To ask how you managed to buy a house?(455 Posts)
We pay close to a grand rent a month. It's of our friend's mortgages are cheaper. As a consequence it's very difficult to save. But save we must to tryand get a deposit. So we have to continue to rent
Stuck in a vicious circle.
How the hell did you manage to buy a house?
Any financial, deposit raising, mortgage getting advice welcome
lived with parents, saved up a deposit, didnt have holidays for a few years, lived as cheaply as we could and saved every penny we could..
certainly worth doing as our mortgage is peanuts now, which has been a great help while my husband was out of work recently
No holidays, wearing clothes until they were threadbare/got holes in, rarely going out for a meal/having a takeaway. It all added up.
We also transferred the amount we wanted to save each month away from out current accounts on the day we were paid, into an account that we were not allowed to touch.
I bought my first house straight out of uni with an ex bf. DH also bought his first house in his early 20's. We both did well out of prices rising and so when we met, were lucky enough to have a decent amount of equity to pool together.
Bought 15 years ago with a 4k deposit. Mortgage is £40 per month now. Sorry that probably doesn't help but I certainly have nowhere near the income to be paying £1000 per month.
we saved up every penny before we got married. was a real struggle but we did it the right way round and didnt have kids until we were settled in our own house and didnt marry until we had a place of our own to live
then a week after we got married, OH got made redundant so was even more of a struggle but we managed somehow
think it would be near impossible to save up for a deposit if we had kids or rented somewhere else
We bought quite young but we both lived with our parents and we used to take out a set amount of cash each week to live on and save all the rest.
We saved shed loads doing that.
12.5k gift from parents
5 year fixed rate mortgage in 2007
Went tits up 6 months later and we were like 'ohhhhh nooooo' (despite me Working at northern rock)
Our fixed rate has now ended and we are now 'ohhh yes!!!' overpay overpay overpay
We got a shared equity house earlier this year. We saved up for four years for the deposit even just for a stake in a hous.e Our mortgage and rent on the shared part is £200 cheaper than our rent was. I know a few people who moved back in with their parents but I would rather rent forever than have to do that!
Oh and we never ever rented as we both saw it as dead money so saved like mad before we moved in (20 and 21 we got our mortgage)
Went overseas to work for 2 years, good tax treatment, saved very hard. Came back and bought first house with boyfriend. We still scrimp quite a bit to pay down as much mortgage as we can.
Luck in terms of market. Made our own luck in terms of careers/salaries.
Bought first flat in early 90s.
Sold at 100% increase in price in late 90s.
Bought small house.
Got big increases in salary in mid 00s.
Now have dream(ish) house.
Bought a flat when I was a teenager, I was working part-time and still at college but did get quite a bit of help with the deposit from my parents. Upgraded to a house with DP in 2001.
I have no idea how any first time buyers have done it since 2002.
DH and I have bought our first house this year and realise that we are very lucky to have been able to do this in the current financial climate in our early 20's. We have both been saving for our entire university careers and my parents kindly helped toward the deposit, bank only required 10% of which we had saved 9% but to help with mortgage repayments my parents topped us up to 25%.
Many of our friends who have lovely holidays/don't watch what they spend/budget everything down to the last penny/use extra layers, blankets and duvets instead of turning the heating on always ask 'how do you do it?' and it is just that, we work very hard at saving money so that we could do this for ourselves and now our DD.
As a result for a 2 bed terraced house we pay about the same as friends of ours who rent a 1 bed flat per month. It takes a lot to cut out the 'excesses' many of which you don't even thing of being excessive, but every saving is a saving, if you save 10p for every single item you buy in a month, whether it is food, drink, clothing, turning a light off, turning heating down etc you have saved a lot by the end of the month
We haven't, but are hoping to. I live in social housing, dp lives with his parents. We are trying to save save save so that when I finish uni we can buy a house together. <hopes>
First house cost 32k in 1997.
Bought 17yrs ago
Struggled a bit to save up the 4k deposit but it was worth pulling our belts in for.
My mortgage is silly money - just under £300 per month for a 3 bed semi in a London borough.
Just very very lucky to have been able to buy in 1995.
Moved from London to North Wales. Obviously house prices weren't the only consideration (DH is Welsh and was desperate to "go home") but it was a definate factor on our decision.
Luck! I started saving aged 11, met dh (6 years older than me) aged 17 and by the time I was 19 I had the deposit and dh had the earnings to get a mortgage.
It is so much harder these days and it looks all but impossible if you decide to have children first.
DH and I bought "late" but we had both saved significant sums when younger by living in less than lovely accommodation and generally doing everything frugally. We didn't overstretch ourselves on the mortgage when we did buy, and put down 40% on a nice but modest house - it's much smaller than I'd like but has potential to be extended. We've been overpaying significantly in the three years since we bought it, as interest rates are so low, and I'm hopeful we'll be clear in the next few years. We still live relatively frugally compared to others with similar incomes!
We were very lucky - OH had brought (with a small deposit from his parents) a flat in Brighton at the bottom of the local market and through happy timing managed to sell at the top of a little boom. I also had a inheritance from when my parents died when I was younger. Put together it allowed us to go from a one bed flat to a four bed detached in one go. Mortgage is still four figures but we made the decision to get an offset mortgage because we knew we would be saving every penny for a number of years and both had good jobs. As a result we've effectively overpaid to the point where we've halved the mortgage term. Sometimes I think that the mortgage and house stuff is the only thing that's ever really been lucky for us - most other things have never quite worked out!
My wife and I were both earning good money. We lived well below our means in a cheap rental in a less good area, and drove economical used cars with six-figure mileage on the clocks. We hardly went out to eat, and when we did we always had Tesco vouchers or a half price offer. We never rented a DVD, never bought drinks in bars, rarely bought clothes, never went to concerts/the theatre/whatever. We were able to save about 50% of our income, and did this for 5 years.
I bought my house (on my own) in 2002. Saved up while living at home. And it is a small shit house in a shit town.
But my mortgage is £188 a month. Thank fuck, given that I am not working now.
Met a man who already owned a few properties. Who says feminism is dead?! But seriously there's no way I would be on the property ladder without him, the timing was completely wrong for me as I graduated just as the shit hit the fan financially, had no deposit and wouldn't have been able to get a mortgage alone at the time.
Had loan from dd1's dad for the deposit (for house for me and dd2's dad and kids). Still need to pay him back and keep hoping he has forgotten
nae chance of that. It was the only way we could manage and I actually wish we'd stayed renting as the catchment areas have moved and now my dd2 is going to go to a school we don't want her to go to... Gawd!
We saved like mad for years. Our rent was £450 per month so we could afford to save a bit as long as we were quite frugal with our day to day expenses. We still ended up borrowing from family but managed to pay that back within 6 months. We were 30 and 40 when we finally had enough money to pay a deposit and then it was hard finding a bank/building society to give us a mortgage as our credit ratings weren't perfect (dp had never had a loan or a credit card so had no credit rating, and I had a few late payments when I was a student)
I was born in the late 60s.
DH and I bought our flat before getting married etc so it was our major expense in life. We both worked two jobs for two years and saved 20 grand. Another 10 grand in inheritance meant we had a 30 grand deposit and we could get a 90% mortgage.
Three years later, we sold the flat for 35 grand more than we bought for (which was a decent return in a bad bad market). So we had 65K when we took back our original deposit from the first flat. We then worked two jobs again (while I was pregnant) for over a year so we could make the 25% deposit necessary for our small house.
Then the bank decided we needed 30% deposit but that's another story. We got a different mortgage elsewhere.
It's been hard work, dedicating money to saving hard and some good luck, I would say.
Bought first flat in 1990 for £42k, then fiancé's parents lent us £4k for deposit. Made a small profit each time I sold a flat/house, as did my current DH so once we pooled our resources we had enough to buy the next place, inherited a wee bit along the way which went straight into the mortgage, which meant less mortgage required on the next house, and so on!
We never rented. We used savings+small inheritance for 1st deposit but it was a new build and last one to be sold in the block so we didn't need much for a deposit.
We lived in cheap, crappy accommodation for years- this house is the first we've been in with central heating!
Worked 7 days a week, at 3 jobs at once.
Of course, this was prior to having children.
Did 80 hours a week and lived in truly nasty acommodation for most of my twenties.
Very very fortunate to have a string of great aunts/second cousins who were unmarried or childless so inherited enough money to put towards a deposit. Was able to get a tracker mortgage at the end of 2007 & my mortgage is now £300 less per month than it was in 2008. (though if interest rates go up I'm fcked). Been overpaying it to try and pay it off quicker but it's a drop in the ocean really...
Dp and I both lived with our respective parents until we had saved a deposit. Then bought a one bed flat
Luck and budgeting.
Luck - my parents remortgaged their house to give me ten grand for a deposit ten years ago (otherwise I would have had to raise the cash on a credit card, or get a 100 percent mortgage... which existed in those days....).
Luck - I changed jobs and had a couple of years earning a lot of money I wasn't expecting (bit complicated, but like a lot of commission on contracts I hadn't expected to get).
Budgeting - no foreign holidays, no mini breaks, go camping instead, a very old car that works and is cheap to insure, virtually no meals out, takeaways once in a blue moon, hair cuts on training days at the salon, no 'recreational' shopping for clothes, use libraries, go for runs rather than joining a gym, do food shopping with a list and a budget.
I prioritised the mortgage and overpaid whenever I could so I now have very low repayments.
It was a long time ago but i lived very frugally for 2 years to save up £5,000 (earned £12,000)
found a small 1 bed house for £35,000
was granted a £30,000 mortgage on my salary
not sure how I would do it now.. the £5,000 was hard enough. I think the shared ownership scheme is a great one though if you can find one in an area that is right for you.
Oh and I bought a wreck. I knew it would be bad living in it till it was done up...I had no idea HOW hard it would be living like that - bare floorboards, leaky toilet, no working oven. I coped, just about!
Luck my parents gave me £35k which was a 10% deposit in old London town in 2010.
They said they'd rather me have it now than when they die.
Had a good job, lived with lovely parents who didn't take keep and saved £19000 in my first year at work. Put it down as deposit and it got swallowed into negative equity. Now saving a new deposit so we can move, but much more difficult when paying a mortgage.
Mostly luck if I'm honest...bought a 2 up 2 down for £74,000 on a 100+% mortgage (remember those?) in 1998. I actually remember putting half the deposit down on my credit card! We had no savings and added to he solicitor's fees on to the mortgage. The house had almost doubled in value when we sold in 2004 and bought a three bedroom terrace.
That's still worth pretty much what we paid for it, so we'll be staying here probably for ever as we have nothing to trade up with. We've just come off of a 6% fixed rate so are currently feeling flush.
We weren't strategic, just took advantage of the 100% mortgage to get us started.
We bought young (way before children).
So we had cheap rent (shared hourses) and could save a deposit.
Bought cheap (ex council, less desirable area) and gradually moved up.
Toughest hit was when we moved from North to South when we had DS. Halved the size of our house and doubled the size of our mortgage.
Bought at. 18 in 1998. £26k for my first house.
I went to a part time job early mornings, went to a full time job during thebday and another part time job in the evenings to save the deposit.
I think it is much much harder now. (Sorry) and its crap that rent seems to have got so expensive (double sorry).
We were lucky with timing I think. So lucky and we don't take it for granted.
We approached a nice lady, independant from an estate agent and she looked at our income, outcome, asked us our life plans etc etc and she made suggestions. At the time we both worked full time. She said that we could afford aprox £110,000. We chatted more about what we wanted in life..... babies was high on the list... doing up properties and killing ourselves for the mortgage was not so we bought house for £75,000 on lovely (ish) housing estate in North East.... (so also much cheaper than our Edinburgh and London friends). We got £78,000 mortgage, spent £2000 on furniture and white goods (we had nothing when we married... except books, my Grandma's piano etc etc... sorry I am digressing) so over 100% over 35 years.
Which sounds daft but we concentrated on being able to afford the monthly payments rather than house value and making money from it type thing. rent on flat we had at the time that was the same as are mortgage is now twice as expensive
We were very very lucky. But also i like to think we were not greedy and were careful that mortgage was buying our acomodation not obtaining an investment. We had also tried to save but felt buying at that time was a better way to go.
No way we would buy now. We'd rent but perhaps not have 'house costs'.
I reckon now its a deposit game and saving up is the only way.
By doing it in 1991 with a 90% mortgage and £65000 ex council house.
No idea how, anyone manages it today.
Bought our first house when huge mortgages were the norm (2004) - got a 95% mortgage and paid the deposit with my law school fees (reimbursed by the firm that I took a training contract at) whilst continuing to service my £30k student debt! Then moved to London in 2007 and rented that house out as we'd never have been able to sell it (small terrace, no first time buyers around by then as mortgage deals had dried up) - had highly paid jobs in London and paid off my student debts & saved £100k before returning to our home town and buying the house we live in now in 2009.
Bought a 1 bed flat for £70k in 2000, sold it in 2003 for £120k, DH had a similar stroke of good luck so we were v fortunate to put down almost £100k on a £300k house. Could never ever do similar again and i feel for everyone who cant do the same
DH bought a small place before we were married and massively overpaid on the mortgage. He ended up, with house price increases, with £90k equity. He chucked that on top of a mortgage we could afford to buy a decent house in a nice area. Unfortunately, we bought at the top of the market and that £90k has probably been swallowed up, but we know the house is still worth more than we owe on the mortgage at least. No idea how we'll ever get a bigger place though.
Luck. Buying at a time when we both earned a decent full time wage and when properties were a lot cheaper (2000) and having parents who loaned us 5k for the deposit. Also, buying in the north west rather than the south east helps!
Had we waited 3 or 4 years I don't think we could have ever got onto the property ladder.
I am endlessly grateful for this, as am now divorced and there is no way I could get a mortgage now for my home.
Bought in 2006 on a 97% mortgage, used my golden Hello from teaching. Mortgage is £480 a month. Still owe £100k <gulp>
Bought our first house in 1987 with a 95% mortgage. We saved the money for a deposit during our engagement (we both lived at home with parents) until we got married.
We bought before we had children, back in 2002. We bought in the North, in an area where property prices hadn't yet risen too ridiculously high - though we were very lucky that prices in this particular area did then rise significantly after we bought.
Jobs changed and we moved near-ish to London a few years later, and we were lucky again in that our house value had risen such that we had around 50% equity.
We could then buy (back in 2005) a 3 bed semi in Surrey on a reasonable mortgage. We currently pay around £500 a month mortgage. But I really can't see how we could have bought had we been first time buyers in 2012.
Inherited a deposit (sorry) and then scrimped, no holidays, no new things to speak of for years, bought furniture in second-hand shops, etc. Will never own houses the size that our parents have, times are very different now, although they technically started with far less.
Know people my age living in massive, pristinely renovated Victorian townhouses and they are the ones who made totally different career choices ie became lawyers and bankers (not doctors, not enough money in that any more).
For DP and I to buy a house we need over 30k.
Reading that some people paid 4k or even 12.5k makes me want to cry.
My rent is nearly 1k pcm as well.
The only possible way we'd afford a place is through inheritance and I really dont want to consider that. Plus its neither here nor there as I hope I dont have to face that for at least 20 years.
Until then, its money down the drain.
Luck- I actually feel a bit guilty sometimes.
100% mortgage in 1997, the mortgage now on our terrace is less than we were paying on rent on a 1 bedroom flat before.
It could so easily have gone wrong.
Rented room in shared house and saved like mad. I was fortunate enough to buy when a 5% deposit was the norm so 18 months of saving like crazy was enough for the deposit, stamp duty and my first furniture. I only had two folding chairs (borrowed from parents), a blowup mattress (borrowed from a friend) and a tiny portable tv when I moved in though.
