Thinking of buying house
Discussion
Just wondering what everyone's opinions are with my possible decision today.
Just a bit about me, I don't have any debts or major out goings, no car payments or anything like that. I earn 26,000 a year salary and am currently putting £1300 into an ISA each month which is everything I can spare and I currently have £15,000 in savings.
Now the house next door to where I am currently, currently at home with mum which is why I can afford to put such a massive amount away each month, has just come up for sale at £115,000, it's a fantastic little house, had a nose around last night and it is a great house. I have a girlfriend who has her own home which she shares with her mum due to her being long term sick.
Now, my options
1. Put an £11,500 deposit down and buy the house, mortgage would be just under £500 a month. Will £3500 be enough to cover moving fees, first time buyer so no idea what these might be. As its next door to mum, I don't need to move over in one go either so can slowly migrate. As house prices go up, my house will appreciate as well and was then thinking of selling or renting out 18months to 2 years from now when I hopefully move in with girlfriend.
2. Not buy the house, keep on sticking £1300 away each month till girlfriend is well enough for us to live together. Speaking to girlfriend, she doesn't want me to get a house for the both of us now as she's not well enough to take advantage of living with me. Mums not shoving me out the door but I'm 31, 32 in June, so bit annoyed I'm living at home. I think girlfriend would prefer this one but she's happy which way I yo.
Is a £26,000 salary enough to live comfortably with a £500 mortgage?
Just a bit about me, I don't have any debts or major out goings, no car payments or anything like that. I earn 26,000 a year salary and am currently putting £1300 into an ISA each month which is everything I can spare and I currently have £15,000 in savings.
Now the house next door to where I am currently, currently at home with mum which is why I can afford to put such a massive amount away each month, has just come up for sale at £115,000, it's a fantastic little house, had a nose around last night and it is a great house. I have a girlfriend who has her own home which she shares with her mum due to her being long term sick.
Now, my options
1. Put an £11,500 deposit down and buy the house, mortgage would be just under £500 a month. Will £3500 be enough to cover moving fees, first time buyer so no idea what these might be. As its next door to mum, I don't need to move over in one go either so can slowly migrate. As house prices go up, my house will appreciate as well and was then thinking of selling or renting out 18months to 2 years from now when I hopefully move in with girlfriend.
2. Not buy the house, keep on sticking £1300 away each month till girlfriend is well enough for us to live together. Speaking to girlfriend, she doesn't want me to get a house for the both of us now as she's not well enough to take advantage of living with me. Mums not shoving me out the door but I'm 31, 32 in June, so bit annoyed I'm living at home. I think girlfriend would prefer this one but she's happy which way I yo.
Is a £26,000 salary enough to live comfortably with a £500 mortgage?
I can't advise you on your personal situation about whether or not to actually buy the house, but in terms of expense.....
£3,500 will be loads mate. My girlfriend and I are buying our first home and our conveyancing is costing c. £3,400, but that includes £2,300 of Stamp Duty. The Stamp Duty on your purchase will be nil due to the price of the property, so you're looking at somewhere in the region of £1,000 for conveyancing. As a ballpark you're probably looking at £500-£600 + VAT plus disbursements (searches that the solicitors carry out, etc.). If you budget £1,200 you should have change.
Some mortgage providers charge an arrangement fee, or admin fee so check those. There's plenty that don't however and as you have 10% deposit you should have a good choice of mortgage products. See a broker is my advice, ours helped us get the right product. We paid £295 as a flat fee to our broker but he found us something £80 p/m cheaper than we could get ourselves so it's a no brainer.
Survey - most people tend to get a homebuyers survey done to report on the property. This is likely to cost you £350ish probably if you want one done but prices vary greatly by area etc .
So presuming you won't be hiring movers to move next door, fees are likely to be:
Conveyancing - £1k - £1.2k
SDLT - nil
Broker fee - ? Up to £350
Mortgage fee - hopefully nil
Survey - £350?
All in you should hopefully be looking at getting some change from £2k.
EDIT - think long and hard about whether you truly want to live next door to a parent! :-)
£3,500 will be loads mate. My girlfriend and I are buying our first home and our conveyancing is costing c. £3,400, but that includes £2,300 of Stamp Duty. The Stamp Duty on your purchase will be nil due to the price of the property, so you're looking at somewhere in the region of £1,000 for conveyancing. As a ballpark you're probably looking at £500-£600 + VAT plus disbursements (searches that the solicitors carry out, etc.). If you budget £1,200 you should have change.
