# First time buyer - budgeting



## m0bov (May 2, 2007)

Hi guys, as soon as I've paid off my new car (0%!) finance I will want to look for a flat or studio flat. I'm single, £20k deposit and earn over £25k. I'm looking in the north surrey area around Sutton area.

I need to work out whether I should rent or buy, if I buy it will be a tiny bed sit and if I rent could get somewhere with good sized bedroom and parking.

What sort of bills am I looking at per month? I don't have mobile phone contract and don't want sky or anything, just my broadband. Can anyone help me to budget? Then I can work out what I can afford per month mortage or rent.

Thanks.


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## s2kpaul (Jul 27, 2006)

im just going through the whole buying process atm, basically 145k place will cost you aroun £775 per month. The biggest cost for us are all the 1st time items needed, carpet, sofa , curtain , etc etc


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## m0bov (May 2, 2007)

How much in bills on top of that?


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## Razzzle (Jul 3, 2010)

Best advise would be to go and see a financial adviser,

They will give you what you can realistically afford to be paying out for a flat etc.

Daz.


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## Ducky (Mar 19, 2007)

My advice is don't rent, all you're doing is feeding someone else's property ladder rather than your own!


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## deanchilds (Dec 11, 2007)

That is the reason why I havent rented yet! I pay my parents rent but thats different and a lot cheaper! 

I know not everyone can get a mortgage but with £20k deposit and a combined income of £51k you can get a mortgage of £180k which is a good start. 

Im hoping to try and get £20-£30k saved up ready to get mine sorted. Once im ot of debt every penny will go towards the deposit. 

Everyone tells you it aint easy and I hear it all the time but ive managed to clear my debt from £22.5k in Jan 09 to £7k now. So no reason to say with a little harder work why cant I save up £30k in the next 18months!


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## Rob_Quads (Jul 17, 2006)

I would say allow around 350pm for bills and stuff and you will be safe. That should be enough to cover everything from council tax, water, gas, elecy, phone, internet.


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## m4rkie23 (May 19, 2009)

350 is the figure I've used for monthly bills.
And then approx the same again for food/drink.


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## alan hanson (May 21, 2008)

i would also allow for more, for when things go wrong and need replacing bound to happen.

350 for food and drink for 1 person a month? we only spend 150-160 per month for two of us, do you have an elephant as a pet?


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## Rob_Quads (Jul 17, 2006)

You spend £40 per week on food. Thats not a lot of money for 2 people I would say your way below the norm which is probably closer to the 80/100 mark


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## m4rkie23 (May 19, 2009)

There's 2 of us Alan. I was budgeting around £70-80 a week on food and drink.


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## DiscoDriver (Oct 27, 2009)

Sounds reasonable to me - we shell out approx £1k a month on food and other consumables (washing powder etc) for the 6 of us (4 young kids).


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## shane_ctr (Dec 17, 2006)

alan hanson said:


> i would also allow for more, for when things go wrong and need replacing bound to happen.
> 
> 350 for food and drink for 1 person a month? we only spend 150-160 per month for two of us, do you have an elephant as a pet?


Same here there is 2 of us and we spend £150 tops a month on food and drink


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## corsaauto (Jun 2, 2009)

Dont stretch yourself too much on the mortgage, most people do, to begin with but dont go too much!! When I first got mine it was only 2-21/2 times your combined salary. 
TC


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## PDK (Apr 14, 2008)

Most lenders use a ratio of 45% of your take home pay as living expenses.

So what you need to bear in mind is any further borrowing you might have planned.

With this in mind, say for example your net salary was £2k per month.

£900 is automatically taken off as living expences, food/drink/entertainment etc.

*Please do not for get about budgeting for insurances; life, CIC, income protection, building & contents etc.*


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## p1tse (Feb 4, 2007)

good luck, it just all mounts up!


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