We rent. But meh, my twenties were bloody fun.
Dh and I brought our first home a few months ago, at 32 and 35 years old, after 6 years together and 2 dc. We rented at £550 PCM and our mortage now for a much bigger, nicer house is £460 PCM. There's no way we could have saved on our joint income of 26k but my dad gave us 16k as a gift for which we'll always be thankful for. We could never have done it with out this.
Options for getting rent down so you can save are:
rent in a far shittier area than you would normally consider
rent a bigger house with more people in it (I know someone who did this: there were 3 families, 3 apartments but a shared kitchen)
houseboat for a while if near a canal (also know people who have done this)
rent and (illegally?) sublet, maybe to a relative
relocate totally to an area with lower rents
move in with older relatives - big big deal, this one, only works for some people, but could be amazing. My grandparents did this with a very elderly aunt, they had no savings and she needed the company (and the care, a couple of years later), it really helped them (and was very above board I promise).
Next door to us has been turned into a HMO, there's a lovely couple living in one of the rooms saving to buy their own place, they each seem to have 3 jobs and it can't be fun living with 4 other adults but hopefully it'll pay off for them.
I trained as a teacher at a crucial point and got a golden hello of £4000. DP and I saved very hard for a year until we had another £4000. That was our 5% deposit on a 2-bedroom house in East London that needed a lot of work. We did not over-extend ourself and we took 6 years to do it up (well, renovate really) We made a significant profit and bought a much bigger house. When our fixed rate was up, the mortgage repayments dropped by a third and have stayed that way for two years. Cheaper than our rent was 10 years ago. This is the only good financial decision either of us have ever made.
We drive battered old cars, shop in sales and charity shops, haven't had a foreign holiday since the children were born and almost never go out.But our home is safe and we are not subject to the whims of a private landlord.
Luck & savings - bought my first home in the 1980s & sold on at good times, always saved hard as others have said & did without lots of things so many people think are essential (ie: even though we are now mortgage free we choose to just have one TV etc). Stayed in our first home for a long time whilst other friends continually moved 'up market'. Both DH and I were very established in our careers and didn't have a DC until our 40s and then stuck at one .
We were 25 in 2002.
We were lucky as the mortgage people accepted the £5000 we knocked off the asking price of the flat we bought as the 10% deposit to get us the best deal even though 100% and 110% mortgages at 30 years exsisted.
Did it up and sold it 9 months later at a profit which bought us our first house and did the same putting it on the market 9 months later and bought the house we are in now.
It was different back in 2002-2004 when we did all our buying and selling as mortgages were so easy to get and at stupid amounts. I think we were offered 5x our joint salary which would have killed us once the mortgage rates changed and when I became a SAHM.
I don't think we could save now for the deposits needed even though we earn much better wages.
Friends have moved back in with family to save for the deposit and others have bought in areas that are up and coming to get onto the property ladder and try and make some profit for the next move.
We bought our first house years ago when it was a lot easier to get a mortgage and house prices were much less. I think we'd struggle if we were starting from scratch now.
saved like bastards when we had 2 incomes and no kids. eventually scraped enough for 5% deposit on the smallest flat in the shittest street in town, when banks were still lending 95% at a reasonable rate. that was in 2004. said flat increase in value by a tiny amount. the increase plus the deposit plus a few years mortgage payments as equity gave us enough to put a deposit town on a small house in a cheaper town.
I think it's very, very hard to save that much if you have DC, plus borrowing any more than 75% is more expensive now.
Bought house almost 13 years ago , Midlands was very cheap then and we were 31 and 33. I started saving when I got my first Saturday job at 13. I had managed to save a thousand pounds by the time I was 16 ( this was in 1982). DH didn't have much money as he had spent 8 years at University. He had however the capacity to earn a very good wage immediatly after graduation. So we were a combination of a decent pot and good future earnings potential. We paid our mortgage off in 9 years. Our house only cost 62k though.
A mix of inheritance, negotiating pay rises and years of hard saving. Our mortgage is close to £1000 a month and that's about the same as it would cost to rent a comparative house in this area.
Bought a flat with a 100% mortgage in 2006. We have just sold it for pretty much the same as we paid for it. We are using the equity from the sale as a 10% deposit on a new house along with another 5% from savings and 5% from the builder. We are more than doubling our mortgage. Scary times.
We would have found it more difficult without the 100% mortgage to start us off. We would have been paying rent rather than building up some equity. However we feel lucky to have even sold for the same as we paid. The market in our area is pretty bad at the moment. Hopefully that means we are getting a good deal on the new house though.
Got lucky. Living in NI got a 100% mortgage on 2 bed terrace before the boom. Prices then went mad and was able to sell 2 bed and get a 3 bed further out of town on a 90% mortgage. Of course now post-crash still have the house and am living elsewhere so have to either sell at loss or let it with accompanying stress.
It is really annoying OP and I do feel for you - my mortgage was a lot less than a rent would be. They have thrown out 100% mortgages across the board when actually they were a good deal for people in reasonably secure jobs.
The thing is (and sorry for the hijack), but I can't see where all this is going to end. There is a massive group of people who, at this rate, are going to not be able to ever get on the property ladder. So when they are too old to work and pay rent, the state will have to house them.
That's not going to work, is it? Surely there has to be an end point where either mortgage lenders ease up or house prices dive? Anyone have any answers?
We moved abroad. Thankyou America for your FHA loans with 3.5 % deposit. We did buy a pretty big place with the aim of releasing equity for college savings, plus the costs of moving here, so for about 6 months before hand we fed 3 of us (and a cat) for 30 pounds a week, sold off pretty much everything of value we owned, DH worked really hard building items to sell, and spent hours faffing around with cashback sites, surveys, and claiming every penny the utility companies owed us. And my dad left me some money. Thankyou Dad...
It was tough for those few months, but nothing compared to what we would have had to do to get a deposit together in the UK - no bank would touch us without a 25-30% deposit.
Sorry not helpful in the current climate but we were able to buy because 13 years ago you could get a 100% mortgage on a slary of £13,000 and buy a house with it. We stayed in that home for 9 years then moved up. We did make quite a bit on it but then the next house cost more so it all evens out. We were very lucky that things were as they were. Without a 100% mortgage we would not have been able to buy. As it was a rising market it very swiftly became less than 100%. I wouldn't want a 100% mortgage now - which is lucky because I wouldn't get one. In the late 90s you could even get a 125% mortgage!
rent the tiniest pokiest place you can bear to survive in instead of the reasonably OK place you are getting for a grand a month, put the difference into savings. Work more than you want to, spend less that you want to, put everything you can into savings.
We lived in a horrible, cramped, damp and mouldy flat for 3 years with both of us doing additional part-time work in the evening as well as our full-time jobs, after which we had enough money for a deposit on a not-paricularly-nice small house which we lived in for 6 years, paying off as much mortgage as we could and spending most of our spare time doing DIY to improve the value of the house, such that once we sold the equity was enough for the deposit on a decent house.
This is all making me want to cry.
We've two kids. We had the kids late in our life's and very early in our relationship. Our credit rating is rubbish. We have no relatives to lend money/ inherit from.
We don't have foreign holidays, shop in charity shops, cut our own hair, budget etc just to afford the rent and bills, let alone save.
We've had to move 3 times in 4 years, twice while I was pregnant, once with a newborn. Because of shitty landlords who won't repair their property or turf you out or try and keep our deposit.
Just want a home for my children :-(
Need between 10-15 grand to make that happen. How to get it?
Had a gift from my parents towards deposit, the rest I saved up (some of it while living with parents and saving every penny I didn't spend on my commute)
DH moved in, and with our combined salary we were able to increase our mortgage and move to where we are living now.
We bought right at the top of the market, and with me a SAHM we couldn't see how we were ever going to move from here. But DH has increased his income hugely over the last year and we are now overpaying madly on our mortgage so we should have it paid off in 5 years, at which point we will move again.
OP- where do you live?
£1k p.c.m. sounds ridiculous!
We live in an area of sky-high house prices, but renting a 2-bed house here would be around 6-700, and this is a mostly safe area with reasonable schools.
I bought a small 2 bed terrace house for £70,000 in 2002. My parents gave me the 10% deposit and £3000 to decorate, furnish etc (so £10,000 gift). £63,000 loan over 20yrs. My mortgage re-payments were under £330 a month which I overpaid as often as I could.
I met DH in 2006 and he was in a shared flat renting (for £400 a month) but had some savings. DH moved in with me and put the £400 into the mortgage too, this really reduced it. When we sold in 2008 we took away just over £60,000 between house price increases and overpayments.
This was ploughed into the next house and we are still out £800 + a month but we now live in a much bigger house.
OP your rent does sound very high. A lot of people on here seem to have bought in cheaper areas. Is that an option? A move to a less expensive part of the country?
We bought quite late in life (I was 30, my dh 35) so reasonable salaries and there were 100% mortgages available at the time.
1 k is standard where we live ( central area in nice city)for 3 bedroom . Realising that we need to downsize to two bedroom and live in a shittier area. :-( bit gutted .
2 bedroom in our area will be £6-800. Two bedroom in less nice area £500. We had chosen to pay higher rent in order for kids to go to nicer school and us to have more space, and not worry about buying a house.
But all that's changed after being forced to move so often. Just want somewhere I can control and not have to be forced out every year or so. You can't make a home in rented places
Yes ditzi - not trying to sound cruel but you do need to compromise to buy. My first house was in north Belfast - a quiet street which was a quarter of a mile from an area that makes the national news from time to time... If you want to buy you need to be saving like mad but if you can get a deposit together it is a great time to buy!
Honestly; we were fucking lucky. First an only time.
We bought when a flat when the builders were offering silly silly deals.
All our friends thought we were nuts. Even then when our mortgage was lower than their rent, we were tied down. . .
The kicker is once you get on the ladder it gets easier.
It's shit, we are about the only ones in our social circle with 2exception that aren't either in rented or in massive -ve equity.
My DS&BIL owe about £50,000 more than their place is worth.
Exactly - so £6000 saved in a year by moving. The alternative is to be long term renters.
We were only able to buy our house because of a key worker scheme a local housing authority have. It means they own 30% of our house and we have a mortgage for the other 70%. It was great and the only way we were going to get onto the property ladder, but it means DP can not change job unless we are in a position to buy them out. Also we can not move out of the area that the scheme covers.
We do live in the cheapest area in our town as well. We were very limited in our choices because of our budget.
Bought 12 yrs ago in a place where houses where dead cheap. We were lucky as two years later it was sold for twice the price. And used that money as a deposit to buy a house down south, when the prices were still fairly low. I don't know how people starting out these days would buy one, it would seem like an impossible dream. I despair for my kids when they are older and want to buy. Its very very difficult these days.
We've been forced to move by unscrupulous landlord. Desperately don't want to move into another rented place, been such a struggle moving. Staying with family while trying to figure out what to do.
It's a choice between somewhere nice with enough space for us in a nice place and risk has to move again at someone elses whim/ put up with crap landlords and letting agencies/ not be able to put up a shelf or paint a wall/ rent forever or live somewhere small in a crap area and save for our children's early childhoods in order that they'll get bedrooms, gardens, decent schools in a few years?
In 1982. First flat £32k. I had 3k in savings (was 22), my dad gave me £6k for the deposit. I had a 23k mortgage which was almost three times my earnings. It was just as the property market was coming out of the doldrums and I just caught it, with a little help, before London prices spiralled up until 1989. When interest rates were high I can remember paying £285 pcm on that tiny mortgage - when I was earning about £450 pcm. So glad I did it. If I hadn't had a bit of help I would have had to have bought a bit further our or in a cheaper part of London.
My dad's view was why pay a landlord 140pcm for a room in a shared house and have nothing to show for it. It was pretty tough though and felt like a huge responsibility for the first few years. Was also at a time when it was quite unusual still for a single girl in her early 20s to buy a property alone.
Could you live with your parents while you save? Could you move back in separately, and save if you can't as a couple?
The market is in the doldrums for a while yet I thnk. Can you get your noses to the grindstone at work and climb the slippery pole a bit. Extra weekend/evening job(s)? Forget holidays and expensive clothes.
Rent a studio while you save?
Is it possible to stay with family and save like mad? If you are serious about buying your only real alternative is to move somewhere cheaper to pocket the cash or do some extra hours / shifts at work I couldn't have bought my first house without doing OT as it was counted towards my mortgage application.
How old are your children, and which gender(s)?
I feel so stupid for using my twenties and thirties partying and spending. I never thought of the future, just lived. Didn't think I could have children and didn't marry till I was 37.
Now I have these two little children to protect and no home for them.
You have to start off small, be prepared to give up a lot of luxuries, and work your bollocks off basically.
You are not an idiot though. They have a roof over their heads dont they?
Live frugally and wait. There are only really two ways to resolve the mess housing costs in this country are in. One us massive wage inflation. Thus will allow the nominal price of houses to remain the same, but become relatively more affordable. the cost of this is that savers who have not been involved in the credit orgy will see their money devalued. also pensioners without inflation linked annuities will be stuffed. Also watch food and fuel prices skyrocket....
option 2 is a collapse in property prices. This is IMHO the right thing to happen as the only people who will lose are those who bought on silly mortgages at peak prices, and those who have released and wasted the illusory equity. however, this is a politically disastrous situation because the country still has a mentality that high shelter costs are good. They aren't. either way you will get a house eventually, but there will be a lot of pain for some .
To be honest we don't have a lot of luxuries anyway. There's not much to economise on apart from rent. Staying with family long term would drive us all insane I think. There's a hard choice coming up I know, and short term pain for long term gain. Either that or a lucky strike/ miracle. Tis life. :-(
Bintang, not sure that's relevant.
worked seven days a week for 15 years before having my children
Divorce settlement . Sorry, not very helpful
have patience. it seems rubbish just now, but I am a firm believer that unsustainable situations will resolve themselves - the government (all parties) and financial manipulators cannot game the system indefinitely.
We managed two ways. Living extremely frugally. As in 19p beans on value white bread toast for dinner with homegrown beansprouts for vitamin C and meat only at the weekend. I was a nanny and could eat at work which helped. We lived in a really grotty "flat" which was just the upstairs of an unseparated house about 6 feet from a motorway. It was cold and damp in winter and unbearably hot in summer because it was loud and polluted to open the windows.
Also we were given a small gift from my GILs to help. We could have managed without but it made it easier. We also bought a very run down 100 yr old house and spent all our time fixing it up to a fairly basic standard.
I bought a small house after I graduated, at my dads insistence, I rented it out. That was 14 years ago, have since sold that when I got married and bought a house with dh.
Too old for it to be helpful to you, I'm afraid. My first house cost £16,000 and I was earning £6,000 p.a. This was back in 1988 when you bought a house for 3x your salary. Nowadays it is ridiculous and I can't see my DCs ever affording anything.
In a way though, people have answered on the first couple of pages, and the answer is that they made different choices from you, as you say on P4 I feel so stupid for using my twenties and thirties partying and spending. I never thought of the future, just lived.
I think you made those decisions at 18, 20, 25, 30, etc., - which was right for you at the time, but obviously means you are in a different financial position now from those who made other choices at all those other stages of their lives.
Then you've made what you consider to be the best choice for your family in the last few years, in terms of choosing the better area, the bigger house, etc., when there were viable options to choose places which would cost you less. Now, not to say any of those decisons were wrong ones, - we all decide what we are going to do when we have choices, and different options suit different people, but few of us have had our cake if we've eaten it, most of us with houses now made choices to go without at other stages of our lives.