Some mortgage providers charge an arrangement fee, or admin fee so check those. There's plenty that don't however and as you have 10% deposit you should have a good choice of mortgage products. See a broker is my advice, ours helped us get the right product. We paid £295 as a flat fee to our broker but he found us something £80 p/m cheaper than we could get ourselves so it's a no brainer.
Survey - most people tend to get a homebuyers survey done to report on the property. This is likely to cost you £350ish probably if you want one done but prices vary greatly by area etc .
So presuming you won't be hiring movers to move next door, fees are likely to be:
Conveyancing - £1k - £1.2k
SDLT - nil
Broker fee - ? Up to £350
Mortgage fee - hopefully nil
Survey - £350?
All in you should hopefully be looking at getting some change from £2k.
EDIT - think long and hard about whether you truly want to live next door to a parent! :-)
Regiment said:
Just wondering what everyone's opinions are with my possible decision today.
Just a bit about me, I don't have any debts or major out goings, no car payments or anything like that. I earn 26,000 a year salary and am currently putting £1300 into an ISA each month which is everything I can spare and I currently have £15,000 in savings.
Now the house next door to where I am currently, currently at home with mum which is why I can afford to put such a massive amount away each month, has just come up for sale at £115,000, it's a fantastic little house, had a nose around last night and it is a great house. I have a girlfriend who has her own home which she shares with her mum due to her being long term sick.
Now, my options
1. Put an £11,500 deposit down and buy the house, mortgage would be just under £500 a month. Will £3500 be enough to cover moving fees, first time buyer so no idea what these might be. As its next door to mum, I don't need to move over in one go either so can slowly migrate. As house prices go up, my house will appreciate as well and was then thinking of selling or renting out 18months to 2 years from now when I hopefully move in with girlfriend.
2. Not buy the house, keep on sticking £1300 away each month till girlfriend is well enough for us to live together. Speaking to girlfriend, she doesn't want me to get a house for the both of us now as she's not well enough to take advantage of living with me. Mums not shoving me out the door but I'm 31, 32 in June, so bit annoyed I'm living at home. I think girlfriend would prefer this one but she's happy which way I yo.
Is a £26,000 salary enough to live comfortably with a £500 mortgage?
Your budget should be sufficient in my experience as a Mortgage Broker. Low fee products can be targeted specifically if required.Just a bit about me, I don't have any debts or major out goings, no car payments or anything like that. I earn 26,000 a year salary and am currently putting £1300 into an ISA each month which is everything I can spare and I currently have £15,000 in savings.
Now the house next door to where I am currently, currently at home with mum which is why I can afford to put such a massive amount away each month, has just come up for sale at £115,000, it's a fantastic little house, had a nose around last night and it is a great house. I have a girlfriend who has her own home which she shares with her mum due to her being long term sick.
Now, my options
1. Put an £11,500 deposit down and buy the house, mortgage would be just under £500 a month. Will £3500 be enough to cover moving fees, first time buyer so no idea what these might be. As its next door to mum, I don't need to move over in one go either so can slowly migrate. As house prices go up, my house will appreciate as well and was then thinking of selling or renting out 18months to 2 years from now when I hopefully move in with girlfriend.
2. Not buy the house, keep on sticking £1300 away each month till girlfriend is well enough for us to live together. Speaking to girlfriend, she doesn't want me to get a house for the both of us now as she's not well enough to take advantage of living with me. Mums not shoving me out the door but I'm 31, 32 in June, so bit annoyed I'm living at home. I think girlfriend would prefer this one but she's happy which way I yo.
Is a £26,000 salary enough to live comfortably with a £500 mortgage?
Your income is enough, but only you can decide if it's enough to live on after paying your mortgage, associated insurances, council tax, utilities and food etc.
Personally, I would buy the house for you, and wait to see what transpires with your Girlfriend. Life sometimes has a habit of not working out how you'd expected or hoped.
With regards to renting the property out you'd need to reduce the LTV down to circa 75% to move on to a BTL product ordinarily. You can sometimes as for Consent-To-Let from the current lender, but this is at their discretion as to whether they allow it and how long for.
