Mr Man said:
Perhaps, but it really depends on the mortgage payments. I currently pay £475 a month in rent, but when I looked into 100% mortgages on similar properties, the minimum payment would have been £800 a month.
How do you do it?
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Perhaps, but it really depends on the mortgage payments. I currently pay £475 a month in rent, but when I looked into 100% mortgages on similar properties, the minimum payment would have been £800 a month.
Thanks for your opinions and experiences guys/girls/inbetweenies.
I am considereing renting, just for the fact I can rent in town very close to work from £400 to £475 a month for a two bedroomed place. You don't get anything smaller really, and usally above the highstreet shops for the same money.
I could pay just as much back on a mortgage and be free with what I want to do with the place and not worry about strict tennancy agreements, the only thing is the added costs of using the car more to get to work.
I have thought of getting a 110% mortgage if possible, to pay off my car and other tidbits. That should leavw me with some headroom for saving on top of the necessities.
As for broadband, I hardly see that as a luxuary. You get get all in one packages these days with phone, 2mb broadband and even TV for £30 all in a month, maybe even less. I hardly watch TV anyway.
Lucky with the 25k
My girlfriends mum said we'd be mell off when her grandparents croak it as they have a bit of cash behiend them. Cruel I know, and not my money either!
I am considereing renting, just for the fact I can rent in town very close to work from £400 to £475 a month for a two bedroomed place. You don't get anything smaller really, and usally above the highstreet shops for the same money.
I could pay just as much back on a mortgage and be free with what I want to do with the place and not worry about strict tennancy agreements, the only thing is the added costs of using the car more to get to work.
I have thought of getting a 110% mortgage if possible, to pay off my car and other tidbits. That should leavw me with some headroom for saving on top of the necessities.
As for broadband, I hardly see that as a luxuary. You get get all in one packages these days with phone, 2mb broadband and even TV for £30 all in a month, maybe even less. I hardly watch TV anyway.
Lucky with the 25k
My girlfriends mum said we'd be mell off when her grandparents croak it as they have a bit of cash behiend them. Cruel I know, and not my money either!vonhelmet said:
Well every single payment you make does knock something off the mortgage.
It's just that during the early years of your mortgage indeed you are paying less of the "actual amount" than you do later on.
We're only a year into our mortgage however each of the payments we've made has added something to the £20k equity (our deposit) already on the house.
However it is the same no matter when you start your mortgage - if you get one now or in 10 years time, those first 5 years don't add that much to the overall equity of your house.
I'm on just over 20k a year at 21, and have just started renting on my own for £600 a month in a tiny little village - it's tight - but I can scrape a bit of spending money still. Being single i'm still not sure if i may need to move towards jobs/gf's so wanted to avoid buying.
The short of it is really you need to find ways to earn more money - either via uni or just hard graft - that's just how it is at the moment. As your a set couple your plan to avoid renting is probably a good move - try and get that house
keep at it!
james
The short of it is really you need to find ways to earn more money - either via uni or just hard graft - that's just how it is at the moment. As your a set couple your plan to avoid renting is probably a good move - try and get that house
keep at it!
james
stoofa said:
Not necessarily. Like I said, on a huge mortgage, which is what someone on my or the OPs income has to look at, you are only paying off the monthly interest, which does nothing at all to the amount owing.
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Sic said:
Thats what happens if you waste your time doing pointless degrees or stuff thats so heavily oversubscribed that employers can cherry pick the very best.
The IT industry is a classic example, everyone and his dog wants to go and study Computer Science etc so whilst some of the more intelligent ones do get graduate jobs on £30k a year with big companies (Hi Pete!), everyone else is left doing normal jobs probably not even related to the degree becuase they picked something where graduates far outstrip jobs.
What i have done is move into a detached rented house, as long as you dont mind living in a bit of a random place then there are very good deals available. I am paying £550pm for a 2 bedroom detached cottage with big drive etc, all because it is in the country rather than a town.
Perfectly doable, i will stay here until my salary rises and i can mortgage enough to buy a decent place
Perfectly doable, i will stay here until my salary rises and i can mortgage enough to buy a decent place
Live at home at you can, and save up. Renting is throwing money away. I can't afford to move out yet (flats around here start at £150k for a scabby 1-bed'er and I want at least a 2.5 bed minimum). I'll probably think of buying a house with friends next year when the lazy ******* get proper jobs, until then I'm sitting tight.
Jez said:What i have done is move into a detached rented house, as long as you dont mind living in a bit of a random place then there are very good deals available. I am paying £550pm for a 2 bedroom detached cottage with big drive etc, all because it is in the country rather than a town.
