Is anybody on here fairly young and bought there own house ????

Im 21 and decided i wana buy a house within the next 18 months or so.


At the moment its a fair way off so i dont wana actually go and see a mortgage advisor, but i just wana know a few rough figures

My basic salary is 17k per year + regular overtime, which totals circa 19k per year.


Do mortgage places take regular overtime into consideration???

Ideally i'd be looking to spend around 150k, and i'd have about a 5-10% deposit, meaning i'd prob wana borrow around 140k ish

I'd be totally debt free going into the mortgage, so only expences would be house related + the normal bills plus running a car etc etc

Would i stand a hope in hell of getting somewhere to lend be 140k as i know my salary is'nt great

Also what's the average interest rate at the moment, just so i can use it to play around and work out what rough repayments would be, is around 6-7 % fairly average???


Also will many places offer a mortgage over the normal 25 years, 35 years maybe ????

Also anyother help / info would be great

Thanks

 

Overtime - if you can prove it is regular i.e. shows up on most monthly payslips then they should take it into account.

IIRC they work on affordability more than salary x % basis nowadays. With reference to your salary, Ł140k (over 25years) will probably cost you Ł750 to Ł850 / month for a repayment mortgage or Ł450 to Ł550 for interest only mortgage (after any discount period). You need to be able to prove to the mortgage co. you can pay the mortgage and then all your other bills (council tax, water, gas, elec) plus food, car expenses (ins and petrol), clothes, and other living sundries such as socialising etc.

If you can't stretch to this then you could do with go in with one or two mates on an interest only basis to get on the ladder and it help to avoid chucking money away on rent - as although you are not paying off the capital, you can do improvements to the property and also hopefully will have gains in equity (the market is still going up - slowly). Presumably you don't have a g/friend who wants or is able to move in?

 

I am looking now with my girlfriend and if your after 140k then i would say not a chance. They ran a credit check with us and it all depends how good it comes out. Some lenders are willing to lend up to 5 times your income but thats only if your well off and have other propeties. If you fall into the medium bracket then you could get 3.5 times your income but your age is against you. hope it helps a bit

 

as said you havent got a chance, you need a second party.

the maximum i tihnk you'll get will be from your bank and it will be 3.5-4 times your wages.

So about 50-60k is about your lot i think mate

 

Good news its in the lenders interest to lend over a longer period of time so 35years wont be an issue.

Your income however is an issue for the amount youd like to borrow, ever with a bit of give and take you still wont get anywhere near Ł140k.

The only way it would be feasable is with a 15% deposit and a self certification mortgage.

Or you could apply for a self cert mortgage state that you will be puting 15% down. After the mortgage has been accepted apply for a loan, for thr difference between your actual deposit and the 15% you said you would place as a deposit.

Makeing it affoardable shouldnt be an issue if you chose interest only mortgage until your equity in your property increases, when it does remortgage and clear your loan.

 

just bought my first house and they will take overtime into account as long as its regular i borrwed 140k with no deposit but to be honest you got no hope of that much on your earnings sorry,i earn nearly double what you do and i only just got my morgage

best advice is see a financail adviser and start saving

 

also 140k on 17-19k mate and you wont be able to leave the house to enjoy yourself.

i was 20 when I bought my first house for 43k - just bought one for 140k now - with a 90k mortgage - im on a fair bit more than 17-19k - but after all my regular bills I wouldnt say I had much cash spare!

140k - will be at least 700 per month payments... council tax bank on min Ł80 a month... insurances another Ł40... gas elec Ł50 a month - water bill Ł20...
food Ł150 a month - petrol Ł100 min - car insurance Ł30 a month?

I'd say you were out of money already per month... and you've not bought TVs, decorated, replaced any fittings, furniture or had a few nights out on the pi55....

You could do with a rethink mate.
for a guide Ł1000 mortgage will be around Ł5-7 per month payment.
the other bills are all around the same regardless of house size

 

I'm in this boat myself right now and it's very frustrating

24, still live at home, and dying to get out But I don't wanna rent, as I don't got a lot of money and renting will just see it all disapear and I won't be able to save for a deposit to buy later on... I have about Ł10k right now sat in a bank account I can't touch (inheritance), which is probably good cos I'd have spent in on a Cossy or something by now lol, which is reserved SOLEY for property - but in this day an age Ł10k is fuck all

I (well, will be when I start work next week) earn basic wage of Ł16k + bonus (which is reletive to the ammount of jobs I can get done in a week - more jobs = more "point" and points mean prizes Work like a bastid and I might be lucky and see Ł23/24k MAX (will probably be more like Ł20most likely) so 3.5 times that ammount (if I can prove that bonus is a regular income) will be Ł70k - if I get lucky and make Ł23/24k happen regular, then I might be looking at Ł84k..... But what is Ł84k gonna get you this day and age? FUCK ALL

My bro just moved out with his fiancee, and between then they managed a Ł150k mortgage, and get really lucky and got a 100% mortgage, so the deposit money they had saved up is free to spend on appliances, doing up the kitchen, redecorating etc.... But even for a tad over Ł150k, they only got a 2 bed with (3 bed with the loft conversion) with one downstairs room, end of terrace, no drive (tho carden has rear access so probably gonna tarmac part of it to park both cars)... So even tho it's a nice place, it's not big or "lush".....

