How realistic is it to live on £1.2k after mortgage and bills

[YourGreenDreamer]

Hi all,

You may remember me (27F) from the thread I made about securing a 3bed semi house (£245k, 5yr fixed at 4.79%) as a single buyer.

Majority... if not, all advised that I was in a great position and should go for the house but I'm not sure if there was a focus on the fact that I'd be living on £1.2k before I get a lodger... if I find a lodger. So my concern is that I'm biting off more than I can chew.

My take home after NI, tax, student loan and pension is £2,565. My monthly repayments will be £970pm (5years fixed rate). I am budgeting £370pm for my bills:
£159 council tax (excluding single persons discount - in the event I have a lodger)
£75 gas(?) - no idea if this is realistic in a 3bed semi detached with 1-2ppl at home. Same concern for electric and water
£75 electric (?)
£21 water (?) - I have no idea how to calculate how much water would be per month? Could someone provide some information please. How would I find out?
£27 broadband
£16 sim only deal

I have no dependents but would love to have children in the near future. That's with or without a partner. How would I manage on just £1.2k disposable? So very scary...

I really do love the house and think it'd be a great investment but I'm concerned that I can't afford it. People say your mortgage shouldn't be anymore than 35% of your take home. Well for me with bills included it'll be nearing 50% of my take home.

Again, any advice is appreciated.

Thank you.

£1.2k disposable after bills and mortgage is a lot!

Yes 1.2 k disposable income seems more than enough to me. I guess it depends on your lifestyle. How much do you spend on average a month?

£1.2k disposable income after all your bills are paid??

Err, yes - that’s more than doable!!

Assuming by bills you mean food, petrol etc as well then that is more than enough.

Well you have far more bills than that for a start! I’m assuming you eat, travel and will absolutely need insurance for the house and yourself. Do you watch any TV at all? No subscriptions? No media?

We have virtually zero pounds disposable and are alive and well. You’ll be grand.

I'm very very jealous. My total income each month is about 1600!!!
After rent, bills, car and food I probably have 50 to 100 disposable income except it isn't really as there's always something like a car repair or a child birthday or something needs doing to the house.
I'd cut off a toe for 1.2k disposable income per month!!!!!!

Come on now OP- you're having us on, aren't you? You don't seriously think that's not enough to live on?

Also re your bills questions my gas/lecky combined is 130 a month and water 30 a month

Are you joking? That’s £300 a week. Some people don’t even have £300 a month. That sounds more than comfortable!

Folk don't even earn that a month ffs. If u can't survive on that there's something very wrong.

My take home pay is pretty much identical to yours. I'm a single parent, two teenagers. I currently have a mortgage payment of around £700 per month but am looking to buy a new property and my payments will go up to around £1000 per month.

I don't think you've worked out your annula budget in enough detail - you need to account for absolutely everything^.

It sounds fairly tight to me TBH.

They advise 30% on a mortgage. So why don’t you calculate that rather than aiming for 30% for mortgage and bills?
And maybe work out how much you are spending now after bills?
ultimately if you feel uncomfortable get something cheaper 🤷‍♀️

Do you live in a bedsit? I know mine is on the right side at £430 but that's very low!

Many don't earn what your are left over with

Rent /mortgage used to be advised 33% of wages but obv everything went up

You don't include bills in that third of income for housing so yours isn't 50%

Plus extra stuff a month roughly

Tv license £14
Building and contents £15/20
Any sky /prime /now etx

It's tight but doable. I'd also budget for buildings, contents and life insurance

Maybe think about savings too - the boiler breaks, the car, etc

Take into account that a lodger may not be as frugal as you are with energy and water etc so you may need to factor that into the costs

Not a lot as of late as i've been saving like my life depends on it. It is doable but for how long until I start feeling like I'm living pay check to pay check

Ridiculous

No I live in a 3 bedroom semi detached house. 1 adult 2 children. North West.

I should have mentioned insurance will be paid in full so as to keep my monthly expenses down.

Eat and travel is not a bill to me but it'll certainly eat out of my 1.2k.
I don't watch TV, I stream everything so that would be broadband for me.

I wfh, don't drive. I hope that's all the bills I have!

Living paycheck to paycheck does not mean £1.2k disposable income or savings!
It means (for a great deal of people including myself) paying the bills, rent and food and that's about it, nothing else!

That sounds not only doable, but very comfortable.

Not having anyone on at all. My disposable is currently 2.5k and it'll be going down to 1.2k, I think it's natural for that to be a shock....

Are you taking the piss?!

No, not at all...