3

getmore4less said:

happinessxyz said:

hazyjo said:

Play around with some calculators online. Will a 20% deposit over a 15% one make much difference?

I’ve just done some calculations, 15% deposit on a £180k house would be £679 per month, whereas 20% deposit would be £639.
Do you think that’s a substantial difference to save more for the 20%, or just leave it, and save up for the 15%? In one year it’s £480 difference I would be paying off.

The plan is to save 20% deposit (so about £33-£36k), and additionally have around £4k for fees, £7k for emergency fund, and £6k for furniture. I have estimated that we will be able to apply for a mortgage by April 2023

lets estimate £2,600pm coming in together.

trying to get to £53k  over 3 years that's £1500pm

how much do you have saved already?

what is your saving rate?

early 20's go for 35/40year term

£144k 80% LTV  1.5% 35y £440pm 40y £400pm

£153k 85% LTV 2%% 35y £500pm 40y £460pm

if they come back while saving...

£162k 90%LTV 2.5% 35y 580pm 40y £540pm

Drop the £6k to furnish the place beg for stuff from people upgrading

rebuild emergency from income

fees £2k should be enough.

if 90% mortgages come back savings needed drops to £20k ish maybe £25k for some spare. 

With £2k spare after the mortgage you have enough to get this started sooner than 3years. 

Which bit of Linconshire? 

there are over 1300 3 bed+ upto  £150k  100+ of those are  4beds+ all over the county

At  £180 budget there seems to be plenty of 4 beds  take on lodger(s) for a year to rebuild savings  rather than save for 3 years and be sharing anyway.

You will be able to skip a house move if you go bigger.

Thanks for the reply! We are saving:
£668 per month together for LISA
between £400-£600 a month for the fees/emergency savings/decorations. 

We currently have £9k saved already for the deposit, and another £10k by April. We haven’t started saving for the fees/decorations/emergency fund yet. And Lincoln.

rabbithopper3

seradane said:

happinessxyz said:

atrixa said:

Are you currently renting? If so, I would check how much in rent I'd be paying out over the next 2-3 years as it might be worth it to buy sooner on a smaller deposit.

No we both live at our parents houses, about 10 minutes away from each other.

Hate to be the pessimistic one, this is a surprisingly positive thread for once haha. But -

Have the two of you ever lived together? It may be worth renting somewhere for a year before you plan to buy to get used to living together. Nothing scuppers long-term financial stability than having to sell a house within a year or two at a loss because you've broken up. Not to say that you definitely will but just good to answer that question before you put all your savings on the line!

No we haven’t lived together before, and I completely understand the issues that can arise from breaking up after buying a property together, but I feel very comfortable and confident in our relationship that buying a house is the next step for us!  

RelievedSheff

Excellent choice of city. We really like Lincoln and have had our boat there for the last 13 years.

There is some very affordable housing in Lincoln so your money will go a long way and get you a lot of property for the money.

rabbithopper3

RelievedSheff said:

Excellent choice of city. We really like Lincoln and have had our boat there for the last 13 years.

There is some very affordable housing in Lincoln so your money will go a long way and get you a lot of property for the money.

Yeah Lincoln is a great city, and great house prices as well around here!