30K per year

[Charazarpop]

Just turned 30 and I'm earning 30K per year. Relatively junior in a professional job. Live in the Midlands. Do you think thats an OK salary? Enough to live on? I'm looking at buying a 180k house. Mortgage will be 500 pcm.

I'm rubbish at dealing with money. Ex DP used to do it all. I can't work out what position I will be in once I'm alone and self sufficient.

Depends on what you want from your lifestyle. Can you cover everything you need plus other purchases/experience for leisure?

Yes definitely. I'm on an equivalent salary and bought our house for £180k a few years ago. DH is on less money. We overpay on the mortgage, manage at least one good holiday a year (2 weeks in Cornwall or something like that) and aren't skint. We have one DS 5.

It's a decent salary - UK average is around £26k.

But I doubt you'll get a £180k mortgage. Typical mortgage used to be 3x salary, I believe it's now 4.5x salary Which

So you'd need around £45k equity to buy a £180k house.

I've had a look at estimated repayments. How are you getting a £500 monthly payment? Either you've got some really good equity, or you're only paying the interest. Sorry if I'm getting the wrong idea, but do you understand the difference between a repayment and interest-only mortgage?

There is some good information on money saving expert

Yes it's a perfectly fine salary. If you're paying £500 a month mortgage you earn enough to pay that so I'd say it's fine.

A lot of lenders are now providing 5 x salary - so the mortgage should be ok. I assume you have almost paid the mortgage off? 500/mth is reasonable as an expense - just make sure to budget another 500 for fixed bills etc inc council tax.

Some of it will depend on your other expenses as to whether a lender thinks its affordable for you. Do you have any other big commitments like loans, credit cards, childcare costs?

2k a month take home
500 mortgage
Council tax; water: electric and gas: insurance: WiFi: tv license, food, phone
Travel/ running a car?

It’s perfectly manageable maybe not fantastically high standard of living but a great start

Would you be interested in having a lodger who would pay some rent which could go towards the mortgage?

People consider different things a "good" salary - depends on your qualifications, experience, and what your job is.
It is, however, above the average salary, so, as you are young, with nigh on 40 years ahead of you to continue your salary, then it is good.

However you will need a good deposit to but a £180K house. Even if you borrowed 4x your salary, you could only borrow £120k

£500 payment is a mortgage of about £100k over 25 years Do you have £90k deposit for the rest and fees?

Most lenders will give you 4.5x salary so you could borrow up to £135k if needed

Yes it's a good salary.

You need to budget. Not by counting all the takeaways and coffee you buy first but by working out your essential non negotiable outgoing first. Then allocating money to saving etc then work out what you can afford for treats.

Look into the fire movement for tips.

You may not be interested in fire but it3has great hints.
Then work on investing, stocks and shares is a.

I just don't understand how you could get £180 mortgage on £30k per annum unless you have a huge deposit? What is your deposit op? If you take out a new mortgage get one with a long fix as mortgages are on the up.

It might well be manageable just looking at outgoings (though we don't know if there is any childcare or any debt) but that doesn't get round the fact it won't get her a mortgage big enough to buy a £180K house, without a stonking great deposit.

I’m on the exact salary and pay £693 rent per month in London and live a very comfortable lifestyle. Obviously if you have kids or debts though I’m assuming it might be different for you

Also if you’re a FTB, look at Nationwide, I just got an agreement for their 5 x salary mortgage

Yes sorry I should have mentioned I have about 50K to put down as a deposit on the house from an inheritance. So I'm not worried about that.

I think a £500 mortgage payment on that salary is fine provided you don't have any other significant monthly outgoings apart from the usual food, council tax etc.

Ah right, well with that very crucial detail, then yes, you will more easily find lenders willing to lend you a higher multiple of salary, as their risk is lower with a lower ltv mortgage. Plus, you will be able to get better interest rates than if you were borrowing more.

Don't forget your finances will be 'stress tested' as part of the mortgage application.

Which means that you don't just need to afford a mortgage now, but also with the interest at a much higher level. It might be that you're not quite there now, but could be in a couple of years time if you increase your deposit and your salary goes up too as both will improve the income multiple required and affordability.

With a good deposit, it is possible, but don't forget about fees and moving costs.

Look on Moneysaving Expert for the first time buyer's guide and make sure you have a lifetime ISA for the government top up.

Yes it's a decent salary.

Where u getting £500 a month from though? Do u have a big deposit? Our house was about same price but we put down nearly £70K deposit. So mortgage was about £110K over 25yrs and mine is £475 or so a month.