KDB99
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Hi all,

Since the beginning of the dreaded lockdowns, I have managed to save approx. £8,000 towards a mortgage. I am struggling with my options at the moment as I have seen a nice flat locally for £90,000 which is in a larger block of flats within my area.

My parents are slightly against flats as they don't 'appreciate in value' according to them however I can see another flat one level higher for £105,000.

As I am 21, I really am looking to move out and start my own life now. I do not have a girlfriend or friend I would be going into this with and it would solely rely on me. I am earning just over £21k a year in a stable job working in the NHS as a site supervisor.

The question is, do I hold off and wait to save more money or do you think my wages are stable enough to continue with this? My car was finance but almost paid off now, I am saving 650 a month so could cover a £400 mortgage. Should I wait for a potential partner in crime to go into this with for further stability?

Advice is greatly appreciated!
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RegisteredBMS
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So obviously the usual disclaimer, this is just advice and ultimately it's your decision. I have no background in finance just my own personal experience.

I have a few questions. What area of the country are you buying in and how long has it taken you to save £8000.

Have you used the Lifetime ISA's? If you were to open up a Lifetime ISA with Skipton, you would be able to but in £4000 of your savings before April, and £4000 immediately after April. You would then gain a bonus of £2000 in total. Your £8000 instantly becomes £10, 000.
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KDB99
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(Original post by RegisteredBMS)
So obviously the usual disclaimer, this is just advice and ultimately it's your decision. I have no background in finance just my own personal experience.

I have a few questions. What area of the country are you buying in and how long has it taken you to save £8000.

Have you used the Lifetime ISA's? If you were to open up a Lifetime ISA with Skipton, you would be able to but in £4000 of your savings before April, and £4000 immediately after April. You would then gain a bonus of £2000 in total. Your £8000 instantly becomes £10, 000.
Wow that's really helpful, is this instant withdrawal or does it come with it's con's? It was since February/March as I wasn't going out on my all-out weekends drinking, which has in turn changed my perception and would prefer to settle down and focus on my career.
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RegisteredBMS
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(Original post by KDB99)
Wow that's really helpful, is this instant withdrawal or does it come with it's con's? It was since February/March as I wasn't going out on my all-out weekends drinking, which has in turn changed my perception and would prefer to settle down and focus on my career.
There are negatives to it. You have to use it for either a house deposit or retirement. Once it's in, it's in. You can't withdraw it without penalty unless you're using it as intended. When you buy a house your conveyancer will handle the forms for getting it out without penalty, they'll charge a small fee for that as always but we're talking £30-£50, they'll add it to their hefty bill! You also can't use it without penalty for 12 months after you've opened the account, so if you want to buy within 12 months it's not an option, equally, you could wait 12 months, add in this year to get your £2k, and then start looking for a house to buy at the earliest Jan 2022, if you waited to April 2022, you could even stick anything extra you've saved in and get a 25% bonus on that.

The LISA basically works that you can put up to £4k in per tax year, and you get a 25% bonus on that. Here's some information.
https://www.skipton.co.uk/savings/is...h-lifetime-isa
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Emma:-)
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(Original post by KDB99)
Hi all,

Since the beginning of the dreaded lockdowns, I have managed to save approx. £8,000 towards a mortgage. I am struggling with my options at the moment as I have seen a nice flat locally for £90,000 which is in a larger block of flats within my area.

My parents are slightly against flats as they don't 'appreciate in value' according to them however I can see another flat one level higher for £105,000.

As I am 21, I really am looking to move out and start my own life now. I do not have a girlfriend or friend I would be going into this with and it would solely rely on me. I am earning just over £21k a year in a stable job working in the NHS as a site supervisor.

The question is, do I hold off and wait to save more money or do you think my wages are stable enough to continue with this? My car was finance but almost paid off now, I am saving 650 a month so could cover a £400 mortgage. Should I wait for a potential partner in crime to go into this with for further stability?

Advice is greatly appreciated!
You don't have to wait to get a partner before you get a house/flat.
I prefer houses to flats, but that's just my opinion. You get what you prefer.
But I would wait a bit longer before buying. Wait until the covid situation has calmed down a bit. And in the mean time you will have saved up a bit more as well.
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Final Fantasy
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Hi, I got my first mortgage in early 20s as well. I was on £23K at the time, and the house similar value around £90K. Took me about a year and my parents helped to apply for the mortgage, but it's under my name. The house has since gone up to around £110K, I live outside of London though it's just a normal terrace house. I don't think flats are a good idea personally but if that's what you can afford then go for it. Doing this at an early stage in my life helped me a lot. I didn't have a partner at the time either, but it definitely helped when I ended up in a relationship.
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Jack22031994
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(Original post by KDB99)
Hi all,

Since the beginning of the dreaded lockdowns, I have managed to save approx. £8,000 towards a mortgage. I am struggling with my options at the moment as I have seen a nice flat locally for £90,000 which is in a larger block of flats within my area.

