A 25-year repayment mortgage covering 90 per cent of the cost of a £120,000 property - that is, £108,000 - would cost the couple £600 a month at an interest rate of 4.5 per cent.If they decide to stay where they are, Boulger calculates that, based on their current level of income, Sharon and James could get a mortgage of up to £220,000. If they borrow this amount today, they would only be able to put down a 5 per cent deposit. The monthly cost of a £220,000 25-year repayment mortgage at 4.5 per cent would be £1,223 - just about affordable now, but possibly less so if they have to go down to a single income as a result of starting a family.Finally, Boulger says that Sharon should reconsider key worker schemes, which she has previously rejected. Their savings will be sufficient to cover a decent deposit as well as moving costs. If they can find somewhere for £120,000 or less, there will be no stamp duty to pay either. With house prices flat for the moment, Yearsley thinks there's no harm in waiting.Ray Boulger also thinks the couple should be more positive, though he points out that starting a family will put an extra financial strain on them.
The couple are prepared to consider relocating, and they have friends in Lincolnshire and Leeds; as teachers, their salaries would not be affected by such a move, but house prices in these areas are considerably lower than in Surrey.In these areas of the country, the couple should be able to find a two- or three-bedroom house for about £125,000. At their current rate of saving, Sharon and James will have amassed a total of about £25,000 within two years, enough for a house deposit even in leafy Surrey. James has two ISAs worth £3,000 each with Royal Bank of Scotland Debts: Around £4,000 left to pay on student loan. Monthly expenditure: £1,250 on bills, council tax and general spending; about £1,100 on savings, including pensions; £98 student loan repayment. Holidays, about £1,500 a year.PropertyThanks to the sensible approach they have taken to their finances so far, Sharon and James are in a better position than they perhaps realise, says Ben Yearsley, with a decent chunk of savings, money to spare each month and only a small debt in the form of a cheap student loan.
Property: The couple rent a two-bedroom flat, but would like to buy a house. Pension: Both have been members of the Teachers Pension Scheme for three years. Savings: James has £7,000 in an ING internet savings account and aims to pay in £300 a month. Sharon has £6,000 in the same product and adds between £50 and £200 a month. At Practical Web Design, however, Oliver warns against very cheap or "free" domain registration services."It costs an internet service provider £5 to register a .uk domain for two years. This is the fee charged by Nominet UK [the organisation that controls all UK domain names] but the registering ISP will need to cover its administration costs," he says. In the Alps and Dolomites, where we had been in previous years, you get used to seeing mountains from the bedroom window.
