We’re sharing stories of how other people have used our Homefinder app to find their dream home.
We know how difficult it can be to find somewhere affordable that you actually want to live. That’s why we built Homefinder. It will also take you to Zoopla and show you properties you can afford in the area you want to live – super easy!
In this week’s episode of Homebuyer Diaries, we help Will answer:
- Where can he afford to buy a flat in South London?
- How soon could he buy?
- How will the mortgage compare to what he currently pays in rent?
Savings: £2,000 saved so far and saving £500 a month
Renting: £950 /month for a room in a 2 bed flat in Brixton (SW2)
Watch the video:
Q: Where can I afford to buy a flat in South London?
- With a 10% deposit they can afford to spend around £240k.
- Some affordable 1 bed flats within current postcode SW2, though mainly shared ownership.
- Lots of 1 beds available next door in Dulwich (SE21)
- Plenty of good choice in Streatham (SW16), Upper Norwood (SE19) or West Norwood (SE27)
Q: When can I buy?
In about two and a half years time if they save £750/month using a Lifetime ISA (LISA) to save for the rest of their deposit.
Q: What will my mortgage cost compared to what we currently pay for rent?
Similar. Will’s currently paying £900 per month in rent, based on current rates their mortgage repayments could be around £1,050 per month…so £150 per month more. Not bad for owning a whole flat rather than renting someone else’s room!
Of course they won’t know for sure until they’re about 6 months from being ready to buy, at which point they can get an ‘application-in-principle’ from a mortgage lender that will state their repayment amount.
They’ll also have the £750 per month left over they’d been using to save for the deposit. We recommend saving that, not least to pay for home maintenance, but they can enjoy it for a little while first!