How to buy our first home as a young couple?

[Tortoisehelp]

We are both 20, we both work full time (I own a business so unfortunately slightly lower pay). We earn 30-35k combined. We’ve been together for 3 years, and currently live in a tiny studio flat with our dog. We are looking to get our first home, we want to stop renting so that our dog can have a private garden to run around, and so that I can set up something relating to my business in the garden. How do we go about getting a mortgage? What steps do we take? We are both estranged from our parents so we don’t really know what we’re doing!

Talk to your bank.

Either speak to your bank or approach a mortgage advisor. You would typically need a mortgage in principle before you start looking at properties. Good luck!

Even on minimum wage you would earn more than that on a combined income so I guess you can't afford to have your own business if it doesn't make much of a profit.

https://www.moneysavingexpert.com/mortgages/buying-a-home-timeline/

you'll need to up your income.

Do you have a deposit? If not, you need to start by saving up for one!

You won't get much of a mortgage on that salary but it depends which area you live in, you could definitely buy something round here for that much - maybe not with a garden though.

also bear in mind that you can't just run a business in the garden of a residential property!

Sounds like to you need to job alongside/instead of your business.

It depends how much properties are where you live - have a look on Rightmove to get an idea if you haven’t already.

How much savings do you have between you?

Typically, banks will lend around 4x income and the rest of the purchase price has to come from your deposit. You will need to speak to a mortgage adviser who can deal with self employment income. Don’t just assume your daily bank will give you the best rates.

Remember you will also need savings to pay for the other costs that come with buying a property, eg solicitors fees, Stamp Duty (depending on the price of the property) and furniture.

You might, if you don't have visitors. My business is online and I could run it from a shed.

Bluntly, OP, you need to wait till you become a less young couple, and save like mad in the interim. I think I was 33 when we bought our first place, which was a tiny, ramshackle flat, and that was in 2005. No parental help either. We both took on extra work on top of two FT jobs.

I would consult a mortgage advisor. They'll have lots to choose from and can maybe find you a small bank or building society that will lend to you.

Try first mortgage or somewhere like that. You need a mortgage in principle for what you can afford then you can house hunt. You'll need a solicitor when it comes to buying.

There are some online calculators that will tell you how much you can roughly borrow. I used Halifax.

Good luck!

https://www.moneysavingexpert.com/mortgages/self-employed-mortgages/

Money Saving Expert have a lot of useful articles and this may be useful for you OP regarding mortgages for people that are self-employed. I’m not sure if other posters on this thread have missed the self employed bit or aren’t aware of the potential mortgage implications.

Where do you live? In some areas flat and house prices are astronomically high, making home ownership practically impossible without a high income, family help or private funds. Your current combined income is very low for considering buying. In other areas, house prices are extremely low. Perhaps moving to an area where property prices start very low would help. E.g. for the UK…
https://www.propertyinvestmentsuk.co.uk/cheapest-places-to-buy-a-house-england/