Thinking of moving out

[UmbrellaEllaEllaElla]

Hi all

I need some advice, basically as if I'm five years old.

I've never had financial advice from family. And tbh I don't understand it.

After a recent breakup I am at home with family and pay rent. There are a lot of pros to living here. I save a lot, I'm near transport, safe area, my own space.

But my family situation is becoming a bit toxic. I am considering moving out.

I have a perm job and I have 42,000 to my name.

If you were me would you:

• stay put at home and keep saving
• go and rent
• put a deposit down somewhere and move

I'm not sure what the wisest thing to do in my situation is.

Well you have a substantial amount of savings so perhaps it's time that you flew the nest, especially as you say that things are not great at home. Work out a budget and that should give you an indication of what your options are. Perhaps part ownership is the way to go?

In certain parts of the country that is a really decent deposit. I would look to buy a house if your other expenses enable you to afford a mortgage.

pick a bank and complete a decision in principle online to see what you are likely to be able to borrow. Then go house searching.

So first step would be to go to a bank and have a chat?

Would you mind breaking it down like I'm six years old please? I literally feel so embarrassed about my financial illiteracy. My family have never talked about money. I find I get overwhelmed and switch off or embarrassed at how little I know.

I'm also 35 so moving out would be good for me.

A mortgage is just a special name for a loan you take out when buying property. You can ask a mortgage broker to help you find a loan (from a lender) or you can go direct to the lender.

The lender will also need to check you can afford to repay the loan so will want to see proof of earnings, bank statements, credit report etc

Once they are satisfied you can afford it, they pre/approve an amount and then you can work out if you can afford a house in your area and what size etc.

Go house hunting, make an offer and take it from there. Plenty of blogs online can guide you through the house buying process.

No, don't go into a bank, put your salary and deposit into an online calculator to see how much you could borrow.

Like this one

https://www.moneysavingexpert.com/mortgages/how-much-mortgage-borrowing/

Then add on your deposit less about 10k

That should give you a rough idea at what price point you should be looking at

The costs of buying a property are:
Solicitors fees
Stamp duty (depends if you're a first time buyer or not)
Removals fees