On my money I'm fucked really.... Be lucky to afford a box outside Asda

 

Aye Mate anywhere between 15 & 25% dependant on lender

 

Bought a house last year with my other half. Ł88000 for the house,
borrowed Ł83000 over 35 years. Taking into account the various insurance policies etc it all amounts to Ł535 per month!

 

24 and only 10k in inheritance?

wtf you done with your money so far???

if i'd of stayed at home id of had 30 odd k by 24!! (had 11k by 20 - and was always on a crap wage)
what did you expect? has it only just dawned on you about buying a house? best get a rich woman under your arm who can go in halves with you!!

 

Property's defo the way forward

I'm only 23 but have managed to save nearly Ł50k over the years (I'm fortunate enough to have a well paid job and work for myself) still with the folks

Hope to buy a nice flat locally for around Ł100k in another three years or so CASH................ then let it and live for nothing off the income

You HAVE to make BIG sacrifices but at the end of the day everyone needs a roof over they're head and you can either pay for it for the rest of your life monthly or bed, borrow and steal and pay cash

As an example I currently save Ł2k a month in order to increase capital, and then I still have my normal monthly outgoings.

Good luck mate

 

Friendly!

 

How would it effect things if i had a guantor (spelling ), if they were in the mid 40's with there own house (worth circa 280k) and they have no mortgage???

Another option im looking into is a joint mortgage with my mum, but i would make all payments and own the house my mum would just be on the mortgage to enable me to get it.

As for affording the house

I had kinda worked out roughly (all per month)



Mortgage payments - Ł800
ALL Bills (including net/sky) - Ł250
Car insurance - Ł100
Petrol - Ł150
Other car costs (servicing/tax etc etc) - Ł150

TOTAL COSTS - Ł1450

although there could well be some costs i have totally forgotten about LOL (pls add them if i've missed n e thing )

In the average month i get paid Ł1400 ish, i am also planning on getting a lodger/mate for the spare room, which should be a easy Ł300 a month, also my gf will be moving in and paying 200-300 a month towards bill/mortgage (although she WONT be on the mortgage, and i'll be making sure she has no rights with regards to the house, she would basically be classed as a lodger) i also have a pretty regular income on the side which guantee's me Ł200+ a month.

Thats a pretty safe and regular Ł2200 ish a month, so with my girlfreind helping with food and daily stuff like that

Fair enough it would be tight for the 1st few years, but im sure people have lived on less, and after a few years im likly to be on more money, same with my gf, so i'd have more options open then.

Also if i ever did get into trouble i know both my parents have plently of money about, so i would have somebody to bail me out

 

Yeah mate - that was what was left to me when my Grandad died a couple years ago.... I don't see what my age has to do with how much money I have inherited thru someones death tho?

Shame I haven't had more reletives dies and leave me money eh? Maybe I should go and pop off a few of em and be loaded and money grabbing like you right?

Enjoyed my life mate I have never eartn huge ammounts, and dunno bout you but living on London's doorsept isn't the cheapest place to live. But rather than lock myself in and stash away every penny I decided to go out and live life a little. And you?

 

Too many ifs and buts in fairness mate................ people can and will walk away from ''mates'' agreements (as will girlfriends) but YOU will still have to pay the bills.......................

Only EVER calculate your finances on known and reliable income

TRUST ME I do it for a living for others

 

Probably best to go and see a professional mate, you'll never know unless you ask.

 

sorry fellas hit the bottle bit early tonight so thoughts int going to keyboard quite properly.

i just meant that your only savings have come from an inheritance or you have more put aside? if not why not so to speak?
do you have anything to show for it? or bought anything interesting that you can account for where it went?

just things like this require quite alot of plannning ahead and if you haven't really thought of them already (i.e. by age of 24) then it will probably delay things for you quite a bit.

I aint money grabbing at all, everything I have is mine and paid for by me without anyhandouts...and im happy with how i've lived so far, saving what I can and squandering the rest.

understand living near london is a biatch for the prices of houses etc but is it any huge difference in terms of normal cost of living?


roybacer - to take home 1400 if you pay tax then thats more like equivalent of 23k.. which would give you a little spare. you are thinking right ahead but where abouts in the country do you live and what kind of property do you live in now?

 

No, the inheritance I have is not my only savings - I save what I can when and where I can.

