My offer on a 3bed semi-detached for £245k was accepted. Overwhelming feeling of dread now.

white_tree

Hi,

Scroll down for tldr.
I (27) will be buying on my own and I currently have an offer accepted for £245k on a 3bed semi-detached house. I've struck some luck as the property could have very well sold for more under another circumstance. 3beds, driveway big enough for two cars.

My take home after NI, tax, student loan and pension is £2,562. My monthly repayments will be £974pm (5years fixed rate). This is the only deal i can get on my salary.
I am budgeting £340pm for:
£129 council tax
£75 gas (estimate)
£75 electric (estimate)
£21 water (estimate)
£25 broadband
£16 sim only deal
Home insurance will be paid in full by exchange

About me
Buying in Kent
No car expenses
I work from home
Currently living at home with parents for £0 and saving
Actively dating and would like to have kids as soon as we're both ready
Putting down a £38k deposit on this property

After mortgage and bills, my new take home will be £1,248 and that's for day to day living... food, saving, shopping. 

I feel extreme dread going into this as my disposable is down by a significant amount and I've never committed to a purchase like this. It'd be less if I go on maternity.

I will have about £8k to furnish the house, repaint some walls, fit carpet. If I have anything left for an emergency fund it'll be a miracle. I'm spending the next few months saving close to 70% of my take home to boost my savings before completion.The longer the process takes, the better for me. 

Kids are a big part of my decision too. I don't want to NOT be able to afford them whether that's by money or house set up. I don't think I'd qualify for any help from the gov't with my salary? I've no idea honestly. Just want to make the right decision here.

I plan to get a lodger in for some financial relief although I don't feel comfortable relying on this. Who knows how long it'll take me to find a compatible lodger? But if I found one, it'll take my disposable to around £1.8k if I charge £625pm.

I've also been applying for jobs in my field, can expect £200-400 increase per month, Will that make a huge difference? Debatable. Take home with £200-400 increase could be £1448-£1648

I say all that to ask whether I should go for the house or pull out while I still can? I've not instructed my conveyancer yet.

Feels like I'm future proofing myself with this house but I also feel like I may be biting off more than I can chew when I remember how much take home I'll be left with.

Any advice, warnings, or encouragement is welcome. Up at nearly 1am stressing about this. 

Thanks

Tldr
In process of buying 3-bed house. Salary will be tight after mortgage + bills (£1248 left). Will have to dip into my emergency fund to furnish house. Worried about affording future kids & emergencies. Potential to get higher paid job or 1-2 lodgers. Unsure whether to go forward with house or pull out

Herzlos

You'll be fine. Remember that you don't need to furnish/decorate/modernize everything at all once.

NameUnavailable

If you're dating and wanting kids then presumably your other half will be moving in soon.......and paying towards the costs?

HampshireH

If you're dating and wanting kids soon  why rush to buy something why not wait and do it together

Sapindus

HampshireH said:

If you're dating and wanting kids soon  why rush to buy something why not wait and do it together

Because being cynical the next installment is "we bought a house together and we're splitting up and neither of us can afford to buy the other out".  Or worse "I'm stuck in an unhappy relationship because it's the only way I can see of being able to afford a house."

OP could do a more detailed budget for their remaining disposable income and see whether they can manage on it.  The first few years are supposed to be tight.  There are ways to furnish a house cheaply and trade up to better stuff later on.

jonnydeppiwish!

Most people get this feeling and the finances being hit. You’ll be fine - enjoy your new house!

WellKnownSid

white_tree said:

I will have about £8k to furnish the house, repaint some walls, fit carpet. If I have anything left for an emergency fund it'll be a miracle. 

Find your local British Heart Foundation or similar furniture store and take your time because stock changes regularly, choose the cheapest carpets from somewhere like Carpetright but negotiate hard on decent underlay and fitting, look for clearance offers on curtains (places like Dunelm), etc - and you can furnish, repaint some walls, and fit carpet for less than £2,000

If you want to spend any money at all on anything, get yourself a decent mattress (but only for your bed, not guest beds...).  Nothing else matters.

Chemistry777

Always tough at the beginning, after a dew years this mortgage payment will feel less and less

Bigphil1474

Agree with above. Even for your 5 year fix, your payments will stay the same but hopefully your wage will go up each year. Even if you only end up with £100 extra each month, by the end of year 5 that's £500 bigger gap between your mortgage and your income. Other bills will go up but the mortgage payment will seem less ominous. 

Don't think your monthlies is complete - what about TV license, home insurance after year 1, no travel costs (work or otherwise), maintenance on the property, life insurance. Having said that, your budget is healthy IMO, above £1k after all bills paid is pretty good even if you stay on your own for the next 5 years. 

RelievedSheff

Your budget sounds fine. It is always daunting making such a huge change but within a few months once you have settled into your new routine you will wonder what all of the fuss was about.

zagubov

Most people feel this way at this point. You'l be surprised how quickly you adjust to your new available income.

Read this website from stem to stern. It's saved me tens of thousands of pounds over the last decade. Be prepared to switch insurances, energy and eventually mortgage provider regularly and never let anything renew automatically without checking the competition first.

You're going to be fine.