21 and want to move out!!!?

Question

I am 21 and want to get a place of my own. I have no money and I am on a temporary job, earning £5.60 per hour. I do not work full time some weeks, but I do most. Starting at the beginning, can someone please tell me exactly what I need to do to buy my own place. As much detail as possible please, and no jokes, as this is a serious question. Thank you.

Answer 1

the best thing is to have a deposit to put down, this is normally between five and ten percent. But the bigger your down payment the better chance you have of getting a mortgage.

Talk to several backs as they will tell you how much they would be willing to lend you. They will also be able to talk you though the different types of mortgages as this can be the tricky bit.

Always remember though the banks are out the sell you their products so also look at the rate of repayment the APR and compare that with others.

Also check out independent advice from a financial adviser, they should be free at the point at which you see them, their get commission from who ever you take your policy out with.

If you decide to rent you need to pay the estate agent and pay contract fees and for a security check as well as the first months rent in advance. This option will cost you around £1,000.

Good luck.

if you need more help on money matters check out www.moneysavingexpert.com, here they have loads of info about house prices, buying, renting and mortgages etc.

Answer 2

I'm afraid the easiest way to get your own house (if you don't have the total price available!) is to get a mortgage with a bank, building society or lender. To buy a house with a mortgage, you will need to pay a deposit up front, and also meet requirements which mean you're a trustworthy person to lend money to. These requirements usually mean holding down a secure, full-time job.
So your first step is to look for a permanent position, and start saving money for the deposit (look at a minimum of £10 000, I think.)
Other ways to make the process easier are buying community-share properties, where you only own a portion of the property, or buying with someone else. If you work as a key worker (teaching and health workers) you might also be entitled to a cheaper property.
Try internet research under 'first time buyers' for tips, and look at morgate lenders websites, which have calculators to work out how much money you might be entitled to.
You're in the best place for all this, as living with your parents (despite the hassle!) is the cheapest life around, saving not just rent but bills, food, taxes, taxis(!) and all sorts of other stuff. So don't be tempted to break out alone and rent - it's so expensive and makes owning your own place an even more distant dream!
I graduated from university last year, have some savings and quite a good job, but will probably take at least 4 years to save enough for a mortage on the tiniest flat in England!

Answer 3

Most banks and building societies will lend 300% - 400% of your annual gross pay over a 25 year repayment period, giving you a budget of around £35K to £45k plus whatever savings you have for the deposit and moving expenses etc. This is not totally impossible in some parts of the UK, but is not going to be easy unless you fancy an ex-council flat in Salford or somewhere similar.

If you want to live in the south of England you're going to find it difficult to rent in many locations. As a former property management agent in North London I would expect prospective tenants to earn a minimum of three times their rent. This would give you a maximum rental budget of £75 per week which will not get you a bedsit in many parts of London.

Joint ownership will not help you at the moment because you would have problems covering the rent on the portion of the property you do not own without even thinking about paying the mortgage on the bit you would be buying.

My advice would be to stay at home for as long as possible and save. In order to save decent money you are going to have to find a full time permanent job which hopefully pays more than you are earning at present. If you need to study in the evenings to get a better paid job then go for it. If you get offered overtime then take it, if not, look for an additional part time job.

From your position at the moment this may not seem a pleasant prospect, but it is possible. When I first got a mortgage I was often working seven days plus one or two evenings a week to support a wife and children as well as paying the mortgage and other bills. The mortgage eventually got paid off over 10 years early.

Answer 4

Start saving now, I assume that you are living cheaply with family, for the time being at least.....stay there, live as cheap as you can and save ALL of your disposable income.

Improve your job, go full time, aim to work 147 hours a week and if you are looking to buy in UK then your salary target is a minimum of £50,000 a year. By the time you have this salary you should also have enough for a good deposit and enough to pay all the fees and expenses. Estate agents will keep you posted about potential properties, you just need a good deposit and a mortgage with a greedy bank and you are away. Then you get to pay a couple of grand a month in mortgage payments instead of rent and believe you own property until the bank comes and takes it back.

You could consider buying with friends to speed things up (but get proper agreements drawn up), or if you are really desperate to move out you could rent a bedsit in an attic somewhere; but you are probably better off where you are, at least for now.

What can you do.....Save and wait. Save and wait.

Answer 5

This is a hard one for me to answer because I am not sure of your sex, and I am a US resident, not a UK person.

However, your first problem has to do with lack of funds.
You will need 5% - 10% - 15% of the purchase price as a down payment on a mortgage.

A mortgage presumes you can repay the house purchase cost based upon a stable job and known
income with a track record of previous payments over time... So with your temporary employment status you
are in a bind there and I don't think anythging is going to happen soon.

Your best bet is to find a suitable room mate and move in with them - pay a share of their expenses. You will need to put the agreement in writing and have it witnessed. You keep a copy. They keep a copy. Some mention should be made about how to end the agreement (move out).

One other easy way to accomplish this desire for departure is to join the military and move in with them.
Short of that, there may be jobs you can hire into that require your 100% of the time presence such as house sitting, or Child Care which will require you to live in the child's home. Granted these are not Cool jobs, but they will get you out of the house you seem to want to leave.

Plan on a rough few years ahead. It is not easy to go out on your own. All kinds of services now have to be paid for up front. You will be amazed at what you have given up for your freedom.

Good Luck,
Zahbudar

Answer 6

You will probably need someone older to act as a Guarantor (like your parents). This means someone who basically signs to say they will pick up the payments if you can't make them.

Past that you will need a deposit and probably a contract or letter to say your in full time employment.

The only other ways are 1. if you have graduated from university as many banks will offer mortgages without deposits (100%) but the amount you get may still depend on how much you earn.

2. work for the public sector and you may be eligible for a keyworker scheme which offers you the deposit you need

Answer 7

It depends where you live but I don't think you are really in a position to buy a place - I assume you don't have a deposit saved (between 10 and 40k) or a partner to share the mortgage with.

To borrow money for a mortgage you need a regular salary.

Why don't you look into renting a room in a shared house? Or with friends?

On your income you could probably afford up to £250 per month excluding council tax.

Answer 8

You need to be in a full time job with much higher wages than you are on now.The bank will lend you 3 times more than your annual salary so lets say it is 10 grand a year then the bank would lend you 30 grand. Most first time buys are 60 grand so i think you will be disapointed. You could rent a flat but i dont think you are in a position to buy just yet, Good Luck. My son is in the same boat as you.

Answer 9

First off you are going to need a full time permanent job. Then if I were you I would look for someone who is renting and needs a roommate before I would jump into buying my own place. You are going to have to make enough money to pay your portion of the rent, electric, gas and food. Plus you are going to have to figure out transportation to and from work. Moving out on your own isn't cheap or easy.

Answer 10

I don't know about the UK real estate market but I doubt it's vastly different from the US. In the US I know of a duplex property for sale for $18,000!!!!! To me that's dirt cheap. Of course it's in a rougher section of town but for that price that's what you get. You get what you pay for. There are cheap properties out there but realize you will have to sacrifice. If you do find a cheap place invest in an alarm system and get to know your neighbors. They can tip you off if someone tries something funny with your property.

Keep your chin up. I know how it is. Another option is to SAVE ALL or MOST of your money. If you don't have to pay rent at home even if you're only making $19,000 a year in a few years you can pay cash for an older place or make a down payment for a more expensive place.