First Time buyers can we realistically afford a 260k house?

[Zka]

Hi all,

Me and my SO have just had an offer of 260k accepted on a property. We have 3 LOs and currently live in a very bad neighbourhood (very bad crime rate).

We are wanting to move and fell in love with a 3 bed property with a drive and huge garden, in a lovely area (up North). It was up for 265k and 260k is probably overvalued but we love and it will become our forever home.

But... We are both so nervous about it all. My partner works got a decent job earns around £49k/Yr and can get overtime. I have just accepted a job that is £25k/year (Starting in April). So a pre tax income of 74k/year. He has £35k saved up I unfortunately have nothing. So he is going to put a 10% deposit (26k) and cover all the fees.

We worked out our joint income after tax (with DLA for one child and child benefit) is around £5200/month.

The mortgage costs is £1200/month (on a 40yr fixed term) and all our rough outgoings will be around £3000k incl. Mortgage cost. So on paper it looks like we will have an excess of £2k but I've probably not calculated that properly.

So my 2 main questions are:

1. Could we afford the initial costs (deposit, legal fees etc.)

2. Could we afford the monthly costs (especially if the interest rates change)?

We would also need some money for furnishings initially (probably 3 beds, sofa). And I know my SO wouldn't be left with much money after all of that. So it is very risky!

Sorry for the Large post, I would just like someone with experience to say you'll be okay or don't do it you'll put yourself through hell!

Thanks for any advice,

Tara

Sounds perfect.

Sounds to me like you can and it would be a good move for you but the first place you should be heading is to a mortgage broker who will talk it all through with you (and hopefully put a lot of your worries to rest).

Don't forget to look at protecting your mortgage too, should the worst happen you do not want to be struggling to make mortgage payments.

How much do you currently pay in rent?

My DS is paying £1350 a month in rent (Yorkshire) and is looking to buy for around £270K. His mortgage would be roughly the same as his rent (slightly higher deposit over 30 years). So buying will not increase regular outgoings but of course there is maintenance.

When I was a FTB a few years ago the mortgage lender wanted 3 months of payslips as proof of income so they may not take your new job into account if it doesn't start until April.

Yes you can afford it and there are lenders out there that take a work contract for a new job.