Ultimately, you're still able to provide your family with a place to live which you don't own in the area you want to be in, in a nice home, or you have the choice to move elsewhere (including with family) and save if owning is so important to you. You still have choice, which not everyone does.
Sorry, I don't expect this is what you want to hear.
I was asking to see if they could share a room pretty relevant I'd have thought as you're asking for advice on solutions to your difficulties. We could only afford to buy a 2-bed, so our children share- it's fine for small children, but obviously if you have children of differing genders there is a time limit on how long they can feasibly share for.
DH reminded me, they lent us not gave us the money. Really though it was living in a crappy area and sharing with an old woman who cooked really stinky food and played music loud and freezing in winter and baking in summer. Much harder with kids I know. But if you could manage the cheaper place in worse area then you could save $6k a year just from that.
Take really short showers, take baths once a week. Wear lots of sweaters and socks and turn the heat down. Go veggie and cook from scratch? There must be a way you can eek a little more...?
Thanks backforgood, that's all true and good perspective for me to take onboard. I'm feeling very sorry for myself tonight. Never a good state of mind. Sorry. I've never particularly needed to own, it's not been important to me till now I've had kids. But bad experiences in the past couple of years have made renting feel very insecure. Particularly the place we just finished moving out if today, which was unsafe but the landlord wouldnit fix it and there was very little we could do about it. Bintang, different genders but young enough to share for a few years. I think they'll need to.
Phew. I was in 2 minds whether to post or not - I was expecting to be shot down .
Seriously, I understand it must be difficult to have no security of tenure, and totally understand that in some areas the cheaper areas are really not places you want to bring up your dc (not in all towns, but in some), but ultimately, it depend how important it is for you to own.
There are lots of posters on here who regularly advise on how to budget, if saving might give you a foothold. Good luck.
Bought my wee 2 bed flat in 1995 for 42,000 with a 100% mortgage, sold it in 2000 for 95,000 and used the profit for deposit on the house we're still in. I realise we were extremely lucky.
We were very lucky - although it didn't feel like it at the time.
In 1987 DP and I were living in a privately rented furnished flat with a no children or pets rule. Found out I was expecting so we knew we would have to move out. We managed to buy a house that needed a shit load of work doing on a 100% mortgage for £22k, we had no deposit but we were both in work so were able to get a mortgage without too much trouble. Getting the basics done and furnishing it just about wiped out all the money we had and my unpaid maternity leave (got made redundant just before the 2 year qualifying period back then) made the first few years a real struggle.
Within a year of us buying it the property boom had happened and our house almost trebled in value. Not that we were in any position to benefit from it, we just realised that had we left it any longer we wouldn't have been able to afford to buy anything at all. Our own house would've been well outside our reach which felt a bit odd really.
It's not important for me to own in the sense that I want to build up wealth and accumulate and all that. I don't want more than my share. I just want to spend the money I earn on somewhere to live that I like, feel secure in and can paint my children's bed rooms ( or atleast put a photo on the wall without written permission).
Feel very stupid as in 1996 I got an £8,000 insurance payout. Wish I could go back fifteen years and tell my head strong live for the moment self to buy a house with it or invest it, rather than the travelling and partying I did instead.
You wouldn't be who you are today if you hadn't lived the life you've lived
Can't change the past, just look to the future, and good luck.
Moved to Hull!
Best decision we ever made.
We bought our house in June so I probably have the most recent experience. Sorry to piss on your fireworks but it is so much harder now than it was a few years back. We bought a 3 bedroom house for 160k which is very cheap for where we live. We had to put down a 32k deposit so with fees etc we needed 37k saved up. We couldn't have done it without parental help.
i am 24 and i have just bought my council flat. it is in such a lovely area in a lovely very uncoucil block. my flat is valued at 160,000 and i get a discount so i am buying it for 90,000!! and i didnt need a deposit. i am very pleased!
Bought in 2007 at height of market in London but good flat in a great area. Saved like mad before that and had some help from. Parents (enough to cover stamp duty - which was a lot). Lived with telly on the floor for 3 years and gradually improved the place. Got v lucky with interest rates - which dropped our payments from £3k per month to £800! But we continued to over pay the difference plus more and now have £200k equity after 5 years (house prices haven't eeally changed so thT is all savings). We live well but no where near to the extent of our salaries (which have also gone up consistently over the past 5 years - industry specific and savvy job changes). Grateful now as it means we can move to a family home with hopefully not too crazy a mortgage and still survive the arrival of twins next year!
Bought my first flat with a 105% <shudder> mortgage whilst at Uni in 1995. I've always bought doer-uppers, so combined with market rises have increased equity that way
tries not to look at current peach bedroom walls and orange curtain combo. We are now in our forever home.
When we bought they were offering 100 % mortgages. In fact I think we had a 105% mortgage and used the additional money to pay our legal fees and furnish the flat. We were just back from a year long backpacking trip and had no savings at all. That was 13 years ago and it was very different then. We wouldn't have a chance now.
we saved for 10 years, whilst living in a rented flat. At mid 30s finally moved into a bought house, but it was just too expensive before that.
Don't feel too bad, and beat yourself up thinking the grass is always greener on the otherside.
Plenty of people who own end up hating their houses, stuck in them with negative equity, or living on value baked beans for the sake of living in a big house.
Others get lucky with inheritance, timing etc... and end up with piddling mortgages for a lovely place.
What matters to your kids? That you are happy/not stressed and have time for them, that money isn't a problem and doesn't stop you doing what you want to as a family, that you live in an area where there are good schools, friends, parks etc... nearby, and that they have enough space at home that they are not on top of each other. Kids are really not that bothered about the colour of the walls.
You can do all that in a rented home as much as one that the bank owns. In some ways there are benefits - easier to trade up when you need more space, easier to move for school catchments.
Hang on, OP -
Keep it in perspective - you went travelling, you saw the world! You have memories that others who built conservatories or bought houses do not or never will have
I know what I'd rather be thinking about when I'm sat in the nursing home or rented damp home when I'm 75...ooooh the saving and saving for the bricks and mortar stress, or the sun, sand, exotic travels and chances taken when you had the health strength and life in your hands to do it
Hang in there and just hug your kids and be thankful you have them, and then just cut back, live simply and things will fallinto place when youre least thinking about them
we bought our first house in 1998, in London I was still at university (medicine) & dh was in his first year at work (civil service, on 24k). We found a 2 bed house in Poplar (new build) for £80,000 & managed to get a joint mortgage for 70k. We scraped the deposit together from my student loan, money we'd been given as a wedding gift & credit cards!
No way would we be able to buy anything similar now; not in a million years. Our current (grotty) two bed terrace outside London cost 140k, dh is now on 30k pro rata (took a 50% wage cut over two years & works a short week so gets about 25k) & I'm a SAHM with a disabled child & not likely to be able to work for a very very long time. Ho hum.
Himalaya, thank you! To be honest I've totally agreed with you for years, which is why I've been doing what we're doing, ie renting a nice place in a nice area. The thing that's changed is that I'm sick of moving, it's too hard with the children and my son is old enough now to notice, and is crying at night not sleeping wanting to go home. But we were forced put by a shit landlord who wouldn't do repairs that made the place unhealthy to live in.
So everything is packed up and stored and we're staying with family and we don't have the heart to look for another rented place. Just don't feel like I can unpack again if it isn't atleast a bit more controllable and permanent.
This is made worse by the fact my (estranged) dad died a month ago. I was hoping for an inheritance, but he left me nothing.
100% mortgage 17 years ago, not very helpful either, sorry.
It definitely paid off, but I do think it restricted the amount of travelling I was able to do, which is something I regret.
90% mortgage,first taken out 15 years ago on the basis of my dh's salary (he was dp at the time). I had just left university. His parents gifted him a deposit on a 40k flat. We sold the flat 3 years later for 98k. I was settled in a career by then, and our next mortgage was joint. Bought house for 235k in 2000. Sold for 300k in 2005. Bought next house (where we live now) for 330k. It's now worth c. 480. But we have spent a lot doing it up. no mortgage now though.
So really was just down to good luck (dh's parents are very generous) and circumstance (bought when prices were still manageable and hefty mortgages were still given). We're lucky - dh's older brother was 5 years ahead of us in house buying and by changing up and picking rising area managed to make much bigger leaps each time, ending up with 850k house from similar start, labeit 5 years earlier.
I was lucky enough to get a teaching job straight out of university. Me and DP both lived with parents, saved really hard for that first year. Bought a 2 bed flat at ages 22/23. It needed a lot of work and we did most it ourselves.
It's worth quite a lot more than we paid for it now (bought it two years ago) and hoping to move to a house in the next 1-2 years. £500 pm, London borough.
For us it was living with our parents still which enabled us to do it. Neither of our parent's were able to help financially, but my parents allowed me to not pay any house keep which meant I could save.
I feel so jealous and sad reading all that. Even if we manage to get a deposit together, we 'll only be able to get something tiny.
We lived in a tiny 1 bed flat, in a less than great area so we paid as little rent as we reasonably could. Jointly saved for 4 years, DH had been saving for a long timebefore that too. We then bought a small house and are overpaying the mortgage. I'm lucky I married a saver basically.
You seem completely determined to be frustrated over this op. Take a step back, analyse the economic and monetary situation this country is in. Do you seriously think that there isn't going to be a resolution of this massive disparity between wages and housing costs eventually? sit back, enjoy the important things in life and stop working yourself into a tizzy. Eventually the market will return to mean. They always do.
Op you will get there - just so sorry it takes so long to save.
My sil recently split from bil and they were renting. DH and I just worked out it could take years for her to be able to afford to buy.
ditziness I feel for you because I'm the same. I moved to London when I was 18 and spent many years just living life. When I was 25 I met DP - now DH - and we settled down, renting. It was all fine.
Then suddenly I became obsessed with wanting to buy, I needed the security so badly. I'd had bad experiences of horrible landlords and losing my home because of their shittiness - the lack of being in control of my own destiny killed me, I hated it. But DH wasn't interested in buying and I couldn't do it on my own. I was saving like mad and forgoing a lot but I couldn't force him into it - I reckon it takes a lot to organise house buying, a mortgage - a lot more than just money, a lot of emotional input. It didn't work if we both didn't want it.
Now we're married, I'm nine months pregnant with our first, and I still often get a pang of wishing we owned where we live. But you can't torture yourself like that. What will be will be - we'll keep renting until something else happens. Like you, we might move in with family, or things will change in other ways. But of all the things I wanted, I am more grateful for having DH and our first child on the way than a house I own and I can't speak those words anymore - I wish I owned. Because I wanted three things so badly - marriage, children, a house - and I have two out of three. I am grateful for what I have and I no longer look to others and what they have.
Things will change. For now my best advice for both of us keep your chin up, keep your finances healthy because when things change - and they will - you want to be in the best position possible And plus - I wouldn't buy in London now if I had all the tea in China! I'd feel like a right mug, at these insane prices. I'd buy elsewhere, for investment purposes, rent it out and get security that way while moving on up the rental chain to a nicer property.
Have you thought about buying a permanent type mobile home to start with? There are some near where my mother lives and the two sites where they are quite nice. One is in the village and walking distancce to everything.
I'm in a similar position OP, it's frustrating.
We spend over a grand renting a one bed place.
But when I look at people doing v expensive repair jobs on their dodgy boiler on a property that's in negative equity I feel a bit better about it!
Rented cheap, lived cheap and saved saved saved.
Or people that have over-extended themselves ridiculously.
I know one couple who had a lovely three bed house just on the outskirts of London. She earns slightly below average, her husband is close to 100K. I would have been very happy in that situation but I guess it wasn't enough because they've bought a lovely, huge, converted barn. I have no idea how much it is but - I guess the mortgage is killing them because even though her husband earns what he earns - she has said she can't afford to quit her job and has to return to work from maternity leave.
This woman is a very sweet, kind, home-making lady, bakes all the time, is very creative at home and all she ever wanted to be was a SAHM. Literally, that was her dream and she was very open about that. If they'd stayed in their three bed house, she could have had her dream. But she also wanted the massive house and although they got it and I'm sure it's lovely, she has to return to a job she hates and resents - pretty much the opposite of what she wanted for her life.
I have to say - I don't get it. It's not like it was a choice between buying or not and being a SAHM. They had a lovely, lovely house, and a three bed house is more than sufficient for a young family. Her choices baffled me, knowing how much she wanted to be a SAHM mum - and by her DH's salary, she should be able to. When she said they were upset they'd be losing child benefit and how she couldn't afford to not work - it suddenly dawned on me how much they'd over-extended themselves to get this big house.
I dunno - horses for courses and all that. I'm sure she would have weighed up her options and made the right choice for her, but from the outside, it was so at odds with what she said she wanted.
Worked long hours before ds was born and bought just before the boom, paid off our mortgage on our flat which was then worth 4x what we paid for it and moved out of London and bought a house. We were very very lucky because it would've been very hard otherwise.
Both bought at 25, before we met each other. Both properties trebelled in the 8 years we had them. We both scrimped and saved and were utterly determined.
I bought my house in London in 1995
It cost me £120,000 and I earned 50k - so very affordable for me.
It's now worth £850,000 -and i'd never be able to afford it, if I was buying now.
I feel very sorry for anyone trying to get on the property ladder today.
houses were affordable in my day because they were in line with the 3 x salary rule....now they are way out of synch
From what I've read here, most of you were able to buy houses for the first time because you had no children!
If only we could go back to marriage before children as well.
Yes I guess I am feeling determined to feel pissed off just now. Not constructive or particularly good for my mental health. But that's where I am today. Thanks all for your experiences and advice. I appreciate it
got a 100% mortgage in 2001 with my ex partner a few years after we graduated (I was 25) on a £115k 2 bed property in bad area of town. we split up after 5 years and house was worth about £155k, so by that stage I could afford the mortgage on my own and bought him out. Met current partner (who lost all equity he had in a divorce) and we stayed there for 3 years, had DD, and sold house for £175k in 2009. Bought current house in nice area (complete doer upper, no electricity, water, floors/ceilings in some places for £250k (max we could afford). Madness with a 1 year old as we got very cold and dirty for a long while (we had to live there as had nowhere to go).... However, have scrimped and saved since and done house up over last 3 years (still going) but it's now worth £350k.
So mixture of luck (could not have afforded a house without 100% mortgage before that, we were renting in shared houses and although professionals, have never been able to save or have inheritances) and buying in bad areas that are on the up and houses that need a LOT of work.
house is finally getting to the stage where it's almost worth it!
I think the shared equity schemes are actually propping up the over inflated housing market at the moment and far from being a good thing are keeping prices sky high by making unaffordable houses affordable. The market needs to level out and schemes keeping prices high and allowing people to "buy" are partly responsible.
We bought our first house when we were 21 which was 7 years ago. We had about 4k saved but got 100% mortgage and used that for the work needed. Sold it for around 30% more than we'd paid and bought a bigger house for slightly less than we sold the other one for.
Fixed rate for 5 years in 2006 so onlystarted benefiting from the drop in rates last year which we needed as dh got very ill and was out of work for months.
Lots of posts saying things will get easier, as prices will drop soon. I'm not sure if they will, as the number of properties being built is falling well short of keeping up with the increasing number of households, at least in the south of England. Personally I think a period of slow growth, where prices fall slightly in real terms, is the best you can realistically hope for, but I'm no expert.
Whatever happens to prices though, you need to take control if you want to save a deposit. Make a realistic plan, and stick to it. If you can save £250 a month that's £3,000 after a year, push it a little harder and aim for £10,000 over 3 years. Does that get you anywhere?
