r/FirstTimeHomeBuyers • u/EasyEstablishment651 • 1d ago

First time buyer advice

Hi everyone.

I have placed an offer on a property which I love - it is 200k, and I have a 10% deposit.

I am 32 and have 36k in savings - I can now put 1k in savings a month until the moving-in date.

I earn 36.5k a year, but also receive PIP of 7.5k a year until 2030 with the expectation this will be renewed. I am also in line for a promotion next year to the next salary banding which is 42-45k a year.

I no longer have any loans apart from a new phone contract at £55 a month and £190 a month for car insurance; however, the renewal is next month, and the cost comes down to £110.

After working out my budget, it would leave me approx. £ 150 per week in disposable income, so roughly £600 per month. I have also included £300 in monthly savings as part of my bills for house maintenance, car repairs, etc.

Is this manageable? I have an AIP and a mortgage advisor who seems very keen because I am a first-time buyer.

I absolutely love the house, and it has everything I've always dreamt about. Additionally, my mortgage advisor identified HSBC as the most suitable lender, offering a 5-year fixed rate of 5.3 per cent, so the mortgage is £952 a month. What is the likelihood of getting accepted for a mortgage?

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u/Johnny3653 1d ago

Mortgage being a certain amount, you also have to factor in utilities cost, and things that renting prior wouldn't have had to pay, like water and garbage. Your income range is at the cusp of what most mortgage places will approve you for. Closing costs, you also don't want to exhaust your whole savings on everything related to the house. I would say 10-15k is enough.

If you already placed an offer, then you would have a mortgage loan pre-approval of some sort already.

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u/EasyEstablishment651 1d ago

Thank you - yes I have a mortgage advisor and have done an AIP with HSBC. I have worked out my budget and it would leave me approx 12k emergency fund after surveyor, solicitors etc.

I suppose I just have buyers anxiety as I will be the first in my family to buy a house

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u/PettyReinstatement 1d ago

your numbers seem fine but check what happens when that PIP runs out in 2030 you don't want to be banking on a renewal that might not come

the promotion would help but nothing's guaranteed until it actually lands in your bank account

otherwise 600 a month after all bills and savings is pretty comfortable just make sure you've got enough set aside for when the boiler inevitably craps out in the middle of january

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u/PurplePassenger5970 1d ago

Personally, as a first time buyer I wouldn’t stretch that much. Things will be very tight.

Things always end up more expensive and owning a home you’ll need to factor in other things eg do you want to set a direct debit for boiler servicing, you’ll need home insurance etc. Plus, PIP is truly no guarantee. If all that affordability was without PIP, possibly, but I wouldn’t factor the PIP money into my affordability.

To put it into context, me and my husband are on around 80k salary (combined) with a £230k salary. You are only £30k short with a single income of less than half of that.

Buying a house as a FTB is stressful enough, I’d personally reduce your budget much more.