Impulse purchase??

PandaPants_2

KiKi wrote: »

If you're taking home £1200 a month and still have no savings, despite paying almost no rent or bills, then you need to get your finances in order before you even think about purchasing a flat.

You could easily save £800 a month. That would be £9600 in a year for a deposit.

Learn to manage your money, don't buy a flat on impulse. It's not just the mortgage, it's the bills, the upkeep, the process of purchasing - what happens if damp shows up on the survey? What if there are major works planned? How much is the service charge and maintenance, and what if the lease is too short?? What if you realise you hate it, sell it a year later for less and end up in negative equity? You need to realise how big a commitment this is!!

If you need to make an impulse buy, go purchase a pair of shoes or a Wii.

KiKi

Very good points, i hadn't really considered work or maintainance charges. Im crap at things like this, ill probably end up living at home forever... :rotfl: :rotfl:

RHemmings

If you had a £105K IO mortgage paying about 6%, that would be £525pcm on an IO mortgage, or £685 on a repayment mortgage. Can you post a monthly budget for how you expect you could stay within your £1200pcm income?

MissEyre

Just to give you an alternative view...

I am quite similar to you by the sound of things-I earn good money but am not amazing at saving it, although I do always pay bills and invoices on time, as I know I have to. I bought my first flat on a whim in 2005 for 90K and sold last year for 105K and used the equity to help me move up the ladder. Actually being a homeowner has given me the discipline to manage my finances in a way I wouldn't have done if I was still renting. I lived so far beyond my means when I was renting that I ended up with a huge personal loan (20K) and it's only since I bought my flat that I have been forced to budget properly.

You will know yourself better than anyone else, but it is a big step so do think long and hard about it, and have a chat with a mortgage adviser to see what they say. Good luck! x

Spamreported

PandaPants wrote: »

Sorry? I don't understand.... :rotfl:
What !!!!!!?

people borrowing who are not disciplined. borrowing more then they should. you would be the first casualty of negative equity,

PandaPants_2

Spamreported wrote: »

people borrowing who are not disciplined. borrowing more then they should. you would be the first casualty of negative equity,

But how am i to blame? I don't understand....

nelly_2

PandaPants wrote: »

I am TERRIBLE with money, if it's there i HAVE to spend it... :rotfl: I just really like this place and since it's so cheap it seems silly not to consider it.

Being terrible with money means you are perfectly placed to commit yourself to a 25 year mortgage.

If anything goes wrong just go in to the bank and say that to them-

They will reply.... 'Oh we never knew...ok just pay us back when you become less terrible with money its ok'

or alternatively you could grow up and be an adult and a realistic one at that

RHemmings

PandaPants wrote: »

But how am i to blame? I don't understand....

Not you in person. They were classifying you as the type of person who got the housing/mortgage market into "!!!!!!".

tr3mor

PandaPants wrote: »

Very good points, i hadn't really considered work or maintainance charges. Im crap at things like this, ill probably end up living at home forever... :rotfl: :rotfl:

Well you will if you have that attitude!

If you're crap at something then why not try a bit of self improvement?

PandaPants_2

nelly wrote: »

you taking the p1ss?

No. Are you?

PandaPants_2

tr3mor wrote: »

Well you will if you have that attitude!

If you're crap at something then why not try a bit of self improvement?

I did today funnily enough, i set up a new ISA and a direct debit to start filling it up... I was very proud of myself...