But yes, the average cost of living IS higher being in London than far away from it - transport (public and private - my insurance is a fair higher here than it wouild be if I lived in Yorkshire for example), and belive it or not, stuff in shops is generally more expensive closer to London too - studies show that an average family shop can cost anything up to 20% in the same supermarket at different locations in the country...

But all that aside, I have never earned a lot of money in any job I have worked in, which doesn't generate a lot of money left over for saving, and then messing about with cars that cost Ł1/2/3k each and the insurance (when I was 18 it cost me nearly Ł1300 to insure an XR3i FFS! Try that with a couple of S1 RST's), and generally enjoying my life. Sure if I earned twice what I do/did then I could do all that and save enough money not to mess around now with house prices etc - but lifes a bitch right?

I'm so pleased for you that you were able to save what you did and sorted yourself out - but not everyon's life is the same.

One thing that is the same tho, is I don't take handouts either - I don't do loans, or take benefits - what I have is what I have paid for, and I don't pay for it unless I have the money there TO pay for it. Even when unemployed a few years ago I wouldn't take the poxy government unemployment benefit...

 

I'd say welcome to dream land.

The only hope I have of getting a gaff is with a GF and she earns more than me and can match my deposit and then we'd struggle to get 140k.

Prob is.. I dont wanna live with her as I wanna do my own thing first.

Looks like I'll be going for the lottery

J

 

ffs lighten up....
im not gloating or anything just making the point that it requires a good deal of forward thought - especially with the house prices as they are now...

sounds like you've done almost exactly the same things as me in terms of cars etc etc... just i'd kept aside what I could where I could and made the descision that youre contemplating now about 5 years ago. but i'd planned it about 3/4 years previous to that.

if you took the same approach then the 10k you have now would be 30k in a couple of years time and a much bigger dent into a deposit for example - but you gotta decide now, take the pain and the loss in expendable income now to make the savings.

youre not any better off putting a little away as the house prices rise so fast that little is wiped away so quickly - but if you save now what you would pay out in a mortages then it very quickly gets your cash up there.

 

Jake - same here chap, I would rather get my own place first, THEN live with someone later...

 

lol

its a fookin nightmare though... I got that pickle really at the mo...
I have about 50k equity in the place I have now. GF doesnt live with me.

if she moves in here then id have to sort some contract out so that I get my equity underwritten - or she would have to stay as a lodger, which means she then never gains any assets... there no way she can match or get near to my equity as she has spent her cash on other things over the years so thats a no no...

there is the option of selling up and matching deposits and blowing the difference on something else but then id of lost what security I have and be paying out more money in mortgage payments... no win no win!!

plus its sh:t just been mine as she isn't interested in helping out as its not her house!! nothing's simple.

 

I don't get this whole equity thing

 

equity = basically. for example. he paid 100k for house, 90k on a morgage. house is now worth 140k. so he has 50k equity. it basically means if he sold up today and moved to outer mongolia he can pay off morgage and have 50k in back pocket.

 

My girlfriend and I have got a Ł150k mortgage approved and have put in an offer on this place....

http://www.rightmove.co.uk/viewdetai...a_n=2&tr_t=buy

 

For a house like that round where im looking to buy (where im living at the moment) i'd be looking at ATLEAST 260K +, prob closer to 270/280k

 

Aah, the benefits of living in the middle of nowhere!!

You can still get to london in around an hour by car and less if you get the train, and its half an hour from the m25 so is quite well connected.

Pain in the arse in the summer though, full of bloody people on holiday.

 

I'm 24 and in the process of buying a house with my g/f, in south wales, house is 94k, putting down 5% mortgage over 35 years (will reduce term when g/f qualifies)

Mortgage is Ł456 plus insurance.
we split everything 50%-50% so with all bills including sky and internet we pay about Ł350 each.

we are curtrently paying Ł450 a month in rent.

 

35 years is scary - i was worried about having to extend to 30 this time.

first mortage I had was for 38.5k and 25 years... so I shoulda done by time I was 45 which woulda been cool!!
had to extend it to 30 years now with 90k - so now ill be 55

as said equity is the difference between the value of the house and the money you owe on it still.... obviously initial deposit, mortgage repayments and of course increase in value all increase the proportion of the house you own....

if you go in on your own from the start and have a partner join you later...
then you would have paid money in yourself in deposit, repayments and also hopefully the house increased in value...

e.g. I Paid about 16.5k into my first house - sold it for a profit which turned the 16.5k into 46k - so I basically had 46k to put down on my new property few other payments and more cash put down and ive got 50k share in a 140k house.

if someone moves in with me for a bit helps out to pay bills etc... after about a year they break up and are effectively entitled to 50% - so id have to pay them off 25k+ when they haven't contributed in anyway to get that in the first place...

negative equity is when the value of the asset reduces so much so that your loan is worth more than the asset... i.e. 90k mortgage house only worth 80k = 10k loss if you sold i.e. neg equity