HTH
Option one is a good option but do your research on how much the property will rent for, how much house prices have gone up in the last 6 months and consider if the house is currently in a "lettable" state.
If you buy the property, let it and keep saving £1300 a month you will be doing well in 2 years
If you buy the property, let it and keep saving £1300 a month you will be doing well in 2 years
Thank you for the advice, I've put an offer in for the asking price and it's been accepted, the lady wants a quick sale so with me not having a chain to worry about and knowing me, she thought it'd be easier. House over the road sold this morning as well for 125,000 but does have a converted loft making a third bedroom.
I've spoken to my bank HSBC and got an agreement in principal for a mortgage of 112,000, which I won't need all that, but they can't give me exact prices until Monday when all their new offers are launched.
Sarnie, being a mortgage broker, would you be able to see if there are any better deals on offer please? So far, ive been seeing figures around the £450-£500 mark, which would be roughly rental price as well but will I need permission from the mortgage provider if my circumstances change and decide to rent at a later date?
I've spoken to my bank HSBC and got an agreement in principal for a mortgage of 112,000, which I won't need all that, but they can't give me exact prices until Monday when all their new offers are launched.
Sarnie, being a mortgage broker, would you be able to see if there are any better deals on offer please? So far, ive been seeing figures around the £450-£500 mark, which would be roughly rental price as well but will I need permission from the mortgage provider if my circumstances change and decide to rent at a later date?
Edited by Regiment on Saturday 18th April 20:11
leemanning said:
Regiment - Make sure you get Sarnie involved. He's helped a huge number of people from here secure their mortgages and is far more effective than going direct to your bank. Good news on the offer though and congrats
Agree with this, he will get you a better deal than HSBCThat's a brilliant amount to save, fair play.
If the house next door is a good investment and is likely to appreciate/you can add value to it through renovation then go for it.
If it's just somewhere to live I would stay put and keep saving for a year to really hammer down your mortgage rate when you do buy. It'll feel more satisfying to properly fly the nest rather than staying next door. IMHO of course.
If the house next door is a good investment and is likely to appreciate/you can add value to it through renovation then go for it.
If it's just somewhere to live I would stay put and keep saving for a year to really hammer down your mortgage rate when you do buy. It'll feel more satisfying to properly fly the nest rather than staying next door. IMHO of course.
Regiment said:
Now the house next door to where I am currently, currently at home with mum
I'm 31, 32 in June, so bit annoyed I'm living at home.
Moving next door isn't much better. I'm close with my parents and like to live close, but moving next door is not much different to living at home! I'm 31, 32 in June, so bit annoyed I'm living at home.
It's more to do with being close to the dogs so I can walk them easily plus it's a great house at a good price.
carreauchompeur said:
That's a brilliant amount to save, fair play.
If the house next door is a good investment and is likely to appreciate/you can add value to it through renovation then go for it.
If it's just somewhere to live I would stay put and keep saving for a year to really hammer down your mortgage rate when you do buy. It'll feel more satisfying to properly fly the nest rather than staying next door. IMHO of course.
I do see it more of an investment, I don't want to be there permanently at all and there isn't anything to do up, all brand new stuff. The lady needed a very quick sale so price was good.If the house next door is a good investment and is likely to appreciate/you can add value to it through renovation then go for it.
If it's just somewhere to live I would stay put and keep saving for a year to really hammer down your mortgage rate when you do buy. It'll feel more satisfying to properly fly the nest rather than staying next door. IMHO of course.
Edited by Regiment on Saturday 18th April 20:20
Simpo Two said:
Regiment said:
Will £3500 be enough to cover moving fees
You won't have much of your own furniture so 2-3 trips in an estate car should do it NB Mortgages tend to last longer than girlfriends...
I wouldn't choose to live next door to parents btw
Regiment said:
Is a £26,000 salary enough to live comfortably with a £500 mortgage?
Take your net pay, deduct £500.Ask your mum what the household bills are, deduct all of those
Put some buy for the "oh s
t" moments - redundancy, boiler failing, roof leaking etc etcDeduct mobile phone bill/car loan or whatever other things you may currently be paying.
Would you be happy with living on that ?
If not, the house may still be worth it as an investment/BTL. You need to do your homework on that though.
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