The numbers will vary, but you need to be realistic, and take satisfaction from seeing your savings slowly building up, chipping away at the total.
Sounds like most people did it before the credit crunch, (2007/8), before children.
Impossible for me - I was 19 in 2007 and in no way could afford a deposit on a house. I think the only first time buyers around now are using inheritance or loans from family, and/or they have well paid jobs and no children.
I have a nice stable long term let instead, like gold dust, am thankful for it. Would be nice if I could paint the walls and generally feel like it was mine though.
I bought a flat in 2004 using some money inherited from my dad as the deposit, and i was also working a well-paid job, but that was back in the day when they'd lend to anyone. When I got married 5 years later we lived there together for a bit, then rented it out and bought a house in a much cheaper area of London using the equity in the flat as the deposit on the new house. I'm hoping we've played our cards right by not selling when prices were low.
All of this was on my income alone because my husband is freelance and not earning much. However, having a second income, however small, still makes a big difference to our lifestyle; I really don't see how we would have afforded month-to-month living had we borrowed the most that lenders were prepared to lend so I really feel for those these days who have to borrow the most they can to get somewhere. And i worry about the longer term effects on the economy. Every £ spent on housing is after all a £ not spent in shops, cinemas, restaurants.
I know i'm very fortunate in that the stars all seemed to be aligned for me in that I had some inherited cash, prices hadn't reached their peak in 2004 and lenders were prepared to lend.
I graduated in 2007, had an Ok job. DH graduated a few years later, also ok job. We rented somewhere small and cheap, saved hard, asked for house deposit contributions for our wedding and bought a 3 bed house when I was pregnant with DS.
But I never got my season working in the Alps I wanted, I hate the house and village and feel horribly trapped (whereas I liked where we were renting).
Hmmmm. "No holidays, wearing clothes until they were threadbare/got holes in, rarely going out for a meal/having a takeaway"
Lol, we do that just to pay our rent.
Combination of the following:
Saved almost every penny I earned between age 16-19 (working full time)
We bought our first house in the north east before the house prices crashed.
We paid £57,000 for it (2 bed end of terrace) in 2005 when we were 19.
Had a good deposit from my savings and both sets of parents helped us a little bit with furnishing it, etc.
We were there for about 18 months then relocated back to the midlands, and have just bought our forever home down here but in all honesty the only way we have managed to do that is because of inheritance money left to me by my dad who sadly died 5 years ago. I don't think we would have been able to buy anywhere round here without that money as we have no savings now.
My sister and her boyfriend have just bought a house after renting for a year and they are now better off by having a mortgage rather than renting!
OP - is there anyone in your family with any money? It's just that my aunt has recently retired and has received a lump sum. Her daughter was paying 5% on a mortgage, and my aunt was getting nowhere near that for her savings, so she's paid off the mortgage and her daughter now pays her the 5% that she would be giving the bank. It seems like win win to me and the money stays in the family. I'd not heard of this before but might be an option for you, although probably fraught with risk. Disclaimer:I am
obviously not a financial advisor.
I know that owning is a priority for you, but think how your life experience will enhance your children's upbringing. I've never been on a plane or even travelled abroad or been to a music festival because there just wasn't the money (all going on the mortgage). When I hit 30, I sat down and cried for all the things I'd dreamt of doing and wouldn't now that I have the house and the DCs. Some of these things I am still aiming to do before I'm 45, but it's not the same.
If we hadn't sold our 2 bed in London, I was thinking about giving up our bedroom and buying a nice sofa bed to use in the living room.
Your children are very young right? why couldn't they share a bedroom and you could do without possibly?
That way, you could rent something much cheaper, and be able to save the difference.
Like you, I have wasted thousands and thousands of pounds on nothing, I'm also wishing a bit that I had done things differently.
Didnt buy a house until I was 32 (DH 34) By then we had enough to pay a deposit.
Another factor in me being able to buy was that as
I was single, I'd always lived in shared houses/flats after graduating rather than setting myself up in a rented flat as my own household. This enabled me to save to add to my (small) inheritance, and also spurred me on as I was desperate for a place of my own. I appreciate this is totally not for someone with a family, only for a single person, but it was worth the few years of flatmate horrors.
I also was just about the last generation that didn't graduate with masses of student debt. I managed at Uni with a combination of student loans and grants and help from my mum, and also interest on my inheritance (I didn't dip into the capital myself except to pay for my masters) - interest rates were way higher then so I got about £70 a month as it was in a high-yield account, which went an awfully long way as a student. When I graduated I immediately started a job at a level that triggered the student loan repayments, and after 5 years they were paid. It's a world away from today when it's a rare student whose debt is in the single-figure thousands.
Casper it's not even the house prices - though I'd still struggle to justify 250K for a 2 bed flat. It's what the banks want - when you have been paying more in rent for years more than you would for a mortgage on a like for like property (and area!) and so have proven you are credit worthy and have never defaulted - yet are refused a mortgage, that's the problem!
The crazy deposits are the issue. I don't think 100% mortgages are a bad thing provided you don't over extend yourself. I have a good job, a good above-average salary, have an excellent credit score, and have never, ever not paid our 750-1k rent (risen over 5 years) and yet because I do not have 20, 30, 40 thousand pounds available to me, I am not eligible for a mortgage.
I understand everything went tits up, the banks want more loan to value security, etc etc. But when I say I hope things will get better, I mean the terms for mortgages will get better. A 10K deposit in three years is doable but still meaningless in London.
For people like me, it's immensely frustrating - we are capable of paying our mortgages. We have seen the mistakes of 2008, of 100% mortgages being given out but in huge sums, and we have paid for other people's mistakes in that respect. My personal options are: keep my finances healthy and in order, keep saving, and at some point potentially buy in my home town where prices are insanely low in comparison to London, and have that as collateral and security, and keep renting in London.
First house thanks to savings. This house thanks to a loan from dh's boss and part Xing the first house. The loan is interest free and we have 3 years to repay - trying to do it in one year by cutting back and being frugal. Very lucky - wouldn't have been able to move without it.
Quite frankly that was it. Dh has been with the same bank since he was 16 and then when we got married, the account became a joint one.
They say banks don't reward loyal customers but our bank knew our credit history. On their advice I got a credit card (our first) for a year or two whilst we were just considering the possibility of moving. This gave us a credit score.
We were not in any debt and never had been. I can count on one hand the number of times we had been overdrawn. We were very very frugal and it showed. Also, like you we had been renting for a few years and that counted for something as the bank could see that our rent had come out every single month without a problem. We would be paying less with a mortgage so the bank knew there wouldn't be a problem keeping up with payments.
If I were you I would approach your bank, possibly armed with a reference from your landlord if you can get one, get a year's worth of bank summaries and point out your incomings, your outgoings and how much a mortgage would be.
Banks can use their discretion still. Because ours could see proof of our careful spending and because we had been with them a while, we didn't need to give them proof of our income. The bank instructed the underwriters to approve our mortgage application without the need for proof, which was excellent because we wouldn't have got one otherwise. My dh's basic wage was not enough and my wage as someone self employed didn't count.
I know many people have been in the same situation as us and still been refused a mortgage. But I really do recommend making an appointment with your bank, sitting down and talking to them face to face, with your credit history and bank statements on the table.
It probably differs from bank to bank and even on the person you deal with, but never say never. Just because someone else tried it and were turned down doesn't mean to say you will be. You might be lucky like us and turn up on the right day with the right person.
It's worth a shot.
saved every penny to the extent of not taking the bus and walking miles instead to save.
We bought our first house in 1998 when I was 27, dh 28. We managed because we were both working full time in good jobs (me teaching, dh was a junior doctor back then). Also, we were buying in the Outer Hebrides, where we got a 3 bed house with huge kitchen and lounge, granny flat and a holiday cottage in the grounds for £80k!
When we moved to Glasgow in 2006 we didn't sell up, we rented for a while. Our mortgage was pretty much paid off, but was one of hose ones you can draw down on (it has a name but this morning I jus t can't quite think of it!) so we were able to get a deposit to buy in Glasgow too. We now rent out the Hebridean house as a holiday let, along with the cottage. This gives us a separate income which is good as I only have a very part time job due to illness and it takes the strain off dh.
We also now get cheap holidays as we go back several times a year.
But whoever it was who said you can only manage it if you are both working pre kids is spot on. We got on the property ladder when prices were lo and our wages were good. We built up enough equity to buy again. I'd hate to be starting out now!
Ditziness - dont beat yourself up. I think you've had a really bad run of luck with crappy landlords - they're not all awful so it is possible to rent and feel happy and secure. If you cant afford to buy outright, could you look into new builds with a shared ownership scheme? That's what some of my friends in low income jobs (nurses, teachers etc) did when getting on the ladder and they were really happy with it.
I bought my first place in 2000 in London for £130,000 - small 2 bed flat in a shitty area between two cool areas in zone 1, walking distance to work- my dad had to go guarantor on it as it was 5x my salary but I had a small deposit (saved up for over a couple of years by scrimping hard, going without holidays etc) and a good job with clear career progression and got in a flatmate to help pay the mortgage. Sold it a couple of years later as the shitty area was starting to gentrify - nowadays it would be £350,000 easily in that area! As with previous posters, I really dont envy anyone trying to get onto the housing ladder nowadays.
We sign on the dotted line for our first house... In two days
We have borrowed the deposit from a kind family member after renting for eight years and having two children (no it wasn't an option medically to wait until my thirties to have my babies and I only just survived the last ones birth at 28).
We will be in debt up to our eyeballs but the mortgage on a slightly smaller house round the corner will be the same as the rent we are paying. And it will be ours! Just been a long hard slog and it will be a challenge now to pay back as much as we can to the relative as they have been so kind to lend to us. Neither of our parents are able to help so we are very lucky.
We bought a repossession in our mid 20's (shit smeared over the walls, dog hair everywhere, the gas and water cut off and all the previous owners possessions still there), in 2004 with a 3k deposit.
We sold and bought again at the height of the boom in 2006 and doubled our house size and mortgage.
We've just sold again at a 4k loss and moved into something older, cheaper,and bigger. The location isn't as good on paper, but we won't be completely screwed if it all goes tits up.
I don't know how people do it now with no low deposits like there used to be. I think we paid 3% deposit for our first. But then I watch programmes like Location Location Location and Tilly and Rupert are fresh out of uni first time buyers with 700k to spend and I wonder how they've managed it.
We just bought our first house for £218k, with a deposit of £44k, but we are spending about £20k on doing it up. We couldn't find anything decent and big enough where the sellers would take £250k or under (most wanted far closer to £300k and those houses still needed work), but we managed to find a house being sold by a developer (having been part exchanged) where the price wasn't ludicrous and left us enough to do the necessary work to make it liveable while we save up and do all the cosmeic stuff. It needs loads!
We saved up £25k ourselves over the last 2 years by living quite frugally (we do have a relatively high family income, so living quite frugally meant there was at least £1k a month left over). We'd've been saving for another 2 or 3 years before we could think of buying, but DH inherited a chunk of money when his grandmother died, which mostly went on the deposit and allowed us to use most of our savings for repairs (so far they include: fixing the roof, including 3 areas of badly fitted, leaking flat roof; replacing almost every window in the house, as the double glazing was so blown you couldn't see through most of the windows; uncovering the abominably terrible DIY garage conversion; a completely new kitchen with an actual window in it and a hob you can use without fear of setting fire to the wall; a new shower or, possibly, a new boiler depending on where the problem lies, perhaps both; fixing the toilet to the floor, as it's not current attached to anything properly and you can move it around a foot in most directions; plastering in most rooms and several ceilings... And then we can get to
saving up for thinking about the decorative stuff).
Houses are expensive.
ditziness have you contacted your local housing association and spoken to your local housing officer? It varies from area to area but some do great part buy schemes. Might be worth investigating. Like others have said, the goverenment will have to do something to help first time buyers soon as the situation is impossible for them without outside help. We rented for years with the kids so I know how hard and unsettling it is. However they they are some good landlords out there who would love a family to live there long term, it's just finding them that's the problem!
Had been saving since I left university, only lived in shared housing so rent was cheap. DH had also been saving since university (prior to me meeting him) and had then bought a flat. So when we met and started living together we rented a flat very cheaply together, still saving. We both had well-paying jobs. We married very cheaply and continued saving and managed to buy a house with our joint savings and DH selling his flat.
We bought ours in the days when paying a 5% deposit was the norm and stretching yourself financially was ok because you could be pretty sure your house value would go up....
I don't think we could do it if we had to start again now, which is no help to you, I realise. I do know a couple of friends who were in a similar situation to you - they bought new build homes through schemes which meant they didn't have to find huge deposits. Only any good if you're happy with a new build, though. There are also local schemes where you can apply with your council for shared-ownership - then you gradually buy the rest as you can afford it.
I am probably around the same age as the op and bought my first home in the late 80's. I bought a very small studio in a very expensive part of the south. I always knew i wanted to buy asap so i worked and saved from my early teens. After college i went start on to work even though i had the required A levels to go to uni. I kept my student part time job and worked 9 to 5 in my full time job. I stayed at home with my parents and saved every penny i could. No traveling the world, clubbing or flash cars and expensive clothes.
Took me around 4 years to save enough for a deposit and costs and then i found a mortgage that would also take into account my part time job and i was able to borrow 3 times my total earnings.
The place was a total wreck and very small on the top floor above a betting shop. i put in a new kitchen and bathroom and added masses of storage to a very small bedsitting room. I was paying 15% interest at one point and then the market crashed just as i wanted to sell and move up the ladder. I lost money but managed to claw some back on my next purchase.
I didn't meet my husband or even think about settling down until i was in my second property and didn't have children until married and in my third with a joint mortgage and a bit of savings.
A relative has lent us the deposit and we are paying them back with interest... kind of a makeshift 100% mortgage!
It's still cheaper than renting a family house.
I know I'm very lucky.
Bought young (age 23) with then-BF now DH.
Worked three jobs and DH had two.
Bought the smallest cheapest house in nicest bit of poor area where we could afford.
Did as much work as poss ourselves - didn't finish buying furniture for about 3 years after we moved in, just bought what we could afford each month.
Rented a room out to help with costs.
Didn't go on holiday, didn't have a car, didn't start a family young, didn't go out drinking, clothes came from supermarkets.
Inheritance for deposit and bought a bargain when the market crashed. So a spot of luck on one side. On the other side we own our family home and a rental that was bought at the housing peak and we now can't sell it so have been forced into reluctant landlords which just costs money!
Bought in 2001, so for starters our first house would cost half what it would now. We bought a house 4 years before we got married, after we had lived together 2 years, that seemed a more important priority with housing already having gone up in the late 90s. We also both had professional jobs so lenders were falling over themselves to give us a mortgage. Then we got a considerable sum from DH's parents to help us get something bigger than we would otherwise. In short, we were very fortunate on several scores.
Can I also just say, that if you don't want your children to be in the same position then please do start saving for them now.
If you save the maximum amount you are allowed in an ISA for 18 years they will be left with more than £100,000. But even if you only save £10 a week that's £9,360 by the time they are 18, without the interest.
This gives them a small deposit at least, which they will bloody need, esp if they leave Uni with loads of debt.
I suspect that most posters on here would be in a far better position had their/our parents saved up for our future. We know now what difficulties our children might face, so I reckon we need to start thinking about giving them a helping hand.
<marks place on thread> in hope of any ideas
we are 33 and 41 and still
would love to buy but doubt will ever happen now
Bought first flat age 21, 10% deposit, interest rate was 15.5% (circa1991?). It was still cheaper than renting.
Always resented every penny spent on rent from age 18 as being dead money.
