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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

AIBU to hope I can afford to buy a little flat?

53 replies

Crash123 · 30/10/2023 22:56

After a 2022 from hell - a breakup followed by bouncing from flat to flat trying to get back on my feet, I've had an offer accepted on a flat... and now I'm freaking out! I really, really want somewhere stable, where I'll never have to leave unless I want to. But I don't want to get in over my head financially. I am pretty frugal, but I don't want to be stretched so far that I cannot enjoy myself, or spend my whole life staying afloat.

Looking at rooms to rent, the prices were almost as high as the mortgage I'd be paying, though obviously the bills are a lot higher going solo, and there's a lot more responsibility owning a flat by myself.

In my day job I earn roughly 45k / year, or 2500 per month, and have a second job waitressing where I earn approx 150-200 extra per month, and could pick up a few extra shifts if I need to make a bit of extra money.

The flat I'm buying has 2 bedrooms, and I am considering getting a lodger (some short term ones, I think, or Monday to Friday ones so I can still have some alone time). My mortgage allows for this.

I have no kids or debt.

Here is the rough monthly budget I have set up based on what I currently do. I've estimated a little high to give myself some breathing room, and can (and likely will have to) cut down on some of these if I need to. I come out to a slight deficit so.. I probably will need to.

Bills:

  • Mortgage - 1100
  • Insurance - 30
  • Council tax - 130
  • Water, gas, electricity, etc - 170
  • Internet - 60
  • Phone - 20

Misc:

  • Groceries - 250
  • Eating out 100
  • Work lunches / coffees etc - 50
  • Transport - 150
  • Hobbies - 100
  • Netflix - 15
  • Haircuts, eyebrows, etc - 50

Savings:

  • Holidays / savings for holidays
  • 150- General saving - 300
  • Saving for flat maintenance - 100

Thoughts? Will I be OK?

OP posts:
namestevalian · 30/10/2023 22:58

Have you modeled out future interest rate increases and bill increases etc

I hope you can make it work!

UnderwaterSpaceCadet · 30/10/2023 23:00

Does the flat have any ground rent / service charges? Couldn’t see that in your budget.

Midwinter91 · 30/10/2023 23:02

With a lodger, you will be fine.

Mum5net · 30/10/2023 23:04

Been doing a excel budget sheet with DC whose back home for two days on exactly same thing.
Is there ground rent or service charge?
Are you going for 5 yr fix?
are you saving for a pension?
looks doable with your options to earn more from shifts and lodger

Original poster
Crash123 · 30/10/2023 23:13

namestevalian · 30/10/2023 22:58

Have you modeled out future interest rate increases and bill increases etc

I hope you can make it work!

Oof - nope. I'm going for a 5 year fixed rate on my mortgage though so I'll know what I have coming out till 2029.

OP posts:
Original poster
Crash123 · 30/10/2023 23:14

UnderwaterSpaceCadet · 30/10/2023 23:00

Does the flat have any ground rent / service charges? Couldn’t see that in your budget.

Ahh thanks for this! They're both minimal - 10 pounds per year / peppercorn. So at least there's that.

OP posts:
namestevalian · 30/10/2023 23:18

Very good news re charges as that could have been issue.

I think I'd consider stress testing yourself on mortgage - have you already got agreement in principle?

UnderwaterSpaceCadet · 30/10/2023 23:21

As the charges are that low, I’d probably tweak the savings a bit so you’re saving a bit more for maintenance and a bit less for general savings but it does look really doable with extra shifts and / or a lodger

ThinkingAgainAndAgain · 30/10/2023 23:21

Moving costs - solicitors fees and disbursements, removal van

Initial coats on moving in - you’d be surprised what you might need pretty much immediately eg household items (basics, like a doormat, sweeping brush etc)

Would your clothes, shoes, things like bedding, towels etc, and furniture and soft furnishings be coming out of the general savings?

PurpleSaturday · 30/10/2023 23:24

£300 is generous for 1 person for food and lunches.
My gas/electric is £40 summer and £70 winter for a 2 bed flat.
Internet is about £30 not £60

Mosaic123 · 30/10/2023 23:25

Possibly you could cut down in your internet cost? Plusnet is about half of what you pay.

But yes it looks doable.

Original poster
Crash123 · 30/10/2023 23:25

Mum5net · 30/10/2023 23:04

Been doing a excel budget sheet with DC whose back home for two days on exactly same thing.
Is there ground rent or service charge?
Are you going for 5 yr fix?
are you saving for a pension?
looks doable with your options to earn more from shifts and lodger

Oh interesting! How does mine stack up? would you be OK with your DC living off my budget?

The ground rent and service charge are none / peppercorn, and I'm going for a 5 year fixed mortgage so I'll know I have stability there till 2029. Eek!

And luckily, my work has a good pension, and the amount I bring is excluding my work pension savings. It still probably won't be enough to retire on, but it's a start.

And thanks. I hope I don't need a lodger long term, but it's a good option to help me build my savings up a bit / get me out of any financial binds.

OP posts:
Original poster
Crash123 · 30/10/2023 23:27

namestevalian · 30/10/2023 23:18

Very good news re charges as that could have been issue.

I think I'd consider stress testing yourself on mortgage - have you already got agreement in principle?

I do indeed! I'm borrowing the max that I can afford, though, which is a bit scary. I want to get a place of my own, and since I'm going solo and live in London, it was always going to be a stretch.

I just am having a bit of a wobble and want to make sure I'm not signing my life away.

OP posts:
Original poster
Crash123 · 30/10/2023 23:31

UnderwaterSpaceCadet · 30/10/2023 23:21

As the charges are that low, I’d probably tweak the savings a bit so you’re saving a bit more for maintenance and a bit less for general savings but it does look really doable with extra shifts and / or a lodger

Oh that's a sensible shout - thank you.