My parents are slightly against flats as they don't 'appreciate in value' according to them however I can see another flat one level higher for £105,000.

As I am 21, I really am looking to move out and start my own life now. I do not have a girlfriend or friend I would be going into this with and it would solely rely on me. I am earning just over £21k a year in a stable job working in the NHS as a site supervisor.

The question is, do I hold off and wait to save more money or do you think my wages are stable enough to continue with this? My car was finance but almost paid off now, I am saving 650 a month so could cover a £400 mortgage. Should I wait for a potential partner in crime to go into this with for further stability?

Advice is greatly appreciated!
Id keep saving if I were you. Ive found a flat I like the look of for £105,000 in the centre of a town but its not in a block - it's in a small courtyard of a few all on ground level. Dont wait for someone because you have no idea when that'll happen and if you do by on your own, you have added security that it's 100% yours - and if you do meet someone you can always sell it and buy somewhere else or rent it out.

PLus, dw worry about it maybe not being an ideal place yet as the vast majority of people dont stay in the first house they bought for ever
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Final Fantasy
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(Original post by Jack22031994)
Id keep saving if I were you. Ive found a flat I like the look of for £105,000 in the centre of a town but its not in a block - it's in a small courtyard of a few all on ground level. Dont wait for someone because you have no idea when that'll happen and if you do by on your own, you have added security that it's 100% yours - and if you do meet someone you can always sell it and buy somewhere else or rent it out.

PLus, dw worry about it maybe not being an ideal place yet as the vast majority of people dont stay in the first house they bought for ever
True - I only lived at mine for a couple of years then moved back in with my parents. The house is currently on rent. I'm not sure if this is normal practice in London or not (from South Wales, no idea how things are in London area)? Maybe the OP can put it on rent and have it pay most of the mortgage each month.
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ch0c0h01ic
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(Original post by KDB99)
My parents are slightly against flats as they don't 'appreciate in value' according to them however I can see another flat one level higher for £105,000.
You're no more likely to make money on a house than a flat - it just depends what you're buying, where and the price you pay.

Generally property is not as good an investment as most people think, especially when you factor in the costs of buying, selling and maintenance. Older generations tend to be particularly biased.

When I look at my current property, sure it's appreciated significantly in value. However when I adjust for time, buying/selling costs, mortgage interest and maintenance I'm looking at a 1-3% annual return on my investment (pretty poor when you consider than global equities were returning an average of 7-10%!).

Things to be particularly mindful of when buying a flat is:
1) External cladding removal - avoid any blocks with external cladding even if it supposedly passes current fire regs
2) Leasehold issues (common with newbuild properties too, not just flats)
3) Service charge laddering (again, can have similar issues with newbuild properties with respect to ground rent and estate charges for maintenance of roads and public areas)

As I am 21, I really am looking to move out and start my own life now.
I personally wouldn't rush to move out.

There's nothing to stop you from "starting your own life now". If anything you're going to be less able to afford to carve out a life for yourself when you've got a mortgage and bills!

You're in a very privileged position to maximise your savings for a future house/flat deposit, and have some good experiences without the risk or cost of having your own mortgage.

My car was finance but almost paid off now, I am saving 650 a month so could cover a £400 mortgage.
Finance deals are terrible - pay it off early or hand the car back if you have negative equity (and buy something cheaper with cash). You will save a lot more money in the long run.
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ReadingMum
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I guess you have to consider whether your job has career progression leading to jumps in pay - otherwise houses may well increase in price at a faster rate than your pay grows.
My first property was a modern flat in a block of 6 - it was my only option due to prices in the area where I worked (Oxford). At the time I earned £14k and it was £44k so a mortgage of £41800 plus 5% deposit - 3 times your salary was the max back then as the mortgage rate was 14% :eek:
I got my independence and a foot on the housing ladder. After some years I moved in with my boyfriend and rented it out - then sold it when we bought a house together and needed the combined income purchasing power.
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Jack22031994
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(Original post by Final Fantasy)
True - I only lived at mine for a couple of years then moved back in with my parents. The house is currently on rent. I'm not sure if this is normal practice in London or not (from South Wales, no idea how things are in London area)? Maybe the OP can put it on rent and have it pay most of the mortgage each month.
im not from London either (South West England). Yeah its a good way to get a rental property going. For example a colleague's cousin did that. Bought a place, them moved back in with their parents and rented it out.She now has 7 houses apparently and is pretty much a millionaire (in assets at least). From a very normal background too.
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