I am looking to move out of my family home in the next 2/3 years but not really keen on the idea of renting long-term.
I’m planning on saving up a deposit & buying a small 2 bed flat OR a one bed in a city (all depends).
I just need some advice on whether this would be possible.
Income: £25k (rising £1k every year) Currently live: North London - looking to move up north - whichever city I can find a job that pays similar in. Job title: I’m a HR Assistant, will have 4 years experience by the time I’m looking to move and will be applying for HR Officer roles.
Current savings:
**Nationwide Flex Savers ** £1,750
**Santander 123 Graduate Account ** £2,000 Moneybox LISA £1,100
And then some bits and bobs in my Monzo/Nationwide Flex Plus account totally around £400
I’m planning on maxing out the LISA allowance for this year - saving £500 a month until March payday and then moving the rest from the Nationwide account as the 5% ends in April.
Outgoings (this is a rough guesstimate) Monzo Loan (for car) £172p/m Car insurance £71p/m Subscriptions around £15 (Netflix, Spotify, Amazon Prime, Audible occasionally) Petrol £80-90 per month
**Pet insurance ** £9.76 per month
**Pet food ** £20 per month
**Mobile phone ** £10
The rest on spending/food etc. Don’t really go out much or buy a lot of things and don’t need to pay other bills.
I save at least £500 a month but sometimes try and push it to £750 when I can. Depends on the month.
Based on my salary and 20% deposit, I can buy a property for (according to calculators) £100,000.
From an affordability point I’d say yes but then again I’m not a bank
If you’re planning on buying a house for £100k you’ll need at least £10k deposit. A couple thousand more for surveys, stamp duty and solicitor fees etc. Then on top of that you’ll need all your furniture. Just the minimum would mean a bed, sofa, kitchen appliances etc - it all adds up to a lot!
Even then you’ll go to make some food and then realise you don’t own a can opener
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phildawson
(Sorry, I will have to escalate this.)
3
You could always try https://where.rightmove.co.uk/ and type in a few post codes of potential jobs just to see what is available at £100k and how far you want to travel from home to work. I think you may need to go fairly north to get a two bed. Birmingham might pay £25k and have two bed flats or nice one bed at that price?
Yeah, I don’t really want a bank telling me what I can afford. I want people who own houses/flats and can help me with all these additional costs that I might not be aware of which is why I’m asking here! A bank could tell me I could afford more when in reality, I’ll be struggling. I don’t want that at all.
I’m planning on saving about £20k from now to then (including what I’ve already saved). My family own a solicitors so I’m hoping they can help me with the legal stuff. Stamp duty, I was under the impression wasn’t a thing for a £100k flat and first time buyer (or am I wrong?).
I already have a new bed/mattress so would just need a sofa and other bits that I can add on once I’m settled I guess. I’m planning on going second hand for these things. The most important was a bed/mattress which I already splashed out on!
Was really curious about the loan and whether it would be feasible to get the mortgage or if I should pay it off quicker? There’s still about 55 months on it.
Yeah, I’m looking at Manchester to begin with. The salaries are pretty high for a northern city & the cost of living is low. I don’t want to be in the city centre, I’m happy to be 15/20 mins out and have looked around at some 1/2 bed flats already - there’s plenty in my budget.
I was also looking at other cities, Nottingham, Newcastle, Leeds, Liverpool etc but they seem to have much lower salaries so not sure I could afford the mortgage etc with a lower salary than what I’m on now - to begin with anyway.
A bank certainly won’t do that. They’re overcautious now so you’ll find they’re on the other end of the scale claiming you can’t afford it when you’re saying that you can
Seems like you’re on track though for setting yourself up nicely. Keep it going
Well 15/20 mins out of central London isn’t that during rush hour either?
Not sure I’ll have to check.
phildawson
(Sorry, I will have to escalate this.)
11
Best way I find is use Google maps to get directions and then “Set depart or arrive time” option and adjust the day/time of departure to see what it thinks is usual for the commute to and from work.
Banks are super cautious. Someone who has just started a new job they’re going to want proof you’re going to keep it for several years too. I’d been working at my job for 5 years and they still wanted a written reference from the employer to be certain I wasn’t going to leave it or be fired.
So whilst the idea of finding a job then moving then getting a mortgage sounds great, you might struggle. I’d move somewhere, get a flat, build up some history (banks also want to know you’re a reliable rent payer) then apply.
My back up plan is house prices drastically fall due to Brexit and I can buy a 2bed flat where I currently live so I don’t have to leave my job/family. But we can all dream.
Affordability etc. aside there is an argument for waiting until you can afford a house you intend to be in for a long time (I.e. a family-sized home, assuming you imagine a family in your future at some point). Stamp duty and other moving costs are very expensive and you may find it more cost-effective to rent until you can afford a home you can live in for 10-15 years. The housing market is not climbing like it did in the 90s (especially not in the north) and so not paying down a mortgage may cost you less than moving from a one-bed, to a two-bed, to a three-bed.
If I were to rent long-term, I wouldn’t be able to afford to buy anything. I also think a 2 bed flat is pretty long term for me. I’m 24 and single. I’m not looking to have a family anytime in the next 5 years at the VERY least and when I do, there’s room for a child in a 2bed flat.
Again, I want to ask about stamp duty - it wouldn’t be applicable in this situation, nor would solicitors fees.
Ah, good point. I forgot there is no stamp duty under £125k. Although why won’t you have to pay solicitors fees?
phildawson
(Sorry, I will have to escalate this.)
19
Yeah unless you have someone you know like a family or friend that is a professional and can do it for free, I would strongly advise not to do the conveyancing yourself and especially so if its leasehold. It might also be in your mortgage Ts&Cs that you can’t do it.
Living in a east Greater Manchester estate most my life, I have never heard it called metro or even the met. Just rarely Metrolink and mainly gettin’ th’ tram .
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