OP posts:
Original poster
Crash123 · 30/10/2023 23:33

ThinkingAgainAndAgain · 30/10/2023 23:21

Moving costs - solicitors fees and disbursements, removal van

Initial coats on moving in - you’d be surprised what you might need pretty much immediately eg household items (basics, like a doormat, sweeping brush etc)

Would your clothes, shoes, things like bedding, towels etc, and furniture and soft furnishings be coming out of the general savings?

Thanks for this. I have a bit tucked aside for moving costs and (Facebook Marketplace) furniture, though flat set up will absolutely cost more than I think so thanks for that.

And yes, clothes etc will come out of general savings, so I should probably try to up that a bit.

OP posts:
LookingWest · 30/10/2023 23:35

Only you will know if the lodger aspect is feasible, spare room app should give a good indication of current going rate in your area. I had a lodger for a while and used that to save for a new boiler and bathroom refit. I didn’t love having a lodger (although she was great as a person) but it was worth it for the financial cushion. On your figures it looks doable - additional costs - annual gas service (can go under maintenance savings but essential especially with a lodger - unless fully electric?)

Don’t kid yourself into viewing the holiday pot and the maintenance pot as savings, they are separate budgets you are expecting to spend, but £300 saving a month sounds good

Original poster
Crash123 · 30/10/2023 23:41

PurpleSaturday · 30/10/2023 23:24

£300 is generous for 1 person for food and lunches.
My gas/electric is £40 summer and £70 winter for a 2 bed flat.
Internet is about £30 not £60

Ahh that's good to know that 300 might be a lot so I can cut down if needed. I do love to cook... which means I can be frugal but also can end up wanting to experiment and try different recipes as a hobby.

OP posts:
Original poster
Crash123 · 30/10/2023 23:45

LookingWest · 30/10/2023 23:35

Only you will know if the lodger aspect is feasible, spare room app should give a good indication of current going rate in your area. I had a lodger for a while and used that to save for a new boiler and bathroom refit. I didn’t love having a lodger (although she was great as a person) but it was worth it for the financial cushion. On your figures it looks doable - additional costs - annual gas service (can go under maintenance savings but essential especially with a lodger - unless fully electric?)

Don’t kid yourself into viewing the holiday pot and the maintenance pot as savings, they are separate budgets you are expecting to spend, but £300 saving a month sounds good

Yeah, I strongly prefer living alone, but I think I could deal with a Monday to Friday subletter, or some short term stays. I'm in London and Facebook is full of people hunting for a place so I'm hopeful I could find someone. But if not, or if I can't cope with it, I could work extra waitressing shifts if I needed.

And yeah, that's fair about separate savings pots. I try to keep them in separate pots, but they will hopefully end up getting spent!

OP posts:
Fleur405 · 31/10/2023 00:00

I’d say work out what you can afford on your salary from your main job only. If you can afford the essentials plus a little contingency for price rises (even if mortgage is fixed other costs can go up) even if it means no holiday money etc then along with your second job plus the option of a lodger you should be good and have a bit of flexibility. If you do get a lodger I’d save the income towards flat maintenance/ emergency fund.

Abitofalark · 31/10/2023 00:35

You are set fair and well done on getting your flat even though it's a big step and scary on your own. The first rule is not to panic and let it overwhelm you. Trust yourself. You are capable and will overcome and manage very well.

You could probably halve food and internet and phone without too much effort. Your allowance for energy may be a bit tight - I've found electricity is surprisingly steep and it is all too easy to consume a lot of gas heating - but there are many variables that could affect this. Are you on a water meter, is the flat well insulated and what type of heating, which providers etc.?

As you say, it's a rough budget and you need to do a proper detailed one, with allowance for clothing, dry cleaning, household cleaning, electrical and electronic purchases, furnishings, linen, crockery, pots and pans, lighting, decorating, torches, batteries and basic tools, repairs and maintenance (insurance excess), occasional events and invitations, concerts, outings, weddings, day trips or weekends away, incidental expenses such as present-buying and family and no doubt other headings that will emerge as you work through.

madamehooch · 31/10/2023 02:48

As there is only a minimal service charge payable, check the lease first for your obligations regarding repair and maintenance of the structure and communal areas. I would strongly recommend putting aside some money every month to cover any costs relating to this.

Mercurial123 · 31/10/2023 02:57

Having minimal service charges would be an issue for me. Hopefully, the survey comes back noting a well maintained home. I've walked away from similar properties as the properties have been so badly maintained.

marshmallowfinder · 31/10/2023 03:31

I'm in a small 2 bedroom flat and we pay 280 per quarter for maintenance fees to cover cleaning communal areas, building insurance, window cleaning, fire alarms, gardening and saving for bigger jobs (roof repairs, car park maintenance, new hallway carpets etc etc. This is still low for a flat apparently.) How on earth are there no fees at your place? Very worrying, since it means you'll need to shell out large, unforseen sums when problems and repairs come up and there's no sink fund. Are you sure that's right, OP? Seems quite precarious to me.

Caspianberg · 31/10/2023 04:56

What you could do is look at getting a lodger for the first 5 years. Yes it’s a bit annoying sharing, but the extra lodger payments you could use to help set up flat and to overpay on mortgage. Then in 5 years time when mortgage fix rate end man you would have already overpaid at a time when then interest is the highest and should be able to keep mortgage around same or even lower.

Totaly · 31/10/2023 05:07

I did similar when young. I also had a lodger.
Food budget is high but that’s a good thing.
My first home made £20K which made moving to a bigger place easier. The next house make £50K which then helped with moving again. Current home we have £250K equity. It builds up.

This is what you should also think about for the future. You’ll lose less money when you buy.

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