From lodger to first time buyer - timeline? A bit lost...

misskismet

I was living overseas for over a decade and moved back to the UK in the summer. I am currently working part time and have a very low income. Fingers crossed, I'll be starting a new job in the new year, if all the paperwork goes through. (It's only a seven month contract though - feel lucky to even have got that in the current climate.) I am currently lodging in someone's house. This is supposed to be a temporary arrangement - I really want my own place, but don't know how to progress. Not sure anyone would rent to me at the moment due to my low income, and also don't really want to sign a contract for a year. 

I have around £25,000 of savings, which I've been saving for years as a deposit for a house. About £3,500 is in a help to buy ISA. 

My father passed away earlier this year, and his house is about to go on the market. When that sells, I will get half of the money. My questions are about buying property. I would like to use that money (along with my savings) to buy a small place for myself. I just don't know how to proceed, where to begin, and how long this is all likely to take. Is there any point in speaking to my bank until the other house has sold? I'm going a bit loopy as a lodger during tier 3 lockdown as I can't see anybody (inside) apart from the landlord. Not ideal! I'd really appreciate some advice!

saajan_12

Sorry for your loss. Few questions to be able to advise further
* approx value of father's house?
* approx value of properties in your area? Or if you don't have many ties to that area, can you move somewhere cheaper?
* your income? would affect the sort of mortgage you can get
* can you get a permanent job rather than the fixed contract? Might be easier to get a mortgage given you won't have much history. 

Also have you thought about renting a flat alone if you can afford it? Won't help the lockdown issues though, regardless of whether you own or rent the place. 

misskismet

Thank you. 
The house was valued ar £250,000. 
I'm not sure about the average price of properties where I am in the North (I'm new here), but I have seen a few places for around £120,000 that look promising. 

My income is practically nothing at the moment. I worked at a university over the summer and got a good salary but due to covid no contracts were extended. The job starting in January pays £19,000. Fairly sure nobody will give me a mortgage on a 7 month contract even with a good deposit. 

I would love to get a permanent job, there just don't seem to be any around. I think I've applied for around 30 jobs in the last few weeks. Lucky to even get a reply. 

Yes, I've thought about renting, but as ideally I'd like to own (20+ years of renting...), I'm unsure about getting tied into a contract. Living alone would help with the lockdown because I'd then be allowed to have a "bubble" - although maybe I'm out of the loop and those don't exist anymore. Can't keep up. 

greatcrested

So next year you will have half of £250K = £125K + 25K = £250K.

Without a permenant job you are unlikely to get a mortgage, so will have to use the £250 for a cash purchase.

If there are suitable properties for £120K you have wiggle room to spend a bit more and choose something suitable. But bear in mind buying costs, furnishing etc and a contingency fund for maintenance etc.

AdrianC

So you're new in the area, and are of uncertain employment prospects there...

Have you considered that you would probably be tempted to relocate for a tempting job offer...?

oldbikebloke

greatcrested said:

So next year you will have half of £250K = £125K + 25K = £250K.

Without a permenant job you are unlikely to get a mortgage, so will have to use the £250 for a cash purchase.

If there are suitable properties for £120K you have wiggle room to spend a bit more and choose something suitable. But bear in mind buying costs, furnishing etc and a contingency fund for maintenance etc.

if only money was that easy to come by
£125K + 25K = £250K. £150k

misskismet

AdrianC said:

Have you considered that you would probably be tempted to relocate for a tempting job offer...?

Yes, but I also need to settle down somewhere, and here seems as good as anywhere else. I've been following work around the world for 20 years and really just want my own home and some stability now. 

dimbo61

When you say up north you could be talking about Wilmslow/Alderley edge or Winsford/Crewe or Darlington.
All these towns are up north.
However if you can buy a suitable property for your £125/150K budget then why not.
Maybe you like modern homes or Older properties with big rooms.
Draw up a list of Must Haves.
Garden ?
Parking?
Number of bedrooms ?
Bathroom/s ?
If you can maybe go for a freehold house rather than a leasehold flat !

greatcrested

oldbikebloke said:

greatcrested said:

So next year you will have half of £250K = £125K + 25K = £250K.

Without a permenant job you are unlikely to get a mortgage, so will have to use the £250 for a cash purchase.

If there are suitable properties for £120K you have wiggle room to spend a bit more and choose something suitable. But bear in mind buying costs, furnishing etc and a contingency fund for maintenance etc.

if only money was that easy to come by
£125K + 25K = £250K. £150k

Ooops!!

No wonder my finances are a mess!!