Would I be able to buy my own place?

[FurrySlipperBoots]

I have no brain at all so I really struggle to understand financial stuff. I only earn a measly £20k a year before tax. But I do have £60k in savings. Would I be able to get a mortgage for a flat that's being offered at £170k or would they laugh me right out of the bank? The service charge of £2600, which includes buildings insurance, I would be able to pay from extra babysitting money, but I would have my general living costs to consider too, which would come out of my salary.

Do I need to be gently sat down and told its never going to happen or might it actually be a possibility?

I'll probably inherit some money, £10-20k, within the next few years if that makes a difference. I'm guessing not though as anyone could say that!

Moneysavingexpert suggest you can borrow £90K max - so max house £120,000

Anything for that price range in your area?

Thanks GreenTulips! There's just one flat on Rightmove in that price bracket, disturbingly without any pictures of the interior at all - only 3 very much zoomed in shots of the exterior. Hmmm, not holding out hopes for that one! I know you've got to live within your means and everything, but I would love to feel really happy in my home! I just don't want to be flushing money away in rent.

You have to have short term pain for long term gain

First property was ex council in gritty area - did very little and made £30K a few years later paid £35K- second home made £50K in around 4 years.paid £110K Current home we have new boiler, fencing, fire places, flooring, doors etc which all add some value

Loved the first one hated the second love existing

Will sell this soon to downgrade as the kids leave home - should them be mortgage free

Widen your search area, to look for cheaper property
You will also need money for
Solicitor fees, survey, mortgage arrangement fee, moving cost, emergency costs etc
In some parts of UK you can buy a property for 60k !

Am I missing something? £90k borrowing and a £60k deposit gives you £150k

Maybe keeping £10k of you deposit for fees repairs and savings, still gives you £140k to spend... with that budget I'd be looking at anything up to about £160k asking price.

What you actually need to do is a soft calculation of how much a lender would be prepared to give you.
Read this.
www.moneysavingexpert.com/mortgages/mortgage-guide/

So how much rent do you pay, and what would your potential mortgage payments be? How do they compare?

£2600 is a very high service charge so I wouldn't touch that flat with a barge pole.

Find out how much you can borrow - 90k seems quite a stretch on 20k a year but like jemihap says - 140k could be doable.

You have to have short term pain for long term gain

I guess that's it, in a nutshell!

You will also need money for Solicitor fees, survey, mortgage arrangement fee, moving cost, emergency costs etc

Ah, didn't think about that...

So how much rent do you pay, and what would your potential mortgage payments be? How do they compare?

I've never paid rent. That's partly why I'm so naive about it all! I've always either lived with my parents or with families I've nannied for.

That's another thing. Working as a nanny is less of a reliable income than say, having an office job, as the kids grow up and go to school and you're back to the drawing board again! Would that affect how likely I am to get a mortgage too?

A friend has been a nanny all her life + she’s a single mum and gets to maintenance and is just buying in London. She didn’t struggle getting a mortgage at all. You just need a permanent contract.

How much are properties in your area? Would you be able to start with something for 100-120k? You don’t want to overstretch yourself as it could be stressful when you’re in between jobs.

I agree with comment about the service charge. How much is the ground rent?

If you are going to buy a flat
Ensure you receive a copy of all the existing costs like;
Freehold fees
Service charges for communal areas
Freehold insurance
How much the fees are likely to increase per year
Length of leasehold
Rules about owning pets, allocated parking
Access to shared outside space

I'm going to add
If you don't live there & rent it to a tenant
The freeholder may charge you a landlord sublet fee
You will need your own property & contents insurance
There may be extra charges for cutting grass, trees, cleaning windows, fire safety checks, gym or swimming pool maintenance

Ensure you visit the property in person before buying
Ensure you get a survey before buying

I did it on slightly higher salary than you (22k)

I didnt push to the highest that I could afford and i compromised. Bought in a cheaper area.

What I did not do was look at houses 10-20k over my budget and negotiate.

they can only say no - be cheeky! first time buyers are in a good position, i realis this now!

That's an astonishingly high service charge. I'd run for the hills

*What I did not do was look at houses 10-20k over my budget and negotiate.

they can only say no - be cheeky!*

I'm scared to do that in case I fall in love with somewhere I can't afford and they turn me down!

The gardens are pretty big on this place, maybe that's why the service charge is so high. I know nothing about what to expect/look for.

There are cheaper properties a good distance away, but they seem to be tatty 'fixer-uppers' in far shabbier urban areas. I really liked the look of the one I found because while the interior of the flat is pretty basic, small with a cheap kitchen etc, the building is old and characterful and the garden and views are lovely. It's in a rural spot which is far more 'me'.

It would stress me out if I was struggling to afford it each month though.

Thanks so much for all your input everyone! I need to read the thread properly and reply individually. I've got a coursework deadline to meet though so I've got to stop procrastinating on Mumsnet! I'll be back though!

That service charge is ridiculous! Also, it could go up at any time. Surely extra babysitting money could be put to extra use.

When I lived in a flat the charge was £50pcm and for that they did feck all but at least it was cheap!

You also need to add up electric, gas water insurance etc etc.

Mortgages are as much about affordability as multiples now and On 20k you
May struggle because you would find a larger proportion of income is going on bills. They make also. It take babysitting money into account as income because it is adhoc. Unless you can show same amount coming in month after month which I guess as it will be cash you cannot? Or do you declare it?

How old are you? If young I would live in nanny for a bit longer and save up.

I do declare it, but it's all ad hoc. Although I have families I babysit for often I don't have a weekly arrangement, or whatever, with any of them. On a good year I earn about £3000 but there are no guarantees.

I'm 30 so no spring chicken any more.