FTB in London — £67k salary, 25% deposit, lodger income. Sensible or stretched?
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Hi all,
I’m a 32f FTB in London buying a 3 bed maisonette (ex council) for around £396,500 with a 25% deposit (bank of mom and dad).
My salary is £67k, around £3,900 net/month. Mortgage rate is around 4.65%, currently fixed for 2 years, though I may ask whether a 3-year fix is possible. Monthly mortgage payment should be roughly £1,450.
After completion, I expect to have around:
- £10k emergency fund
- £7k Stocks & Shares ISA
- £10k for basic furnishing / initial refresh
- £200/month home sinking fund built into monthly budget
I plan to take in a lodger ( friend of mine) at around £1,100/month, which would make the budget much more comfortable. This would allow me to save £500 pounds per month to rebuild my savings pot.
There may also be scope to rent another room/space temporarily for a few months per year, but I’d treat that as a bonus rather than guaranteed income.
I’m also studying for my CIPD (HR certification) and aiming to move roles in the next 12–18 months, ideally increasing salary toward £75k–£80k.
My questions:
Does this sound sensible, or am I stretching too much?
Would you go for a 2-year or 3-year fix in this position?
Is £10k emergency fund enough after completion?
Is relying on lodger income reasonable in London?
Any key leasehold/FTB risks I should be thinking about?
Would appreciate honest views, especially from London buyers or people who have used lodger income to make it work initially.
** I am currently waiting for sellers solicitors to send contract pack, but my mortgage application has been accepted.