Using 'Every Penny' for a Deposit - Bad Idea?

Hannimal

Iiwb100 said:
it depends. I’d want some buffer but your point in life, your ambitions and current situation all dictate what might be sensible.
What I would say is when you move expect that ideally you will want to spend money on the house and things in it. Just moved myself (not the first time!) and realised the dishwasher being left behind was broken, the fridge freezer left behind didn’t freeze and the electric garage door needed replacing. I could have lived without a dishwasher and a freezer and a garage door that went half way before sounding like it was about to bring the house down. Sure. But to make my new house enjoyable I just replaced them all. It costs money. But I moved knowing I’d have to spend some. And that’s before we come to some of the running repairs that need to be attended two, patching the roof and replacing the back door etc....and well before the desirables like new kitchen and utility....

Hmmm.. maybe you've not rented for a while. I am renting while waiting to exchange and I have a fridge that leaks water everywhere and I need to dry it with a towel every two days to avoid having water on the kitchen floor, I've a washing machine with mouldy seals, my kitchen sink has an odour coming from somewhere down the pipes, my buzzer doesn't work, and I am currently sipping tea and wearing two layers and my fingers are starting to hurt because my living room is so cold (and it's only August). I pay £1100 pcm for this joy. My landlord knows all these struggles and has so far used the pandemic as a reason to not address them. I see no scenario under which for a first time buyer it makes sense to not move asap. At least you have the freedom to get the little niggles fixed up when you can. 

hannah2283

I’m about to buy my first place. I have a £12k buffer for essential repairs, furniture, fees. What is left will be divided between an emergency fund and an account where repairs and other house stuff will be paid out of. It would be lovely to be going into this with an emergency fund but it’s my first priority once I am moved and settled. 

Hannimal

hannah2283 said:

I’m about to buy my first place. I have a £12k buffer for essential repairs, furniture, fees. What is left will be divided between an emergency fund and an account where repairs and other house stuff will be paid out of. It would be lovely to be going into this with an emergency fund but it’s my first priority once I am moved and settled. 

I think £12k sounds pretty decent for this - unless the house needs some considerable work, surely that is enough for a decent emergency fund?

hannah2283

Hannimal said:

hannah2283 said:

I’m about to buy my first place. I have a £12k buffer for essential repairs, furniture, fees. What is left will be divided between an emergency fund and an account where repairs and other house stuff will be paid out of. It would be lovely to be going into this with an emergency fund but it’s my first priority once I am moved and settled. 

I think £12k sounds pretty decent for this - unless the house needs some considerable work, surely that is enough for a decent emergency fund?

I’m an over cautious worrier! Wall ties and damp proofing need doing, I want to get floors done (to wood) plus a probable new boiler and one or two other things that need to be done. That’s £5k gone. The rest should easily cover it but yeah, it gives me wriggle room and an opportunity to save too. 

steampowered

You do not need a 6 month emergency fund. That is more than most people need - particularly if you are young and don't have children.

It's fine to stretch yourself a bit. You can build an emergency fund back-up over time.

Saga

steampowered said:

You do not need a 6 month emergency fund. That is more than most people need - particularly if you are young and don't have children.
It's fine to stretch yourself a bit. You can build an emergency fund back-up over time.

Thanks.  If I say I am ineligible for a LISA because of my age...

Angela_D_3

Saga said:

steampowered said:

You do not need a 6 month emergency fund. That is more than most people need - particularly if you are young and don't have children.
It's fine to stretch yourself a bit. You can build an emergency fund back-up over time.

Thanks.  If I say I am ineligible for a LISA because of my age...

Meh,  if you’re healthy you’re young.  It’s all relative 

Sibbers123

Saga said:

steampowered said:

You do not need a 6 month emergency fund. That is more than most people need - particularly if you are young and don't have children.
It's fine to stretch yourself a bit. You can build an emergency fund back-up over time.

Thanks.  If I say I am ineligible for a LISA because of my age...

You wouldn’t want your emergency fund in a LISA anyway.

Sparklestar1127

Originally as FTB we kept 3k back which was about 6 mortgage payments equiv. Soon realised we had a faulty boiler and leaky bathroom so that quickly disappeared! 

This time we have kept 4k back, and having the boiler tested and certified first 😂 once bitten and all that. 

Flugelhorn

I had zilch left when I bought my first house 34 years ago but had good income (17K, local average was about 7K at the time)- was taking some cardboard boxes etc to the tip when we spotted someone chucking 4 dining chairs out of the car, they happily diverted the chairs to my car and I still have them now. 
It was risky having very little, was new house so no sig problems but I wouldn't advise anyone to do that again