Can someone tell me if I have enough money to buy a house?

[mintmotel]

I have been saving up to buy a house for the last few years with my partner. He walked out a few weeks ago, taking the majority of the savings, so now I will be doing it alone.

I have £20,000. This would need to make up my deposit, any associated fees, and furniture. I have literally no furniture to take with me, but I'm not fussed about starting out with the necessities, 2nd hand etc.

I currently earn £30,000pa. I have been in this job 2 months, but within the industry for 6 years.
I only have a phone contract (£20) and student loan repayments as outgoings.

Ideally I want to change job in the very near future which would drop me down to approx £26,000pa but with potential to climb the ladder quickly.

I am really worried that I will be laughed out of the bank if I ask for a mortgage as a single person with that amount of money behind me. I just wanted someone with a bit more experience to tell me if it's doable or if I need to up my savings pot first.

I live in a Northern City so prices aren't London crazy here.

It depends on what you need to spend, those numbers would probably buy you something for £140-£150k. Does that get you anything where you want to live?

I think you may need to up your savings pot first wherever you live. Are you in rented atm?

I can't help but I congratulate you on your attitude after what must have been quite a setback. I hope you succeed in getting on the property ladder 💐

Expect to be lent 4.5x salary. So you could afford £150k-ish.

Stamp duty wouldn’t kick in I don’t think. Solicitors fees around £1.5k.

Can you get places for that amount where you live?

Speak to a mortgage advisor. They will be best places to tell you and it’s in their interests to get you a mortgage.

You may need 6 months worth of payslips to get a mortgage on your own. Have you looked into this at all? I definitely think it’s doable but it will be tight.

Speak to a mortgage broker. They’ll be able to tell you what the banks will offer you in mortgage terms.

Yes, those were pretty much my figures when I got divorced. I have a lovely home, that I’m super proud of. Nothing fancy, but a terraced house done up nicely.

I’m in a Northern city too.

Oh and I need 3 months payslips and my p60 with each mortgage renewal and I’ve been in my job for 5 years.

On that salary,with a deposit you'd be able to buy in an affordable area. You'd need 3-6 months of payslips depending on the mortgage provider

Do an AIP (Agreement in Principle) application to see what you could afford)
www.barclays.co.uk/mortgages/agreement-in-principle/

It completely depends on the value of property you want to buy. If you can buy a good house or flat for 120k, you won't have a problem. If the type of property you want costs 250k, it would be out of reach for now.

With a £26k salary you can probably borrow £100k. With a £10k deposit that would mean buying a house for £110k, and you’d have £10k to pay solicitors fees and buy furniture etc. Totally doable up north where you can buy houses in that price bracket.

In which Northern city are you looking? Can you get a property of the size you need and an area which is acceptable to you for £140k?

Depends where in the North you are. You would be priced out of the majority of Greater Manchester, Harrogate and Cumbria but in Hull or Preston you'd be fine. Despite what Mumsnet seems to think the north isn't one homogeneous glut of cheap housing. For example it's roughly 30mins drive between lower Darwen in Blackburn and Prestwich which is on the Manchester/ Bury border but a 3 bed semi will cost you nearly double in Prestwich.

The other thing that needs to be considered is your credit rating. Banks won’t lend you as much if your credit rating isn’t good.

It’s definitely doable. Not all lenders require 6 months or even 3 months of payslips either. I just got a mortgage with a job offer letter, I’ve not actually started the job yet. Obviously each person’s situation is unique which is why it’s best to see a mortgage advisor.

You will need to have passed probation at your job.
Call london and country they will get you started.

I also recommend considering a lodger - its tax free income and company it will be very useful whwn you move to the new lower salary job.

I got my second house alone on £30k salary for £130k with a 20k ish deposit (after splitting with ex and selling first house in negative equity).
This was 10 years ago now and interest rates were different then (iirc I got one about 3.5% for my top up, remainder was port of my SVR mortgage).
It was about £400-500 a month think.
But my Mom had to guarantee the mortgage which meant my term was only 19 years (increased repayments).
I also took on a second job which bumped my salary to £37k shortly after buying the house.
I wouldn't have been able to have the same lifestyle without the extra job, but if you can get lower interest rate and longer term things word be easier for you.
Totally doable!!
Good luck!! Getting your first house is awesome.

I'd think about what you can afford rather than what you could be lent! Just because you can doesn't mean you should!

Assuming you live rent free now, try saving an expected monthly mortgage payment, adding a third for utility bills,insurance and home maintenance. If you pay rent now, figure that number and deduct rent.

If its uncomfortable to live on what's left you know you either need to up your income or get a smaller loan.

Getting a small place and paying it off quick as possie now might be best. Then as your income grows you can "upgrade" and rent out the first place for extra income.

Just to answer a few questions...

I live in east Manchester bordering Cheshire so looking at £120-£160k. Not looking for anything huge it will just be me on my own.

I currently live rent free with family, but we're all driving each other a bit loopy now.
I only have 1 month payslip, I had been made redundant prior so had a year gap.
Might have to look into renting before house purchase if that will hold me back.

I have an excellent credit score, with no outstanding debts other than student loan.

I know its silly but my ex had bought before so I was following his lead. I know he and my family expected me to fall apart, but I've been fab and thriving and will continue to do so.

Thank you all for providing me with your knowledge and experience!

I think £120-£160k might be a big ask based on the numbers you’ve said. Someone more knowledgeable might be along to correct me though.

I would use the lower salary as a guide and work on 3.5 x salary.

Allow £1500 for fees and conveyancing.

What can you buy? Hang in there at home, it's worth it for the saving potential

Oh and buy a 2 bed with a decent sized second bed if at all possible because you can then have a lodger when you change jobs for a bit for extra money

Op you normally need six months in thr role, not sure if that’s changed, but as other posters said you would likely get a mortgage up to about 140, whuch is fine, as ten percent deposit and then the remainder of your savings for costs.

Speak to London and Country. You will need about £3k for furniture and fees altogether.
I got all my furniture second hand and from IKEA. You really don't need much, bed, sofa, wardrobe, chest of drawers, small fridge with freezer compartment and washing machine ideally. The rest you can buy over time. Oh and a couple of tins of paint to do at least one room and some house plants.
If you can stay at home for a few more months you will be in a much better position. Keep your head down, clean the house, cook for everyone, limit the partying and bite your tongue. Short term pain for huge long term gain.