First Time Buyer - NewBuy Scheme & Shared Ownership

[kiethton]

Just to check things out, looking at possibly doing the new Newbuy 95% scheme on a 50% share of a 1 bed flat in a good area near the station (inside the M25). I would be purchasing it on my own in my own name.

Just a quick check to confirm that this is do-able (95% on a share) before I triple check finances (I don't want to financially over-extend myself) before I book a viewing.

Rough Figures (rounded):

OMV (whole) = £200k
50% Share = £100k

Deposit = £5k
Newbuy Mortgage = £95k

Mortgage Payments = £450pm
Rent = £245pm
Service = £120pm

Total Monthly Costs = £815pm

Net Income = £1,680pm (although currently looking to move on and am close to agreeing a £40k pa. salary)

Is a disposable income of £600pm - (£150pw) realistic?

(I have no outstanding debts barring Student Loan, car paid in full etc. Should my girlfriend stay with me she would likely contribute a few £100 when possible etc.)

[mx stu]

kiethton said:

Total Monthly Costs = £815pm

Net Income = £1,680pm (although currently looking to move on and am close to agreeing a £40k pa. salary)

Is a disposable income of £600pm - (£150pw) realistic?

What's have you included in the £265 difference? (£1,680-£815-£600) I assume this is just gas, electric, water, council tax, TV licence, home insurance?

Don't forget not every month has 4 weeks, some have 5 (particularly important if you buy your food shopping on the same day each week).

When I bought my first house I had about £100 per week left which I just about managed to scrape by on. It really depends on what you spend money on currently. I've never really been one for going out every weekend or buying lots of clothes so I didn't feel I was missing out.

Edited by mx stu on Monday 30th September 15:43

Edited by mx stu on Monday 30th September 15:44

[kiethton]

mx stu said:

kiethton said:

Total Monthly Costs = £815pm

Net Income = £1,680pm (although currently looking to move on and am close to agreeing a £40k pa. salary)

Is a disposable income of £600pm - (£150pw) realistic?

What's have you included in the £265 difference? (£1,680-£815-£600) I assume this is just gas, electric, water, council tax, TV licence, home insurance?

Don't forget not every month has 4 weeks, some have 5 (particularly important if you buy your food shopping on the same day each week.

When I bought my first house I had about £100 per month left which I just about managed to scrape by on. It really depends on what you spend money on currently. I've never really been one for going out every weekend or buying lots of clothes so it didn't feel I was missing out.

Exactly that but overestimated IMO.

There is another shared ownership flat but further out and smaller which would be about £120pm less but for only a 40% share which would require a bus to the station if i didn't cycle etc. so this one seems better, just trying to balance it out.

Alternative is another 12 months of hard saving.

I'm 24 (just) but don't go out clubbing, preferring pubs, however as I don't have a space of my own a fair amount of my cash is spent eating out with my GF/relaxing in the pub etc. and would be replaced by cooked meals but other existing living costs are reasonable and below:

Current:

Rent to parents - £300
Food - £50pw
Train - £30pw (the flat is zone 4 vs. zone 6 so would save me cash over now)
Phone - £15pm SIM only unlimited everything iPhone 4
Car - £150pm petrol (E39 540i) but majority on going to/from girlfriends house/wasting time to get out

I currently save £500-£800pm depending on car bills/holidays and shop at Primark (£100 total in 2 hits) so live pretty frugally. Car owes me nothing, has 11 months tax and 9 months insurance left so no big bills there either. (MOT next month though, but can always come off the road - won't fail though!)

Edited by kiethton on Monday 30th September 16:11

Edited by kiethton on Monday 30th September 16:13

[BoRED S2upid]

I would think 600 a month is plenty to live on you will have your own place so won't be going out as much budget £100 per week and have a small buffer and if the gf chips in you will be able to manage even in London.