Can I afford a house?

[ThisIsFine]

I have 150k in this house but my pay is poor so I don't think I can borrow much at all. Houses in this area are expensive and I think I'd struggle to get anything decent below 300k. So I don't know how I'm going to do it - I suppose my only options are earn more or move to a cheaper area? ☹️

...to clarify current house is family home but split is looking likely. Unmarried.

You have £300K equity between you in the house? And will this be evenly split on your separation?

How much do you earn and where do you live?

Are there cheaper areas not far from you?

A flat? Shared ownership?

250k equity - I paid 150k & he paid 100k. I currently work 16 hours a week and earn £10 per hour 😕 but would see if I could increase my hours before trying to apply for a mortgage.

What can you get for 150k? Maybe a small flat? Obvs you can’t afford a 300k property as on £160/week, it’ll probably be tight to even pay bills and support yourself without mortgage payments.

You'll need to earn about £30-40k to be able to get a £150k mortgage on your own as you need to meet a 4-5x max income multiple. Have a look at online calculators to check.

However, if you moved somewhere where you could buy a suitable property outright, you'd only need your wages to cover your living costs - you'd get a 2 bed semi at least in many northern cities and you should be able to find work relatively easily. Will you have DC living with you?

Maybe buy a 150k house up north as a buy to let until you are in a position to work more hours? I'm no property expert though so maybe this is a terrible idea. It would likely effect any universal credit you'd be entitled to.

I'm surprised you're asking. At the moment you earn £160 per week. How is that going to cover food, bills, living costs ... plus even a tiny mortgage?

How big a house do you actually need? Do you have kids and if so how many? Pets?

Well no, in your current situation of course you can’t. £160 to pay mortgage/bills/food/transport/everything else you need?
You need to look at increasing your pay (are you in a position to work full time?).

Is there no way you can stay in the marital home? People do sometimes if they have dependent children. It doesn't last forever of course but would be a great relief for a while. Do take some legal advice.

They’re not married Bluerussian

I obviously know I need more than £160 per week 😕

I wouldn't move out or attempt to apply for a mortgage until I was earning more. However it is unlikely to ever be 30-40k! I have 2 children.

So there is no mortgage on the house? You and your partner bought it outright for £250k, you paying £150k and him £100k? Has it not gone up in value since you bought it?

Some mortgage companies take into consideration child maintenance, presume you'll receive that, unless it's 50/50 care or the children won't live with you, also child tax credit, although I'm don't believe that is considered.

Is the guy you’re splitting with the children’s father? Have you sought professional advice? I’m not sure about unmarried couples, but Iknoa it’s sometimes possible to stay in the family home until children are older.

And is there anything in your area for 150k?

Nothing in our area for 150k. We bought the house for 600k and paid 250 cash. That's because he earns 80k and pays the mortgage. It was only a year ago so value will more or less be the same. I know I can't do anything just now so I suppose just have to stay put and try to earn more and get saving I suppose.

Is there really not a flat you could buy for £150K?

I live in an expensive part of the south east and just did a rightmove search for 2 beds a maximum of £150K in a 20 mile radius and it has come up with a few options. You are probably looking at a flat above a shop or similar. Something that may need some work. But it's doable. I've no idea what benefits you'd be entitled to, but I imagine something. You could also take advantage of buying at auction as you have the cash, or with the market as it is, making a low cash offer for a property where they are very pressed to sell.

You are in a much better position than some people contemplating a relationship breakdown.

The other option is to use the £150K to rent somewhere you live now. I know that's what couples have to do after a divorce. It would be a shame though as you have a good nest egg which I assume has taken some time aquire.

I've just checked - there is one 2 bed flat but it's pretty awful! Lots of retirement flats and a few park homes but that's it. It would be better to move further away I think... Or earn more! I think I need to take some time to figure it out. Situation isn't dire, I can stay put for now.

That's good that you can time some time and that the situation isn't urgent.
Perhaps, maybe, you could resolve the problems in your relationship?
But either way, you do have options, which is good.
Hope it works out for you OP.