Figuring out if I could afford to buy

Hello

 

Apologies for the delay in doing this post - life has just been manic!
 

Right figuring out if I can afford to live on my own and buy a property was a big thing for me. Thinking back it probably took me two years from wanting to move out until me actually completing and coming up with a moving out day (which I haven’t fully done yet). So about two years ago I went to a mortgage adviser to ask about what I would need to move out (e.g. I didn’t think/ know about the cost of solicitors (conveyancing), validation and survey costs or what type / cost of mortgage I would get. So after seeing the adviser she gave me a breakdown of costs stating that I would need at least a 10% deposit and extra money including at least £1000 for conveyancing fees. I left feeling a bit overwhelmed but at that point I didn’t have a big enough deposit or job security (at that point I had just started a one year contract at my current employers). I spent some time saving to try and build up my deposit.

Once my contract had been renewed at my employer (so the start of my second year with them) I went back to the mortgage advisor and asked if I could get a mortgage promise. She gave me this but stated that I would only have a three month period to buy a property (this was because my work contract was only extended for another year and I needed at least 6 months on my work contract). So with my mortgage promise in hand I started browsing at www.findaproperty.com and various other websites/ estate agents/ newspapers. Finding a property isn’t always an easy thing. I wanted to be near my parent’s home (in case I need anything but far enough away that they can’t walk round.) With only three months I didn’t find a property (I did go and see a new build which I loved but I needed a 15% deposit which I didn’t have L ).

So eventually at the start of my third year at my current employer I went back to the mortgage adviser and got another mortgage promise. At this point I already had some viewing booked on a few properties and my adviser was able to give me a clear understanding of how much my monthly payment would be. By being able to use this figure I was able to put together a spreadsheet which helped me to monitor my outgoings and incomings and figure out if I can afford to live on my own! (which I believe I can!) I would recommend everyone to do this to make sure you plan and budget accordingly. These were some of the things I had to factor in (so you may have to):

·         Mortgage

·         Council Tax

·         Electric Gas

·         Water

·         Petrol

·         Car Saving

·         Phone bill

·         Dentist costs

·         Car Savings

·         Magazine costs

·         Christmas savings

·         Home insurance

·         Service change (if buying a flat you have to factor this in)

·         Food

·         TV Licence

 

So once I had determined that I could live on my own I had to plan if I could afford to buy a property this is what I had to factor in:

·         Deposit

·         Mortage for two months

·         Conveyancing fees

·         Moving costs

·         Validation and survey costs

·         Flooring costs

 

So that’s how I managed to plan and budget to be able to move out.  If you have any questions or comments please feel free to leave them below