I think the problem is not high deposits, it's high expectations in many cases (outside of London anyway). I look at my close relatives who have not bought, and the biggest difference between them and me (and other relatives who have bought), was their expectations of housing right at the start of their working lives.
What I mean is, the ones who bought, lived in scummy flats for 2 or 3 years and saved damn hard, no cars, expensive furniture etc until they had a deposit, and bought a property at the bottom end of the market, at age 20-25.
The ones who are now still renting in mid 30's, all rented bigger expensive places and borrowed on cars, furniture, holidays, so at the age of 20 or21 were already getting used to a certain standard of living... it's hard to pull back from that once you are used to it.
We bought when they were handing mortgages out like Santa gives Christmas presents. No deposit, no savings, two rents.
If i were you I would move into the smallest cheapest place I could possible stand. As you have children you will want to avoid the very worst area but you will need to compromise? Short term pain for long term gain.
I realise my situation is different but we are about to embark on a major refurb/ extension project. During this time we are going to attempt to live on site. I won't have a kitchen. Dishes will be washed in the bath. I will have to use a laundrette. I won't always have heating/ hot water. We will in effect be camping. It is going to take a year and it will be hell. If it gets too unbearable we will move into a caravan on site. Not ideal with a 14 and 7 year old.
We cannot afford to move out and rent so we will just have to get on with it. Of course it will be worth it because in the end we will have a lovely warm safe home to our exact specifications. If i were in your situation i would be prepared to make compromises and put up with less than ideal accomodation, if it meant I could get what i wanted in the end. Which is a nice safe home for my family. If I was not prepared to put up with the mess and inconvenience I would have to continue to live in a house that is not suitable for my family.
A year is not really that long. We started planning all of this nearly a year ago. Picking an architect, agreeing on a plan, getting permission, putting out to tender, picking a builder etc etc. You and the children will adapt and at least you know it is not going to be forever.
Then when you have your deposit you can buy a house that will be your home for the rest of your life if you want it to be. People are going to be working into their 70's and living well into their 90's so you have not left it too late.
Saved and saved and saved in our mid 20s to buy a flat in the city centre where we live. Renvoated the flat with a bit of spare money and a lot of hard work on our part (we did most of it ourselves). Got lucky with the market, sold it at the start of this year for a nice profit. Used the profit plus a little extra savings (we don't go on holidays or buy lavish things, etc) to buy our dream house in the suburbs. The house needs some work, and we're prepared to work hard to make it what we want, hence why we were able to afford it.
Re mortgages, both times I've bought I've used a mortgage broker and it's been so worthwhile. I like to think i'm a reasonably financially savvy person but i can't imagine navigating all the products myself. They also know which lenders to go for and which ones have more leeway, and can speak to the underwriters directly to explain your circumstances to avoid you being kicked out at the first hurdle.. Both times, I've not had to pay any brokers' fees myself. So if you are getting short shrift from banks I'd really recommend using a broker.
We bought the council house we lived in so didn't need a deposit. It was also at the time when house prices were rising really fat and banks were lending to everyone.
Agree with Scotch. The houses and flats we rented were far nicer than the house we bought. But we knew that we wouldn't be able to afford to buy a nice semi or through terrace with a garden in a nice area - so we bought what we could afford which was a 2 bed back to back terrace with a tiny front yard in a 'challenging' area.
Then worked liked buggery to be able to improve it and move on from it. We also didn't go to uni so we've both been working since 18.
Message withdrawn at poster's request.
Bought a house in 1999 that either of us could get a mortgage for (small house, iffy neighbourhood, insecurely employed). Before last big house rise. Would not be on property ladder now if we hadn't bought then.
Most of my cousins have lived in Gran's spare bedroom & saved like crazy to get a deposit together.
We lived on one income for a year then at the end had enough to cover deposit and renovations, moved into beautiful home. Tripled in value within a year, total luck, sold and used the equity to buy two more places. Etc.
Some luck, some planning and scrimping.
this thread has been so interesting. not so much about the inheritances and 100% mortgages but the other stories about frugal living. i used to always think it was mainly family money that helped to make up those big deposits!we tried it awhile ago but i found it very hard to keep my eye on the bigger picture. our current rent is £1200 a month (we live in Zone 2 London). before we moved here we used to save £1000 and live on £1000 but we've just lost the drive for it over time. now i prefer paying a high rent in a nice area than a low rent in a crap area, and would rather have money in the bank as savings whereas DH still wants to buy a house. i liked that some people became owners in their mid 30s so theres still hope for us yet!
crescent, we bought our house 18 months ago. I am 40 and dh is 46.
95% mortgage on an 85k house back in 1997. DH and I had a joint income of about 40k at the time. The deposit of 5k was DH's life savings.
15 years on we are in our second home, which is worth about 380k with a 130K mortgage. Our combined income is 75k. If we were starting out today from scratch we couldn't afford to buy a home in London. I feel very, very sorry for your generation. You do have it tough.
We bought our house in 1993, so only a small mortgage, but even so we had to save up for nearly 10 years before we could afford to marry- living apart and very frugally. Dh was 33 when we married: until then he had lived in shared accommodation/rented rooms, eating as frugally as possible and writing letters to me to save on the phone bill (before the days of cheap calls). But we managed it because we deliberately put off the whole living together and having children thing- would have been harder otherwise.
thanks THERhubarb! that makes me so hopeful.
crescent my sister is 40 and her husband 52 and they haven't bought together yet - they plan to do so in the next few years but their priority is not to keep moving up the ladder but, rather, to find somewhere once and for all so that they're not paying a mortgage when he retires.
Never give up hope.
Talk to the bank. Keep talking. Do whatever it takes to notch up an excellent credit score. Get a reference from your landlord if you can, or if not then you are entitled to a written record of your rent payments to prove that you have never defaulted.
Pay off any existing debts. Do not borrow what you cannot afford to pay back. Scrimp and save because any savings, no matter how small, prove to the lenders that you are capable of saving and managing your finances.
There is a lot of discretion on the part of banks and underwriters, which is why I believe fully in meeting managers in person. Don't just apply for a mortgage, make an appointment, sit down and discuss it with them first. They can usually offer you something that is not available online or over the phone.
In my group of friends..
One had an inheritance which allowed her to buy outright
One had her parents cover 75% of the mortgage
One bought a house her parents owned, at "mates rates"
One made a killing working in recruitment for a few years and saved all her bonuses
One bought before the crash when prices were low.
It's luck of the draw really isn't it?
Op, the great thing is that you can do things differently for your children and bring them up to be financially savvy. I saved half of everything I was ever given (£5 here and there for Birthdays etc) and my parents matched my savings for me. So although it was small sums, I was used tithe idea of saving and always saved half of my earnings as a teenager/student. My parents had stopped matching it by then though!
But all those £5's added up and I had a deposit for my first flat by the time I left University. Most of mt friends spent their cash. A lot are still in rented flats paying £2000 a month (central London). I pay about a third of that on our mortgage.
We brought in 2004 and got 100% mortgage with Northern Rock.
Then they went off the rails and we are stuck with them on an average deal. Cannot realistically move it until i got back to work.
Our mortgage is £1200 for a 4 bedroom terrace in a London borough.
Saved, saved, saved from the minute I started full time work (2002), lived with mum and dad then bought a flat with ex-fiance aged 21. We couldn't have managed it as individuals. Sold flat the next year 2005 when we split up for exactly what we paid for it (despite modernising inc. bathroom). Mortgage was £800 a month so def. much more expensive than renting back then.
Married DH 4 years ago. He already had a house.
DH did it by not moving out until he was 31. He started working aged 15 straight after his exams. Saved hard and bought his first house on his own aged 31 outright in 1999.
There is quite a big age gap between us and personally I think he found it easier to buy. The gap between wages earnt and the cost of a house wasn't so great as when I bought with the ex.
Like you, DH and I spent our twenties living until our peppercorn rent house was sold with a month's notice.
We had no deposit for renting let alone buying, but a
dodgy mortgage broker friend found a way round.
We applied for a cashback mortgage where upon completion the lender sends you a cheque for 5%. We borrowed the 10% deposit - half from parents which we paid back with the cashback, and the other half on 0% credit cards.
We sold the property a year later, clearing the credit cards and making enough for a decent deposit on the next house.
It's not a strategy for the faint hearted though.
Any chance of parents or other family giving you a bit towards the deposit ? If mortgage would be cheaper than rent then you could pay them back from the difference - you could set it up as a monthly direct debit.
Dh and I have always been savers, and never really spent any bonus money or our full salaries. Dh is naturally frugal. I never really wanted to own a house because home ownership hasn't historically ended well in my family. All the saving, meant that we had money for the deposit. Dh then got a sizeable inheritence so it meant we didn't have to get a starter home and bought a family home. I have a very healthy respect for mortgages and the real possibility of ending up homeless if things go wrong because you take stupid risks. Despite what I have now, I would have been okay with never owning if it meant it was the safer option.
Another one here that just bought lucky. We saved, saved, saved when we were students to pay for our wedding. Rented an old farm cottage from the farmer we knew but lived hand to mouth. Luckily, we didn't spend all of our £4k we'd saved on our wedding so had enough left to put down 5% against our first house. It cost us £37k in 2001.
We sold up 4 years later, making £14k profit, which we ploughed into buying a new build in the area we really wanted to live. It cost us £115k in 2004, so before all the prices went utterly bonkers. We've overpaid as much as we can, even managing to do so when I became a SAHM. We've just done up the kitchen/boiler, and are about to build an extension with the equity we've built up - the house is now worth over £200k. Couldn't afford to move though as realistically, we could only afford a similar sized house so what's the point? Adding an extension is the ideal solution for us.
Can't see how anyone does it these days.......we've always went with what monthly cost we could afford rather than the silly 5x salary we were offered back in 2004.......we'd be looking at a 2 bed flat for the same cost now rather than the 3 bed/3 bath/soon to be extended detached house we have now!!
I feel like I'll only put a downer on things, but do remember that you don't just need the deposit, you also need money for solicitors and fees and surveys.
I have put the numbers into a mortgage calculator and if we were to buy the house we are currently renting we would pay about 30% more on the mortgage than we currently do in rent. (that is assuming 10% deposit, 5% interest, 25yr term, repayment mortgage)
Not only did I save every penny but I lived in a crap area in a bed sit for years to get my foot on the ladder. It was worth it now though.
Our parents helped us with the deposit for our first house. We made 10k when we sold it in 2006 (which was tiny compared to what the previous 2 occupants had made out of it) which went towards the deposit on our current house.
6 six years later we'll be lucky if it is worth the same as it was back then. Our replayments are manageable, but the thing i don't understand is that it always costs money to get the mortgage deals and we always get them for 25 years so how does anyone actually pay them off? I feel that ours is going to be stuck at 100k forever. Am I being thick at not understanding this?
Also i keep wondering if renting could actually be better. we have all this stress to buy a home but what happens when you're elderly and you have to sell your home to afford care? We might not have anything to pass on to the kids and then what was the point of all the pain? We live in an ex local authority house and a lot of the elderly here have really good care in their homes provided by the state, would that be possible as a home owner? I don't know. i find it all very confusing and depressing.
Like others, a combination of luck and frugality.
I lived in shared houses when I started work, paid off the money I had borrowed to go backpacking then saved enough for a small deposit and the fees. Bought my first flat in 1996 for £72K, overpaid what I could on the mortgage and sold it about 8 years later for £250K.
OP as someone else has suggested, have you thought of looking for a shared ownership property through a housing association? You would buy a % for example 25% and then pay rent on the remainder (75%). You can increase your % share when you are ready by buying more of the ownership off the HA. Provided you pay the mortgage on your share and the rent on the HA share no one can ask you to move because you are an owner.
Otherwise you are going to either have to accept the fact you are going to live in rented accommodation or reduce your spending where you can.
Some info on shared ownership from one of the big providers in London
I've bought a lovely house.
It has three bedrooms, a nice kitchen and bathroom, a spacious lounge. All the windows have little shutters and there is a nice balcony.
It is also made of wood and about two feet tall and my daughter has a very nice family of wooden dolls in it.
<no help at all to the thread>
Thank you all, it's a very interesting thread.
I get the talk about frugality. We are frugal already or we couldn't pay our rent. Like I said the Main way we can be more frugal is to live in a really cheap crappy house. Difficult to do with two wee children, feel bad that they'll have no space, no garden and will go to a bad school. If only there was a way to rent that was stable, and that you had some control over then I wouldn't care.
The place we moved out of yesterday was infested with mice, it had been since we moved in 8 months ago. Nothing we did got rid of them, as the floor boards and skirting boards were in terrible repair. Landlord would not repair or investigate the source of the mice. Eventually we started getting bitten by mites living on the mice, had to endure infected bites and dermatitis on our children, wash or throw away everything we owned and put up with the stress and anxiety. And pay nearly a grand a month for it. And still the landlord wouldn't repair the place. We had no choice but to move. Horrible.
Yes looking at social housing and shared equity schemes, thanks. No family with money to lend sadly. Wish I did!
I bought my first place four years ago with shared equity. Couldn't have saved enough for deposit otherwise...
Lived frugally for years to afford mortgage. Sold flat, made enough from mortgage payments and increase in value to out a deposit on a house down.
Look at National Trust lettings and if you do rent again, go through an agency and get a deal for a long-term let. The house we moved out of was then rented to a retired couple who, in return for signing up to live there on a long-term lease, were given permission to paint the walls, do alterations and got a great deal on their rent.
Also, if you are with an agency they have a greater obligation to fulfil the terms of the contract, which includes maintenance and repairs.
Got a highly paid graduate job and bought straight out of Uni (first year of employment). Put down a deposit I had saved. Have since bought and sold a couple of times after meeting dh. We've been lucky that prices rose as they did and we were able to cash in on that. We now have a family home that is perfect for us. To summarise it was a combination of hard work and luck that got me on and up the housing ladder. I do realise that the same luck is not there to be had by first time buyers anymore.
The last two places we've rented have been through agencies, as I had had enough of insane private landlords. Thought that an agency would be more professional, and have to enforce standards. But sadly not. They have no power to make a landlord do anything. The last agency I was with said I had two choices, put up with it or hand in notice. I was sending them pictures of the bites on my baby, but all they did was accuse me of wanting to "live in a bubble" and being unrealistic. The tenancy before kept our thousand pound deposit for redecoration. We threatened legal action and got it back eventually. I hate landlors and letting agencies. Never had a good/ sane/ caring one.
Oh ditziness that's awful! Insist on speaking to current/former tenants before moving into a rented place as they'll be the only ones to tell you what the landlord is actually like! That was a lesson I learned the hard way at university but its stood me in brilliant stead ever since.
Luck in our case I think. DH bought first flat in 1986 for £52K with a small deposit, we sold it for £90K in 1987 when we married and moved to a flat we had both chosen. We then did lose money on the second flat when we traded up to a house in 1989. That went into negative equity for a while and we ended up selling it for less than we paid to trade up. Our current house has doubled in value to around £500K and thanks to the hard work of DH and a good business deal 6 years ago we cleared the mortgage and own it outright.
Anything I inherit from my family is going straight into deposits for the kids as there is NO WAY they will be able to save enough for for a deposit for ahouse down here in the SE without some help.
Sounds like you need to make friends with CAB if you are ever in that switch again.
That is terrible.
We've rented 4 places together and one on my own before I met dh. None of them were very bad. We had one or two issues but nothing like what you have experienced dinky. That is VERY bad luck and it's little wonder you've been put off. There are groups that are currently lobbying the government for more rights for tenants. Because less people are able to get mortgages, the rental market is buoyant and this has resulted in unscrupulous landlords taking advantage. The government should do something to safeguard renters but currently there is nothing in place as the law favours the landlord it seems.
