life

Will I be able to afford to buy?

small white house tree home - Will I be able to afford to buy?(if only these style homes were in the UK, they would prob be 4x the price though)

I have been seriously thinking about house buying and working on my budget for when I am working as a nurse. I think I would need £1807 including £400 each month of savings, I’m going to aim for £420 so that I’ll have £5k by the end of the first year. This does include £550 from my OH for bills.

Using basic mortgage calculators I should be able to get between £85-95k with just a £5k deposit on a 20 year mortgage (I haven’t looked at 25 year ones, max would prob be 24 years anyways). I have estimated around £400-600 for monthly commitments.

As I’m getting the mortgage on my own they will base it on me paying for all household bills and disregard my OH’s contributions, unless maybe they accept it with say a formal agreement in place. That however would only go on for another 3 years (after 1 yrs savings) or have ended (after 5 yrs savings) due to retirement. At first I was thinking if would be impossible but I wouldn’t have rent to pay & could cut out the savings (I wouldn’t really) reducing my monthly commitments to £467 (not including food etc). Think that is reasonable and I actually think I may be able to get my own place 🙂

After 1 yrs savings £5040
After 5 yrs savings £25.200

Therefore I am looking for a property max £120k. That doesn’t give me many options where I am now so I may end up moving to somewhere like Littlehampton or Bongor (Littlehampton being slightly better, but neither that great)

At present here are some of the properties I could buy in Worthing

Studio flat 1

Studio flat 2

Neither studio is much to look at but you really don’t get much over this side of the pond. I would totally redo whatever studio I ended up buying.

EDIT: I totally forgot about opening up a Lifetime ISA in April and paying £50 a month into it throughout uni. Not a lot I know but I very much doubt I’ll be able to afford more. I will earn interest on it but the bonus will only be on what I actually pay in.

April 17-20= £600 (50 a month) + 25% = £750 x 3 = £2250
April 20-21 = £4800 (400 a month) + 25% = £6000
TOTAL = £8250

So only £1750 to make it up to £10k after 3 years at uni and 1 year working. This doesn’t take into account interest or any extra I throw at it. Also £36k by my latest goal of owning property!!!

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