Help with mortgage

Bendybops19

Hey,

Before i start, let me just say that i know absolutly nothing whatsoever about mortgages and most financial things!

Ok...so i dont want to rent as i know i will just get stuck in the rut of renting for years - so i was considering maybe buying a small flat?

Here is the problem, i am only 20 years old and earn a pittance! I work full time and only earn about £12,500

The only things i have to pay each month is a loan of about £8,000, £70 car insurance and £15 phone bill.

I dont think any one would want to give me a mortgage would they? I wouldnt get anything near enough to buy a flat would i?

Help!

sjh15

go to https://www.moneyfacts.co.uk they have mortgage calculators etc which could help you work out how much you could borrow.

herbiesjp

What prices were you looking at?

meanmachine_2

Well I'm 32, with a sizeable deposit and I'd struggle to find anywhere larger than a damp-ridden bedsit.

Sounds to me like you're currently better off renting, paying off your debt, moving up the career ladder, then by the time you're 30, you might be able to buy.

But not right now.

Bendybops19

Hmmm meanmachine your right, using a mortgage calculator it only gave me about 40,000!!!! The flats around here vary from about 99,000 - 150,000.

martinpike

20 is very young to be hoping to buy on your own. Have you got a good friend (and I mean GOOD friend) that would consider going in with you?

Obviously that would necessitate buying something bigger than a one bed flat (I didn't mean THAT good a friend...!).

Joe_Bloggs

@Bendybops
My biggest mistake at your age was to spend my money on a car and car insurance,fuel . You will only lose money with a car. Perhaps you can pick up skills that can save you money with motoring costs. I eventually learned to change the cylinder head through necessity. You might try to even the wear your tyres by switching them around and monitoring their pressure.
Had I known about the future house price inflation then I would have saved myself a fortune. You may be able to benefit from house price deflation if you manage to save a deposit as house prices fall. The income you mention is a drawback to any saving ambitions. Can you increase your set of skills and move up the earnings table ?