The National Trust have a good reputation as landlords, perhaps see if there is a property to rent nearby?
Worked like a crazy person, besides my main job had an evening job and weekend work (despite unemployment being over 10%). Saved hard for the big deposit and savings record needed to get a mortgage in those days. Lived in shared accommodation. No holidays, no car, mended clothes, shopped in charity shops.
Didn't have children until I had my own (OK, the bank's) roof over my head and was in a formally committed relationship (marriage!).
I had an angel on my shoulder to get my house. Saw ad in paper for a reposession at £15,000. Booked appointment to see it, had first refusal, loved it. Secured it with a £750 deposit and mortgage is currently £88 per month. This was in 1997.
I would NEVER be able to buy a house now. I count myself lucky every bloody day.
Kaytola, that is a a fab story, I loved it! Would be great if more people could have luck like that.
We bought a 1 bed flat and there is me, DH and 2 DD's. Me and DH slept in the living room for the 1st few years, then we extended it to a 2 bed flat and we will convert the loft next year so we have a decent amount of storage. Bought in 2008 for £100k with a 3% deposit
Now the thing is it really ISN'T 'you pay a grand and get an ok house and you pay less and you have to live in HELL'.
I live in outer London, it's about half an hour on the bus and train from my house into central. My area is lovely. The road I'm on is lovely. I live in a 2 double bed maisonette with garden and big lounge and kitchen/diner, the people who used to live here had 2 children and I'm here on my own. I've just had a look on RightMove and there's lots of similar flats that are on for under £1000, and we're talking PROPER commuter belt here- if you moved further away from commuter central it would be cheaper and still nice!
I bought my flat in 2009, as a single person, yes I had to save the £30k deposit, my flat cost me £175k and I didn't have inheritance or anything like that. How I did it was I saved. I never stopped living like a student. I continued to think as if everything was an extravagance, and I was able to buy this place.
Like a lot of others on this thread we bought a new-build 2 up/2 down in 1983 with a 10% deposit we had saved up while we were engaged and both living with our parents, and earning only £3k each.
Our house was on a bland estate with no facilities - certainly not what I'd have picked had we actually had a choice. Our peers were travelling and partying. We spent our 20s having babies. (seemed like a good idea at the time).
We moved into our second house 2 years later, and increased the mortgage. Sadly we had a NFH next door and a very stressful few years. After 12 years there and 4 babies we were falling over each-other and moved again to a slightly bigger place. Still not able to quite stretch to the sort of house we actually wanted.
12 years later we had to relocate for work, so now we are at the time of life where we should be mortgage free and enjoying ourselves we have a huge mortgage and loads of debt. And an unplanned 5 yo. And we are living in a smaller house in a shitty area, and our DD goes to the crap school. Not what we had in mind at all, since we have moved from the "nice" area of our previous town next door to the oversubscribed school she'd have been guaranteed a place at.
But you can't always control your circumstances. You just have to make the best of it.
I think a lot of it has to do with your frame of mind when your income increases.
I have lots of friends and a acquaintances who earned very well young, and they got into the habit of spending a lot on clothes, going out, latest gadgets, flash weekends away etc etc. They still do that even though they now have DCs and all the associated expenses.
DH and I couldn't afford that stuff when we first met, and so our expectations of day to day expenditure have stayed fairly static over the years we have been together. Now we are totally focused on paying off the mortgage, saving for the future. Our income has increased but we are not of a mind to spend it, whereas even 5 years ago I think we would have been.
OP - have you looked at renting from an (aristocratic) estate? Friends of mine have done this and the standard of property and maintenance is fantastic. I believe they also have the right to stay there for as long as they want.
DH inherited in his 20s; the terms of the Will were that he was to use the money to buy a flat, otherwise I'm sure he wouldn't have.
It helped that 30 years ago property was a more sensible price.
When we sold the flat, my mum sold hers too, and we all moved from London to the south west. That helped, too. We'd never have got a house with a garden otherwise.
I really resent the fact that, to have any chance of buying, I will have to live like an utter pauper. I work hard and earn a decent salary; I feel I should be able to have a reasonable standard of living AND the possibility of owning my own home before I'm 49. The system is shagged.
We're renting - DP was made redundant last year & is now self-employed. No bank will give us a mortgage, despite having a 6-figure deposit.
Our rent is 1K a month - lower than the going rate for the area - and lower than a mortgage would have been. We rent a lovely 4 bed house in a good area, where the schools are excellent. We could never afford to buy the house we live in.
Next year, we are hoping to buy - provided DP can generate enough work to justify being made permanent instead of consultancy-self/employment.,
Yes the system is shagged . I agree.
We got a 100% mortgage in 2007. Northern Rock.
I expect most people who bought after just having saved from salary for a deposit did it a while ago or live somewhere other than London?
Given the sky high rents people pay and just how much you need for a deposit, it must be so hard for people trying to save now.
Downsized my living expectations and rented a studio flat for a year (living on my own). Ghastly upstairs neighbours who would fight to the point of the police being called one week and the squeeky bedsprings and
lots of faking it other noises the next.
Worked a part time restaurant job one evening and one weekend day per week (mind you ex-bf worked there too) after finishing the office job.
Charity shop clothes. Bought a complicated cross stitch pattern which cost a bit but took all year and more to do. Walked to job1 instead of jumping on a bus.
Saved up the deposit for a modest 2 bedroom terraced house that took years to redecorate, but was cheaper because of the decorative naffness (had been student accom before).
Bought our house 2.5 years ago, it was a repossession so we got it for 10k under the low asking price.
Was £17k deposit
Mortgage is now £200
I lived with my parents till I was in my mid 20s so never gave away money to renting. I have a crappy minimum wage job and work 3 days a week, life is good!
Take the other posters advice on how to save money for as much of the deposit as you can.
In terms of how we afforded a deposit for a house: we delayed having a family and rented a 1-bedroom flat for 5 years, much to the chagrin of our family and friends who thought we were crazy not to buy on a 100% interest-only Northern Rock deal. DH also set up a consultancy to earn more money so effectively had 2 jobs for a while. In the end, it was a waste of time because we moved abroad anyway and the rent doesn't even cover the mortgage!
I hate property - it has been the bane of my life, either renting or owning or letting it out. If renting wasn't so dire and didn't expose you to the whims of a private individual's decision on extending or terminating a lease, I'd rent long-term and just have savings and shares and then buy a place for cash in my old age.
It's such a shit situation.
We bought our flat in 2002 when i was 18 and DH was 20. 2 years ago we moved in with my parents to save a deposit for the house we're in now (thankfully bought very cheap because sellers were desperate for the cash)
We kept the flat so the DC's don't have to struggle.
I wasn't able to buy my first flat until I was 30, and bought it as a single person. 10% deposit then was only £5k though and I had a "cashback" mortgage giving me £1k back after purchase from the mortgage company to buy a bed etc...
It is so very much harder to do now. My first flat cost twice my annual salary and the same one bed flat now would be more than 4 times my salary.
My flat needed work, and I was actually never able to afford to do the work! So I guess I was prepared to live in a place that was far from perfect. My house now is far from perfect too and also has needed work since I moved in that I have not been able to afford to do! I think it helps if you are not a perfectionist. After 17 years we are only now in a situation to start saving for the work that badly needs doing, and this despite having 2 salaries coming in and only one child. It's tough out there, particularly if you live in a place with high cost property.
Saved and put down a 5% deposit. We rented for 5 years while saving though.
After university I only looked for work in fairly affordable areas, and simply accepted that I would never be able to afford to live where I was raised (south east)
Rented cheaply for several years, saved like mad. Met dh who had followed a similar route. Managed to buy after several more years. Continued working while having 2 kids, even when childcare costs were crippling because we were in it for the long game. We went through a really rocky time financially while paying full childcare, but now the kids are at school we feel a lot better off.
Hasn't been easy.
Bought our first flat as sitting tenants for £2400, sold it 7 years later for £7500. Next house was £16400 and sold it for £45000. We then bought our forever house for £67750 and now it is worth around £500000. At the end of the day it's only a number. I also saved really hard for years and bought another for £14400 and it's worth around about £100000.
Lived with DH-to be in cheap and crappy rented digs and economised like mad. Then when we realised the housing market was rising faster than we would ever be able to save, we wrote ourselves one of those credit card cheques they used to issue for the £7k we needed to get a crappy one bed flat but with bags of potential. This was in 2003.
Did the work and sold it at a ridiculous profit a year later, which gave us the cash to buy a bigger place. Made a couple of not so smart moves since (we tend to buy with heart, not head) to inch ourselves rung by rung up the ladder. Now just bought our house for the next 10 years, but have gone back to a 25 year mortgage to make the repayments affordable, and intend to overpay (which is my top tip for saving money as a home owner in the long run)
I could cry when I think about how much people have to save to get on the property ladder now. We have benefitted from it ourselves, but the current set up is just so wrong. Sadly, too many
voters people have too much invested in the current property market for the wholesale change we surely need
100% mortgage in 1990 sold that property at a whole £7000 profit in 2000
In 1998 I was made redundant and we had enough to put down a deposit ona bungalow, kept the negative equity flat in my name and rented it til sold in 2000
Made £120 000 profit on bungalow ( paid £62 000 in 1999 and sold for £182 000 in 2004 )
Now got comfortable equity of about that amount on forever home (til dd leaves anyway)
Mortgage on 4 bed detached in village in se Kent is £460 rent would be @ £1200
Bought a flat late 90s with a 5% deposit just before prices rocketed on my own Sold in 2003 for over double the price I paid but by then I had DH as well so 2 salaries.
No Rosebud05, I bought in London and lived in London (admittedly with parents) while I saved. However the money I saved in rent I paid debts with.
I fail to see how 2 people earning reasonable salaries with no children think that they 'can't' save a deposit even living in London. You CAN. You just don't want to give up some of the nice things.
With children it's different.
However I'd just like to point out that while saving up for my flat I also bought a (lovely) car, a laptop, and within reason, I went out and did nice things. I didn't sit at home having a rubbish life. If I had, I'd have saved more :P
Um, I'm a home owner with 2 children fortunate enough to have bought before the property market got completely out of hand.
Living at home is obviously a financial advantage in terms of saving.
We have never been given money BUT I lived rent free with my parents for 6 months and saved every penny for a deposit. Finally bought in 2000 and put down a 5% deposit.
I never rented. Parents loaned me four grand at end of nineties to buy a £40,000 flat. Sold two years later at £58,000 and bought at £82,000 semi. Sold three years later at £158,000 and bought at £240,000 detached house. So we moved fast - flat to detached in five years. But we were also lucky with market and mum loan. I don't plan to move again EVER!
Rosebud we were living in London and bought in Zone 1 London. It was a mission, admittedly, but it did pay off.
First flat £38,000, sold year later for £95,000
Bought 2 places to let out £80,000, sold on 18months later for £170,000
& £40,000, sold 6yrs later for £100,000
Bought 3rd place £90,000 to live in, sold 2 yrs on for £240,000
Built new home for £180,000
So that first year of saving one income, (while renting in zone 4 london) did pay off.
Half this thread are saying that they can't buy and are feel exasperated with the ridiculous housing market...
The other half are explaining exactly why the others can't buy, with their stories of huge profit for doing, essentially, bugger all.
Fatfaced - yes that struck me too.
The housing system is fucked up.
"I expect most people who bought after just having saved from salary for a deposit did it a while ago or live somewhere other than London?
Given the sky high rents people pay and just how much you need for a deposit, it must be so hard for people trying to save now."
We lived in London whilst saving - we earned vastly more working there than we do here (NW). We rented at the same time, our rent was £1300pcm. This was during 2007/09. We could have afforded to buy in London, but we wanted to return home to be closer to family before we had DD so we bought here. Our income took a massive nosedive as soon as we left the capital, we were much richer in London than we are now!
FatFaced that's what people were saying when I first bought, and 20yrs before that. And no doubt they'll be saying it about the current crop of buyers in another 20yrs.
DH & I bought our first flat in 1996 for 37k. My parents gifted us the 5% deposit & we got a mortgage with the princely repayment of £141 per month.
Sorry but we also bought straight from Uni in 97. Both made redundant soon after so moved to a smaller rented place, Rented ours out. Saved and scrimped so we could buy again cos we wanted to keep the original house (great tennant who wanted to stay!). We managed to buy a small place again before the Market went mental - Luck and timing is all I can say x Keep your chin up X
That's kind of the point though. What were they saying about the people priced out of the market twenty years ago and today?
It's like when the media say "it's good news from the housing market" meaning the prices have gone up, whereas they don't say "good news from the oil market" when petrol prices go up.
Downsize, as others have suggested.
Relocate to somewhere where property is cheaper to rent while you're saving and to buy when you've got your deposit.
Not sure about the rules on renting then subletting a room - you are allowed to keep up to £4250 p.a. tax free under the government's Rent a Room scheme:
What jobs do you and your OH do? Would you be able to find work that offers free accommodation? Jobs like this do exist, look on www.gumtree.co.uk.
Himalaya - same as is said now, property goes in 20 year cycles.
There are "good news for buyers" stories, but no you would not see a "good news for oil companies" in a general newspaper, but you would in a oil companies publication. It's just about tapping into readers.
But 20 years ago, if people were priced out of the market, they could usually get social housing - that's so much harder now - and the amount they'd need to save for a deposit had a saner relation to average salaries.
Is anyone seriously saying that it's as easy to get on to the property ladder now with no financial assistance as it was in 1982? Or 1992 for that matter?
There's also the fact that a lot of people on here are explaining how they have two properties. Having scrimped to get the deposit together for one property, the thought of owning multiple properties is as much a fantasy as owning a tropical island.
Well I can tell you how I've monumentally fucked up any chance of ever buying.... When I got my first job in 1999 DP and I decided to rent instead of buy. I'm an idiot. Then I got made redundant, went back to university to change career (which I couldn't have done if I'd bought admittedly). When i got my current job we then made another fatal decision which was to rent a very big house due to the location and because it accepted dogs - £1500 PCM (N London).
Of course I had DS, childcare costs mean that rent was unrealistic and we're currently living with my parents until we decide WTF to do with ourselves
dsyfunctionalme clearly forgets that this was a credit felled boom - the UK housing market has been the victim of a willingness by politicians and banks to flood the country in debt, and have convinced the public through the media that they'll miss the boat, that property is a one way bet and price rises are a great thing. Also by making sure people don't understand pensions, they have created the horrendous buy to let boom, which allows those who can leverage up with more borrowed money to further increase their exposure to the property market at the expense of others who want to save prudently for a large deposit.
one way or another, this house of cards WILL fall.
op - I have more than enough money to buy a house outright. I have scrimped and saved for years - but as this thread shows, letting people chuck borrowed money Willy nilly at a market distorts it. the market does not currently offer value. with wage inflation and no further house price inflation (one route) it may begin to at the expense of my deposit (though I can protect that through investing elsewhere). if the market collapses, we will see fair value eventually. this thread contains hundreds of examples demonstrating the unsustainabilty of the system. Stop worrying and let the situation unravel.
Cheryl do you really think it will all unravel when there is so little social housing being built? Demand for homes is exceeding supply and the state is not stepping in to plug the gap and realistically this Government is not likely to embark on a programme of large scale social housing construction.
Yes, I think the normal market will unravel. It might be slowly, because of the intervention from government (restricting building) and BOE (reducing interest rates), but as credit gets tighter and tighter, the downwards pressure on pricing will increase. All this combined with a reduced ability for FTB's to actually save much at all (thanks to low interest rates reducing compound effects of anything they do put away and the result of price inflation in the basic cost of living) - where can it possibly end?