Perfectly doable, i will stay here until my salary rises and i can mortgage enough to buy a decent place
Surely that sort of money would nearly cover mortgage re-payments though?
the only way is to remove those little and not so little luxuries and accept its going to be damned hard for the first couple of years.
i mean those things we take for granted, going to the cinema, restaurants, upgrading your PC, things like that.
I suggest you right down everything you spend for a month or two.
put it in a spreadsheet, record whether it was absolutly needed or not and you would be suprised how much you manage to lose.
examples are:
how much on going out on the weekend?
how much a month on entertainment?
once you have done that, factor some back in (all work and no play makes jack a dull boy) but keep tight control.
i managed by doing tihs to save an exta £5000 a year, which helped me get my first house. i'm 28 and live in brum (not as cheap as some places)
i mean those things we take for granted, going to the cinema, restaurants, upgrading your PC, things like that.
I suggest you right down everything you spend for a month or two.
put it in a spreadsheet, record whether it was absolutly needed or not and you would be suprised how much you manage to lose.
examples are:
how much on going out on the weekend?
how much a month on entertainment?
once you have done that, factor some back in (all work and no play makes jack a dull boy) but keep tight control.
i managed by doing tihs to save an exta £5000 a year, which helped me get my first house. i'm 28 and live in brum (not as cheap as some places)
vonhelmet said:
As a poster said on page one - that would be an Interest Only mortgage and something different all together.
If you take a "normal" mortgage then every month you do pay off some of the amount you've borrowed - it isn't all interest.
Sure during those first few years you are paying more interest than you are off of the mortgage amount, however there is always something being paid towards the base amount, a few more bricks are yours.
If this wasn't the case then as said you'd never actually pay the loan back.
Interest Only mortgages are a different matter and they were not something that interested me.
I know (touch wood etc) that at the end of 25yrs (hopefully less of course, I overpay if I can etc) our house is ours.
Desmo said:Not true
I certainly cant see how, unless i was given a load of cash to put down as a deposit and earned a very high salary for my age.
Lets take a flat @ £200k, maybe get it for £190k if you are lucky with lots of negotiation.
I have around £10k in my bank which has taken me about 1.5 years to save (i spend a lot on luxuries which i could cut back too).
I could save up another 9k in order to have my 10% depostit, but then i still have around £170k left to find. Going on most lenders limits of around 4x then i need to be earning £42,500 just to get approved.
Not easy
Jez said:I certainly cant see how, unless i was given a load of cash to put down as a deposit and earned a very high salary for my age.
Lets take a flat @ £200k, maybe get it for £190k if you are lucky with lots of negotiation.
I have around £10k in my bank which has taken me about 1.5 years to save (i spend a lot on luxuries which i could cut back too).
I could save up another 9k in order to have my 10% depostit, but then i still have around £170k left to find. Going on most lenders limits of around 4x then i need to be earning £42,500 just to get approved.
Not easy
My girlfriend went through a mortgage broker and got £175k and shes earning under 30k - its possible
And before you ask I dont know any more details although if your interested in possibilites I shall look into it..I did not read the trhread in detail but here is what we did.
First we stayed in a house we rented form a friend and we payed rent, at that time we were 20 years old.
After 2 years we earned enough to buy a small 2 bedroom house with a very small garden (more a flat than a house) and in the beginning we had to give up some luxeries to be able to pay the mortgage.
6 years later the house we bought was worth €40,000 more and we also earned more so we could move to a much bigger house and we again have to watch what we spend our money on.
In other words start small and as you earn more money and your house increases in price you can afford something bigger after a while.
First we stayed in a house we rented form a friend and we payed rent, at that time we were 20 years old.
After 2 years we earned enough to buy a small 2 bedroom house with a very small garden (more a flat than a house) and in the beginning we had to give up some luxeries to be able to pay the mortgage.
6 years later the house we bought was worth €40,000 more and we also earned more so we could move to a much bigger house and we again have to watch what we spend our money on.
In other words start small and as you earn more money and your house increases in price you can afford something bigger after a while.
Its not true that its always been impossible - plenty of husbands used to be the only bread winner in the household.
My dad for one.
These days though, its very hard as the difference between salary and house price is such a higher multiple. Thats why the average first time buyer is so old now, I heard for London its around 35 yrs old?
Luckily I bought a house last year with my bro, very lucky to be able to do that as I have no intention of settling in with a lady just yet.
My dad for one.
These days though, its very hard as the difference between salary and house price is such a higher multiple. Thats why the average first time buyer is so old now, I heard for London its around 35 yrs old?
Luckily I bought a house last year with my bro, very lucky to be able to do that as I have no intention of settling in with a lady just yet.