Mortgages - how do people do it?

[PiKe]

Really wanting to move out, turning 30 in just over a year now and I'd previously set myself a goal to move out by then.

I've worked out that I can get a mortgage of £120,000 based on a deposit of £47,500, problem being that's pretty much all the money I have.

I have sat down and thought about all my outgoings to realise it's going to be practically impossible (and boy is that depressing).

Monthly
Earnings £ 1,103.10

Car Tax £ 22.92
Car Insurance £ 25.00
Petrol £ 220.00 (40 miles round trip a day)
Electric £ 41.65
Gas £ 44.84
TV Licence £ 12.13
Phone & Internet £ 26.05
Council Tax £ 101.53
Food £ 240.00
Water £ 32.92
Mortgage £ 314.00
Car Maintenance £ 29.17
Mobile Phone £ 8.00

Disposable income -£ 15.09

That's without buying furniture! So, before I lose the will to live, who else is in this predicament?

My parents are as understanding as ever and simply said, well everything will be yours when we're gone. Not only is that morbid (I get a house but lose my parents? Great), but I'm going to be well into my 60's before they've passed on.

Living at home into my 60's scares the crap out of me.

 

[rG-tom]

a) how have you saved £47k when you earn so little
b) why do you earn so little at 30?
c) people do it by earning more

 

[FishFluff]

Basically, you need a better job.

 

[One More Solo]

Realistically you either need to reduce your outgoings (which looks difficult) or get a better paying job.

 

[Deleted member 66701]

Get married, share bills

I earn £24k (part time, 3 day week) so I married someone earning £60k

 

[Trig]

Move in with someone else, you not got a woman you'd want to live with or anything like that, having to only pay half towards stuff helps...

 

[ci_newman]

People do it by sharing the costs with someone else, be it with a partner, house share etc.

Also, a take-home pay of £1,100 isn't really enough to support buying a mortgaged house.

You haven't accounted for house-purchasing costs either, solicitors, surveys, mortgage arrangement fees etc.

 

[Solaris]

Get a girlfriend, date for a while, and move in together.

Move in closer to work.

Share the mortgage on a 2 bed place with another first time buyer.

Get a better job.

 

[Liquid_Entity]

I'm 35 in May and have £0 savings but am earning £1600+ a month. I could easily afford a mortgage, I just don't have the possibility of a mortgage due to not having any deposit !! It will be another 4 or 5 years before I can get any kind of deposit together.

 

[randomshenans]

lol at Tom. He's right though.

 

[rotters]

Yup share the bills, you could buy with a mate, if you haven't got a mrs. Or look for cheaper properties.

What type of property are you looking at? because a 1 bed flat needn't be £120k in some parts of the country.

 

[rG-tom]

another option is to look for somewhere closer to work so you're spending less on fuel and maintanence, or get a cheaper house. or both.

 

[hyperst]

girlfriend?

buy a house when there is 2 of you to contribute, no point moving out if you are single and cannot afford it anyway, plus how you managed to save £47,500? try doing that again and buying a house outright.

 

[PiKe]

Get a girlfriend, date for a while, and move in together.

Move in closer to work.

Share the mortgage on a 2 bed place with another first time buyer.

Get a better job.

Have a girlfriend but she's in education so isn't earning at the moment.

Closer to work is impossible for that budget, I live in the Lake District.

 

[Trifid]

Get a place within walking distance of work.

IMO you are cutting it far too fine and also need to put less money into the deposit for all the fees and get the essential furniture and bits and pieces for the house.

 

[Jez]

Also, a take-home pay of £1,100 isn't really enough to support buying a mortgaged house..

Its not a take-home of £1100, its a take home of £880, or a salary of just under £12000 per annum. (He has £220 worth of fixed commuting business cost which presumably is not reimbursed).

The figures do not work for moving as this is a very low salary.

 

[PiKe]

Its not a take-home of £1100, its a take home of £880, or a salary of just under £12000 per annum. (He has £220 worth of fixed commuting business cost which presumably is not reimbursed).

The figures do not work for moving as this is a very low salary.

It is take home of £1100 actually.

The commuting is based on affordable property 20 miles away (I currently live 4 miles away).

So basically, I leave an already struggling business (my boss isn't paying himself) and drive the final nail into the coffin for them.

 

[Gilly]

Closer to work is impossible for that budget, I live in the Lake District.

Move elsewhere to get a better job and be able to afford a house.

That's a huge deposit you have right there, but your earnings are far too low to meet any mortgage requirement.

 

[hyperst]

Rent closer to work, so you can cycle and dump that money pit of a car, dump current non earning (sounds young for a 30 year old to be dating a student) girlfriend and replace with a high earner, all problems solved

 

[Solaris]

I'm 35 in May and have £0 savings but am earning £1600+ a month. I could easily afford a mortgage, I just don't have the possibility of a mortgage due to not having any deposit !! It will be another 4 or 5 years before I can get any kind of deposit together.

I'm in the same boat (all be it 10 years younger)... Banks are lame...