Estate agents - who seem to have been incredibly slow to realize the importance of actually having transactions to the bottom line of their business, rather than massaging the ego's of sellers by giving them silly valuations in the hope someone with more money than sense actually buys it seem to finally be getting the message too.
Either way, I'm sitting out. If the rest of the country want's to behave like this and hand over most of their income to banks, so be it.
Is credit going to tighten much further, if so why? The Bank of England figures suggest that mortgage lending been fairly stable for the last couple of years since the financial crisis.
The simple fact that atm you need a large deposit to buy a house is what makes it so hard to get on the property ladder.
Ten years ago, getting a 5% deposit meant my parents had to give me money - if I'd needed 30 or 40%, forget it.
It's worth pointing out that there things which many people have done on this thread to save a deposit/afford a house - moved in with parents/relatives, moved from one part of the country to another to find cheaper houses (which means changing jobs, doesn't it), lived in very shitty areas so they could pay a low rent and save, taken on extra work or a part time job on top of their day job -
These are all MUCH MUCH easier if you don't have children. Young professionals are a much more moveable feast than parents and children.
I also agree with other posters that if there was a bigger pool of social housing in the UK, things would be less pressured in terms of getting on the property ladder. But there isn't - it's got worse over the last 20 years, not better.
Because western nations are in a debt crisis the scale of which is absolutely mindboggling. The financial crisis is still in it's infancy. The problems have been further exacerbated by not taking proper action and cutting all unnecessary spending/or even defaulting 5 years ago. I'll be hammered for saying this but all the media talk about cuts - there are none. We are still spending more than we are taking in - the media makes people think we are cutting debt when we're still running a deficit. They are plate spinning and putting sticking plasters over a fatal wound. All while pouring oil on a fire using quantitative easing.
I simply take heart that I have decent health (touch wood) and enjoy the simple things in life for now, and have faith that one day the prudent shall inherit the earth!
Cheryl people have been sitting back from the housing market for 10 years predicting a huge crash, and it hasn't happened yet.
Prices have levelled a lot since 2007, but employment is steady at the moment so there is no reason why prices should drop significantly.
I'm happy to wait indefinitely. My assets are liquid, they are diversified and I'm well positioned for whatever eventuality. Renting is no hardship either if you don't accumulate tons of consumer crap and have a good relationship with your landlord.
Simply put, banking on low interest rates and further price inflation doesn't sound pleasant.
And as I've said before alibaba - wage inflation is a definite possibility that the powers that be may use as a get out clause to maintain the nominal level of house prices -which is all people seem to care about. It's just got a lot of sour side effects - devaluation of sterling and the associated inported inflation being one of them
I think it is a big mistake to think that all homeowners are clinging on by the skin of their teeth barely affording the mortgage. I am not banking on low rates or further price inflation.
Alterations to planning law make it easier for people to adapt their homes to growing families, removing the need to move. The housing landscape is very different to 5 years ago IMO.
This is true, plenty of people aren't struggling. But like any market, prices are set at the margin. Currently, the transaction levels are low...we'll see what happens down the line. You have your position, I have mine!
I bought my first flat in 1985. It was £35k and I had a 3x salary mortgage and a small inheritance for the rest. There's a similar flat in the same block on the market for £325k now. Admittedly the area has gone from being a desolate post-industrial wasteland to one of the trendiest parts of London, but I still don't regret moving out over 20 years ago.
Even allowing for inflation on the inheritance (there are some websites that can do this), a "back of the envelope" calculation shows I'd need about a 9x mortgage to be able to buy the same flat on a graduate's salary now.
Frankly, it seems an insane amount of money to pay for an adequate but not particularly exciting one-bed flat. But obviously someone can and will, so that's what they cost.
100% mortgage for first flat - those were the days
The hit with negative equity so had to save up £18k to move from 1 bed flat to 3 bed house. Saved my salary for a year and live off one salary.
Bank of Mum and Dad, living at home while saving hard, buying before we had children.
We bought a 2 up 2 down in studentsville Manchester that had no GCH, uPVC windows, proper kitchen etc for £71k in 2003. We had a 10k deposit (most of that was dh's savings before he met me) We sold it for over double that in 2007 (we'd done it up nicely). We sold it within an hour of putting a handmade 'For Sale' sign up due to its location. We had a good deposit to put down on a nice 3 bed semi with a garden. I felt smug when showing dh's parents around as they disapproved of our first house choice and refused to "help" dh in the same way they had with their other kids. Had it not been for that first house there is no way we could have afforded the house we live in now. Our mortgage is under £300 a month. My friend who lives across the road rents her brothers house at "Mates Rates" for £800 a month and that just covers the mortgage.
Bought my place, a small one bedroom flat about 12 months before the global financial crisis. I bought it with savings and some inheritance after one of my parents died, which gave me about a decent deposit - when I asked the real estate guy how people could afford to buy for the first time in that climate he said, "they're either bankers or someone has died".
As an additional point to that, when I went to the bank to get a mortgage, they offered me one for nearly 3 times the one I took - they said on my wages and with interest rates the way they were (I think about 3% or 4% at the time) I could easily afford to borrow more than I wanted and why didn't I want a bigger house? Now I've never been known for being financially astute, but even I could work out that if interest rates went up (or I lost my job) then I would be in big trouble. As it was, I took a much smaller amount, interest rates went up to about 7% for a while and I was very happy living there for three years.
Combination of bank of Mum and Dad, buying 3 years ago when prices not too crazy, living 100s of miles from London, both having well paid jobs and not having any DCs yet. Not surprised that many people don't manage it, that's a pretty lucky combination.
Bought a one bedroom flat as soon as I could get a mortgage ie when got first job and quite young and gradually worked up to a bigger house. Had no deposit so got a "car loan" from a bank to fund it.
DH & I probably got one of the last few 100% mortgages, in 2007. Luckily, our house is valued at what it was when we bought it and we've been denting the mortgage. It was our first house and I'm so grateful that we were able to get our mortgage then.
Now we just need a deposit for a bigger house lol.
Ditz, just want to say I really sympathise with your renting troubles. I moved to London a few months back after years of happy renting in the North. In three months here, I have encountered so many crooks, and had to move three times. The illegal sublets, the aggressive insistence on cash, the refusal to give tenancy agreements, rent books or receipts, the hanging on to deposits for the most arbitrary (read: made up) of reasons. I'm nearly 40, I'm highly qualified and I work full-time, but I'm stuck in the fixed-term contract trap so can't buy. It really gets you down sometimes.
Sorry, not very constructive! Just wanted to tell you that you're not alone in your frustration with the dodgy rental market.
This is a really interesting thread. it's all about timing, i.e. the state of the economy/ housing market when you buy and, of course, luck.
DH is 4 years older than me and graduated earlier (I did a compulsory post-grad), so was effectively 6 years ahead of me at a time when the economy is booming. That made a BIG difference. He went to university with a grant (I had £12k of student loans to repay). He graduated into a decent job at a time when a mortgage was 3x his graduate salary and that bought a two bedroom flat in an ok part of town in 1998. I graduated into a very good job with an excellent salary, but house price inflation meant I couldn't afford a 1 bed flat on 4x salary in a similar area. DH 's parents lent him the deposit. My parents were not in a position to help financially.
I remember the property bubble in the 80s as a nurse there was no way I could afford a house so I spent my money on travel and parties
Then the crash came many of my friends were in negative equity, a financial advisor told me to save half my salary for 6 months ( living with my Dad I was able ) and I'd have enough for a deposit. Best advice ever so at 28 I was still single but a home owner - might have been a cheap house but interest rates were high and I did struggle.
The minute I got on the ladder prices started to rise, I'm so grateful to that advisor and my Dad.
DH and I have been together for 11 years and we just saved like mad the last few years and managed to get together a deposit and bought a 2 bed flat. We moved in together pretty early on (6 months), and rented a not so nice flat with cheaper rent. I managed to get into office work from retail so my salary has increased, and DH has steadily been promoted up and got payrises along the way.
It would have been nice to buy a house, but even if the bank had lent us the amount of money we needed for a house, we wouldn't be able to afford the mortgage repayments whilst I'm on maternity leave.
We haven't had any help from our parents, I am a bit envious of those that have had help as I would love some help too I suppose it would have made things that bit quicker. Learning to save has been very useful preparation for having DS anyway, everything happens for a reason.
Lived with parents until we bought together, and set our sights lower than we would ideally have liked and bought in a less desirable (but still safe) area. Where I live, property prices were very low at that time, but on the other hand, so were salaries.
I didn't buy my house. I stole it whilst tbe family were sleeping, brick by brick
Message withdrawn at poster's request.
You asked for any financial tips for moving home. Might be worth finding out what it's going to cost you. This site has a tool that adds up all the different costs: solicitors, removals, surveyors, stamp duty, estate agents etc. http://www.reallymoving.com/moving-cost-calculator
150k present from in-laws. Sorry, not helpful.
All these massive gifts from parents interest me greatly, and I'm sure soon enough will be of massive interest to HMRC too. There are some pretty strict rules on gifts....
If the gifter survives 6 years all tax implications are gone.
I got run over by someone driving on the pavement (never caught!) the compensation became my deposit, so suppose it had some benefit though I'd rather have a whole leg personally.
Lucky with timing here, too.
Newly married, we bought a 2-bed new build flat in Hounslow in 1996. Cost was £68k, but the building company paid a £3000 deposit for us as they were desperate to sell in a flat market, so mortgage was £65k. Sold it for £145,000 in 2002 and moved north, where we bought a 3-bed house with big garden. Enough profit made on the flat to buy without a mortgage. Sorted.
Pure, dumb luck.
Fair point elfycat. I always thought gifts were limited to a 3000 limit per annum to be exempt from IHT, but you're right, you can give away any amount provided you like for 7 years more.
It's one of the options we're thinking of if DDs (nursery age at the moment) want to buy and the situation is like it is now. Make a large cash gift while we have at least 7 years best before date (hopefully). If they're going into a house with a DP there will be something written down that this money is theirs not the partnerships....
Timing seems to be the key.
I seem to be one of the last few folk that got grants to uni, graduated with some debt (not anything like today's yoof, I'm talking a bit of an overdraft and that's it), was able to scrimp whilst house sharin, and then buy a couple of years out of uni... it certainly wasn't easy but after the first couple of years on it, it's been fine. House price inflation and climbing the ladder in terms of salary helped.
I never had help from parents, sure, but if you compare that to my brother (almost 6 years younger than me), his generation is screwed. Really, utterly screwed.
he's made no worse decisions than me, but in terms of salary ratio to "crappy 1 bed flat price", he earns nowhere near enough to buy, his salary is being mostly eaten up by rental costs+bills, and he has student debt (not sure exactly how much) to boot.
So there you go.
Lucky timing on my part, graduating < 2005 / 2006 ish.
It does seem like a bit of a kick in the teeth the I seem to have fallen on my feet, whilst people that are graduating in my degree, and going onto similar jobs as me... well, there's such a huge divide about what you can and can't do.
You live and learn - thanks. This helps my inheritance tax planning no end. And let's hope the situation is not as now when your DD's are ready!
We rented a tiny flat with shared bathroom in a really grotty part of town for 3 years. The rent was low and we saved like mad. We then purchased a small house - lovely house, lovely road, bad area overall. Managed to sell it on for a profit 4 years later and got something bigger. We live hundreds of miles from my family where prices are sky high and actually live in a house/street that others wouldn't go near. For us it was a bit of luck but also a massive amount of compromise.
Bought it 22 years ago when I got my first job, with 105% mortgage (yes!) and 18% interest and a mis-sold endowment from a company that went bust Had no kids for 5 years, no holidays for 10 and no car for 15.
It's all paid off now tho'
Pretended that we only had 1 salary coming in. The other one went into a 'secret' account.... then set a standard of living that enabled us to live off that one salary (but mostly stuff we do anyway - fairly frugal cooks, don't do clothes, holidays are UK cottages, cars go on for ever).
Frankly, I never made the jump up from a PhD student income to a 'proper job' income and so saving the vast majority of my income happened pretty much by itself. I think it would be much harder 'cutting down' than it was never to ramp up spending in the first place.
I found the (free) mortgage brokers London and Country (google them) very helpful on a couple of occasions. I can't say conclusively if they cover the whole of the market and if you pay a broker you should get completely unbiased advice. So I would bypass the banks, try the brokers and let them do some work for you.
Secondly, is it possible to move to a cheaper city? I live 2 hours away from family which, now I have children, is a shame but buying in London would be absolutely impossible which is why I am the only one of 3 siblings on the property ladder. It was a consideration in moving away from London that I would be able to buy more cheaply. Although out of our reach at present, a large 3-4 bed house in a decent area is possible in a few years whereas this would be completely out of the question in London unless DH or I became bankers.
I agree that its easier not to let the spending ramp up rather than to economize. I tend to put the amount I want to save away on pay day and then live on whats left for the month rather than waiting to the end of the month and saving the miniscule amount left.
I saved for five years solidly, my partner worked two jobs for a year (I had 2 jobs for 6 months). Together we got enough for 10% deposit on a flat in London. It was well worth it, as 3 years later, for the same asking price you could not even get a one bedroom flat on the outskirts of London for the price we paid.
bought a house on my own with deposit consisting of money given to me by then bf who cheated on me and felt guilty about it-about ten grand. paid mortgage by living well within means, ie no newspapers, no pointless purchases, kept fit by running outside, charity shops etc, did take in lodger but hated it so decided would be happier skint than less privacy. did work in evenings after work and weekends, baby sitting, dog walking, house sitting (not bar work as unreliable as work demanding and had to work late a lot)
did not have credit card (still dont!) and dont buy anything if you cant afford it. and overpay the mortgage.
i find people plead poverty yet get takeaways, drink heavily, buy books and magazines, coffee from coffeeshops, don't mealplan, don't recycle... must say i always got my hair done properly- i ddn't actually look cheap and i did pay my way- but i didn't drink except water so never was asked to stand rounds. and yes, i did have a social life!
i remember in the 80's wanting to leave home or buy flats to rent out and my parents putting me off as a waste of money and i should stay at home til married. wish i had ignored them, i would probably be v rich by now
I agree its an awful situation and without parents who have cash or the odd bit of inheritance it is impossible. When my mum bangs on about how materialistic our generation is and what they did without, it drives me crazy. They bought their first house at 25, never had to pay university fees for themselves or their kids, enjoyed decent pensions and their generation inevitably capitalised on rising house prices. Single income was normal so none of the angst over needing two jobs to buy a house. My dad was on a graduate trainee scheme and my mum was a nurse, so hardly yuppie material. My husband and I earn very good money but can only afford a flat.
It´s a minor comfort that this bottleneck will widen dramatically in thirty years time when the babyboomers have all dropped off, so hopefully our children will not face the same problems, but it is no comfort right now for those who cant even afford to consider having kids - that to me is the tragedy. So much for flower power peace n love. They really lucked out.
Couldn't have said it better Fergus.
I'd like kids. But mat leave and then nursery fees would mean an end to the £1,000 we have just started saving every month for a deposit. (only at five grand now) And then a bigger place means even less savings...
I'm 30. It's house or kids for us. We'll have kids but in the meantime we'll kid ourselves we can save the 20% deposit we need for somewhere (2 bed flat down my road just went for £350k. )
And, before someone says "move out of London!", our friends, family and careers are here.
Exactly how much do you need to live in London? Because we earn good salaries and apparebtky we can't.
