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’s hard but I’d say continuing to live with your family is a no brainier with regards to saving money. It’ll also put you in a much better position for when you do find somewhere as you don’t have to get moving dates lined up, pay rent and first month’s mortgage payment from the same pay cheque, have money tied up in a deposit when you need it to buy furniture, or fork out on estate agency fees.

Every time your family annoy you just remember that money you’ll save by living with them will pay for your furniture!

You need to use the money advice service affordability calculator.

John Charcoal are also very good - they cover the whole of the market and will find you a good deal for you.
Good luck and well done.

If all your have is a phone contract then you need to get yourself a credit card. Use it just for petrol and pay it off in full at the end of every month.

OP you need to go and see a good mortgage broker. They will be able to advise you exactly based on your situation taking everything into account, including your income/outgoings, savings, length of time in job etc and credit score. There are plenty of lenders out there who all have slightly different criteria on things like payslips, length of time in jobs, salary multiples they will lend so it’s almost impossible for anyone to advise exactly.

FYIY I bought my house a few years ago with a lower deposit and lower income for £120k so it is doable but it will be easier for you to look with an exact budget in mind which the broker will be able to give you. London and Country get touted a lot on here but I didn’t like them to be honest, I used a local broker attached to an estate agent. Lots don’t charge a fee as they get paid from the lender when you complete. It’s worth asking around or looking at money saving expert form for recommendations. With COVID it’s easier to use a broker who isn’t local to you as it can all be sorted on the phone and via email. They will have an in depth chat with you and you will then know precisely how much you can spend and what the repayment is likely to be. Good luck :)

£20k sounds like a good deposit to me. You can get decision in principle online.

You'll definitely be able to buy something! £100k deposit plus £17k of your deposit and the remaining £3k for conveyancing and surveys. Hire a van and move yourself and get on free pages for all your furniture!

I'd get six months pay slips, and a tad more savings. Definitely doable. When we bought our house, we didn't buy furniture. People knew money was tight, and just gifted us stuff and treated themselves to new. Also my granny died and we had her furniture and white goods. It got us started.

£100k mortgage not deposit!

It is definitely doable! I did it on much less. Speak to an independent broker. Maybe consider an interest free mortgage which will be cheaper just to get you in.

Your furniture could be second hand or gifted. IKEA stuff is good value.

I'm so excited for you!

Hi OP - just wanted to let you know from my own personal experience that this is completely possible! I earn 25K, and had a deposit of 20K. I was approved for a mortgage and borrowed 105K. I bought my own home by myself for 125K. I'm based in the Midlands. Fees were roughly 1.5K for solicitors.
I didn't have any money for furniture, but happily saved slowly to buy these whilst living in my new home.
I hope this helps

You don’t need six months’ payslips. You can get a DIP with just a job offer, although your lender options will be limited. I know this because I was looking to buy earlier this year when I had only just started my new job. I’m on £26k and can borrow approximately £115k; that’s with Halifax. My broker sorted me a DIP within a few hours. I pay him £250 when the mortgage is approved; he is whole of market and has access to deals not available on the high street so it’s worth finding a broker.

I am wary of using those attached to estate agents because I don’t want my full financial situation being available to the agent. I also had a dreadful experience with a conveyancer attached to the estate agent who pretty much threatened to jeopardise the purchase if I didn’t go with them.

I was completely skint when I bought my house; my furniture was all second hand. It was fine though! You just make do until you can afford better. I will suggest having some sort of redundancy or critical illness cover though. Contrary to what people think, this isn’t necessarily a condition of your mortgage, but it is advisable if it’s not.

Oh and go through your full credit report and check you’re on the electoral roll before you apply for a DIP.

Definitely doable in Manchester. As far as furniture goes - Facebook marketplace is your friend!

Here you go:
4 bed in NW between Preston and Blackpool for £127,500

Rightmove

You should be in with a chance of getting a mortgage if you can be a bit flexible on area.

I agree about getting a credit card - use it once a month and pay it all off each month as that helps your credit rating. My comfortably-off sibling had a poor credit rating as they'd never needed/had a credit card or mortgage or a phone contract.

YY to getting a credit card. Also download the Moneysavingexpert first time buyer's guide for everything you need to know about the costs, process and pitfalls. Also make sure you have a LISA to get the government top up for your deposit.

Try to pay at least 10% deposit as that will make your mortgage rate cheaper if you qualify for a 90% rate not a 95% one.

Can you stay in your current job until after you have bought as you will qualify for a bigger mortgage if you think you need one (although make sure you can afford mortgage payments if you move to the lower paying job afterwards).