Fergus I think you've hit the nail on the head
I know I'm supposed to say this (sigh) BUT my parents generation had it much much easier
Just like I have it much easier because I graduated/bought a house 7 or 8 years before my brother
The chasm between those three generations is huge - my parents lived off my dad's wages (just!), mum sahm.
Then I graduated, could just - just -afford to get a place of my own within a couple of years... if I'd left it 5 or 6 years later, the house price ratios and student debt would have been the 2 nails in the coffin for my plans.
That's it, really - but the real kicker is that my parents go on and on about their pensions being devalued! Which I know they have been. BUt they do forget they have had many many things that my brother's generation will never have.
It's like they don't make the connection between the legacy that they left and the generations coming after them.
I know DP and I can't afford to live here (London). We were earning appx 65k combined. Since having DS I've gone part time and most of what's left of my income goes on childcare. And we can't move out as cant currently leave our jobs and can't afford to commute in. That's why we're squeezed into one room at my parents' house.
I married a man that came with a house.
My dad advanced my youngest brother £50k of his future inheritance. Therefore when my dad passes away my youngest brother will get £50k less. This was the best way to give him the cash according to the solicitor. No way he and his girlfriend could of done it otherwise.
ditziness which area are you in? sorry if you've already said
OK, I can appreciate some people don't want to move out of London and I wouldn't dream of telling someone to do so, but could I just point out that a 2 bed room house down the road from me is going for £45,000. That's with a garden. I know your career, family and friends are nearby - but my DH lives 350 miles from his family and friends. People's jobs take them all over. Absolutely not my business, but cities are very cosmopolitan. Try Leeds, or Sheffield, Manchester, etc. and you may find you are able to buy. And you can visit family and friends. Being squeezed into one room of your parents house must be terribly difficult and stressful. Good luck anyway!
We only managed it (in outer London) because of advances on inheritances. DP had a granny who saved and saved ( I am still not sure quite how they saved so much given their working-class occupations.....) and his parents gave him a tidy figure after she died.
My parents did likewise when my lovely, single, frugal, childless uncle died quite young.
About a month before our windfall we had been seriously considering moving to my home town (in the north) and DP undertaking a 4 hour round-trip commute 4 days out of 5. Thank heavenly GOD we didn't have to do that in the end.
We had a 50% deposit in the end, but it is still tight meeting our mortgage on one salary (or two minus childcare deductions). We are not exactly living a lavish lifestyle altho we do go abroad for holidays and eat out once every fortnight or so.
I salute those of you living in one room in your parents' houses. If that were me I would have bailed out to another city far, far away from the south-east long ago. The time when you have young kids is fantastic for making new friends and a perfect time to move (before school starts getting in the way)
What's amazing is how hard it is even when you do have the generosity of parents etc. Yes, my ILs' incredibly generous 'advance' means we have a nice (though by no means flashy) house with a small mortgage, and that I can stay at home with the kids, for the moment at least (one is still pre-school). But we still find things pretty tight on one income (limited holidays, have to think very carefully before accepting an invitation for a night out etc), and that's after we both worked and saved bloody hard for ten years pre kids. God knows how we'd be managing if it weren't for the money we were given.
We had 50% shared ownership 2 bed flat through a housing association back in 1989. Shortly after we moved in the housing market collapsed. We were in negative equity for 13 years.
Were lucky that when we had to move (I'd had a third baby) that flats were in high demand in our area, and selling like hotcakes...however we had to move 250 miles away to buy a property within our means, because we still only had a 50% share. So in 2003 we bought a £45,000 house in East Yorkshire...where we still are to this day.(But happier, even though we still have to struggle for money.)
I really don't recommend shared ownership. Especially as the rent part has a habit of going up every year, as well as the chances that your mortgage will as well. It was actually a nightmare.
My parents gave us 30k in 2001 as a gift. We had saved the rest over 10 years by living very stingily while renting (between the ages of 20 and 30). We bought a decent, but not amazing, house with no mortage.
I am very grateful to my parents. They never mention the amount of ££ they gave me (and my brother and sister) as a gift. And they gave us (and my brother and sister) so much more than just money over all these years. Yes, I know I'm lucky (no boasting, just grateful).
Dh had a flat to remortage for £35k deposit, we both had good salaries and the mortgage people loved us for those qualities. We didn't overstretch ourselves, bought something (a 2 bed railway cottage) well within our limits, in 2004, which we thought had good resale value (nice area, garden, good transport). We then sold that two years later for a decent price and bought a larger house in a decent, but not very popular area nearby. Since then, the area has gentrified massively and had we been buying now, we wouldn't be able to afford our house - two kids, part time salary etc. I thank our luck and dh's property sense every day. Life in London would be unbearable without my little oasis (even when it's filled with plastic tat and splattered with food).
90% mortgage on 100k house in 1999. Joint income of 60k back then at the ages of 27 & 30 respectively so a rather conservative purchase in comparison to others at the time! We saved the deposit ourselves - life before dc so lots of disposable income. Now living in our 4th home worth approx 750k (recently completed major renovation & extension) with 200k mtg serviced by 6 figure household income. Our pattern is one of not overextending ourselves and overpaying but mostly by living modestly relative to our income.
DH and I managed to buy our first home in London this year without any help from parents or inheritance. We're in our early 30s. He's on a good salary, but more importantly, he's saved over half of his income since graduating, meaning he had to flatshare into his 30s, not spend loads on gadgets, not run a car etc. So he'd raised a 35% deposit. I am on a much lower salary than him so I would never be able to save as much as he has, and I can't flatshare as I have a dd.
My parents are on a much lower salary than DH and would never be able to afford to give/lend us any money if we needed to. If I'd married someone on a much lower salary, we'd probably have had to leave London, or at least move further to the outskirts. (And I have to admit that would probably have been a dealbreaker for a relationship for me...)
I bought my first house in 2001 in Bedfordshire. I'm from there, and worked in London anyway, so commuted.
I managed to save for a deposit by living at home with my parents, and working weekends to avoid going out spending money.
It worked with me, as sold my house in 2007 for more than twice what I paid for it. Moved in with my dh and reduced that mortgage considerably. Don't have any debts apart from that small mortgage now.
We've just bought a house. DH took voluntary redundancy a couple of years ago which gave us enough for 10% deposit on a modestly priced house, way way out in the suburbs of Sydney.
Mortgage payments are higher than our rent was, but not too much because we borrowed a lot less than we could have.
We lived a pretty hedonistic lifestyle pre-dc, and chose (I'm sure many would say unwisely) to spend our income travelling and partying instead of saving for the future.
We have two dc now and I'm a sahm. I don't think we would ever have managed to save a deposit without the redundancy. Consequently we're old for first home buyers (late 30's/early 40's).
I know DH regrets not buying in the 90's when he was able to though.
Borrowed £9k from PIL in 2006 for a 5% deposit to buy our first 1 bedroom London flat (year after we married).
Sold it 17 months later after it had made a 30%(!) return! I got a very well paid job (almost doubled salary to £60k). DH also promoted but not quite as much! Paid back PIL their loan, and used profit from flat and our new salaries for larger income multiples to upgrade to 3 bedroom house (in London, but not in a particularly good area). The market then crashed about 2 months later and it's taken about 5 years to get the house back up to the value we paid for it. However we have been over-paying the mortgage for those 5 years so we have about £100k equity in it now.
2.5 years ago we went abroad and have been renting it ever since, but soon we will have to return to it. It seemed like a palace before we left, but we only had one child and one dog when we left, now we have 3 children and 2 dogs! And one income as I stopped working to have the kids... eeek, not sure when we will next be able to step up the ladder...
Really little DCs dont care about living in a nice big house in a nice area. That is not for their benefit but yours.
The clear message from this thread is that to give your DCs the security they needyou need to sacrifice space, condition and area. As long as it is safe and not damp/infested they will be happy.
I bought my first flat within 6 months of getting my first graduate job. I used my graduate overdraft to pay the 5% deposit. I could see house prices speeding away from me and that if I hadnt acted fast I would lose my only chance. Friends who wanted to stay in their private lets in posh areas and holiday and party missed the boat and now have housing costs double mine.
But my first flat was so bad that some friends wouldnt even come visit. It was in a 'bad' inner city area and was tiny with artex everywhere, no heating at all, single glazing, no window in bathroom, non white bathroom suite, 20 year old kitchen, none of which I could afford to remedy. But it was so incredibly better then having a private landlord.
We have always had a direct debit that comes out of our account straight after payday and goes into a savings account - that way we can't spend it.
We did also manage to get a 100% mortgage (pre financial crisis, about 5yrs ago). Though we're not in negative equity it means we probably can't afford to move for another 5 years, but we still think it's better than paying someone else's mortgage...
In the mid 1980's, my DH and I saved £3,000 for a deposit (after renting for two years) and got an almost 100% mortgage buying a small terrace for £24,000. It needed some doing up, but when we sold it, we got £60,000, so after paying back the bank, we came out with nearly £17,000 each.
I put mine (we divorced), as a deposit on a flat, taking £2,000 for repairs, furniture etc. but the market plumetted in 1990 and I got out of the property before it went negative and lost all my £15,000 deposit , but at least I didn't owe the bank.
Rented for years, in what I would call very basic (partner now calls fridges!) properties, saved up again. Met someone who had also been saving, never bought and had rented. Pooled resources to buy a very rundown property, the plan to live in it and do it up. Suddenly his parents both died, which meant we suddenly had a little money to finish the house, we did however put off having children because we couldn't afford it, so we have an 8 year old and all our friends have kids going to Uni!!! It is now worth over £600,000. However, I would give it all up if I thought we could have his parents back.
We are lucky enough to have rich relatives who lent us 4 grand for the deposit. We had 3k saved up, my grandma lent us 3k, ILs lent us 1k. Our mortgage is £350pm.
We are in London.
DH bought his first property jointly with his brother in 2002 - DH was just out of uni, BIL was still at uni. Obviously, the deposit was money from their parents. DH had a city job and used salary to (over)pay his share of mortgage, and had a flatmate who paid BIL's share of mortgage. (Lucky BIL!)
I bought my first property in 2005, 2 years post uni. Had a city job, and I lived with parents and lived pretty frugally for those 2 years (combination of silly hours at work and natural frugality!), so was able to save a good deposit.
So, parental contribution has played a large part, either directly in my DH's case or in the form of free accommodation in my case. The other large factor is having a City salary and frugal lifestyle (= ability to save a lot).
I'm afraid my honest answer is that I married someone with money. Although that's not the reason I married him, obviously. I'd never have afforded it by myself.
Saved a lot - 1/3 of salary for years 5 +, had family money mixture of gifts and inheritance. Also bought in a cheaper area - spent less on house here than friends spent on one bed flat in London - and a house that need a lot of work - not sure that was a good idea in end as its cost more and taken longer than we first thought.
We were both over 30 as well and both avoided tuition fees. We couldn't wait any longer as DC were getting to school age. We couldn't wait to have them as I was warned there may be issues conceiving - which turned out to be wrong but we didn't wish to take the risk.
We had 40 K in the end and the first few years after buying were bloody hard financially still.
We are now stuck still doing a house up which has gone down in in value which we are still having to spend money on to get a decent value to sell it. We are also worried about how we'll afford the next house where DH now works which we be a lot smaller and cost a lot more. It hasn't stopped being bloody hard yet.
ditziness - if you are in London I suggest you start looking at jobs outside for one or other of you and think about the career impact. The wages would be less but the cost of living and cost of accommodation might well mean you'd be much better of financially. TBH most people I know who did stay and have DC in London end up moving much further out then facing silly commute times or moving the jobs to other cities- for house sizes and school reasons. Not sure how common that is though.
We inherited 15k from DMIL when she died. It was the only way we could have ever afforded to buy. It makes me very sad that in order for us to give our DD a stable home she had to never meet her grandmother. But at the same time, I know she'd be so happy that she was able to help us out like that. It's a fucked up world where two professionals in their late 20s who've been saving for years and years still couldn't buy a house without parental help.
DH and I each had 5k savings when we got married. That was the deposit on our first tiny 1-bed flat in 1999. We have moved 3 times since then, now in a 3 bed house, won't be moving again if we can help it.
Bought in 2007 when mortgages were handed out like sweets. Lived with parents before getting married, so no major outgoings, although we both had badly-paid jobs tbh (to give you an idea, our mortgage for a two bedroom ex-housing association flat in a cheap area of the country was 4.5 times our joint income). We each saved up around 1/3 of the deposit of 11k, then parents and grandparents stumped up the rest by way of wedding presents. The recession coupled with our tracker mortgage has meant that it remains cheap.
It's going to be very hard to move to a family home, though, as we want to do in the next couple of years.
The area you live in does matter to small children. It arguably matters more to them than to adults, because everything you do is within walking distance: so you take them swimming, to playgroups, to the park, to the local shops, to the library etc, all day every day (as opposed to working adults who hop on a bus or train and spend most of their waking hours wherever they work and maybe go out a lot in the evenings).
There is a huge difference in quality of life for those little people who are so close to the texture of their physical surroundings. I grew up in Merseyside in the 70s and 80s and everything was broken, graffitied, literally shitty. There were boarded up windows, whole rows of shops closed up and smashed up where no one could run a business, needles on the ground at playgrounds, overflowing bins, litter and dogshit everywhere, it was depressing. I don't want my children to live in a place where everything is either locked up or smashed up. I don't want my children to go to a primary school like mine.
I bought my first one when I was twenty two so a while ago.
I don't know if they still do this but worth looking into but when I bought they took the amount between what the house was on the market for and what I offered and made that the deposit as "seller pays deposit"
I.e. the house was marketed as 29,000 I offered 26,000. So there was a 3,000 deposit paid by seller.
I wouldn't disagree vezzie - the area we bought was no where near that bad and we did considered the amenities when we bought. Though since then some of them have gone.
Its not so good as they get older, secondary still bad despite new staff and new initiatives, less activities in immediate area for their ages and public transport buses and trains very expensive. Starting to have doubts about how good the teaching actually is at the friendly Primary. Don't feel it safe for the DC to wander round by themselves - something they''ll want to start doing in a few years.
So definitely be cautious about cheaper areas - but there are good places with good quality environments much cheaper than London prices.
We were lucky enough to buy in 1996,when prices were very low.We had a huge 3 bedroomed period house with a 100ft garden and it cost £45k.I remember panicking about the huge sum of money we had borrowed,which seems silly now.Dh had £5k saved as a deposit and the mortgage was £220 a month.We lived there 10 years,did it up and sold it in 2005 for £145k.
We used that money to buy a very dilapidated house in a lovely village in the area I grew up in,and are very slowly upgrading it.We are overpaying the mortgage and hope to be free of it in the next 7 years.Each time DH has a pay rise,he puts the 'extra' money into savings rather than raising our living standards/buying more stuff.I'm self employed and have an irregular income so don't manage to save much,but we live within our means.
lived with parents and then saved the same amount as it costs to live (i.e. mortgage, bills, etc) each month. soon saved up a hefty deposit and also had no 'shock' when we did move in as we had been storing away that money anyway.
Have friends who move back to their very understanding parents between house purchases as well so they can sell up without a chain and buy a do-er upper. Its not easy but well worth it.
Cassandra, it was margerykemp who said rather sniffily, "it is for your benefit, not theirs" - I really disagree, I knew people when I was growing up whose parents wouldn't let me take public transport to visit because they thought the area they lived in was unfit for teenagers to wander about in, and their children were like princes in the tower, isolated lonely de-skilled intellectuals surrounded by wood panelling and music rooms inside, and smashed up desolate streets outside, being driven everywhere or not going out, just because their parents wanted 6 bedrooms and somewhere to put the baby grand when they could have got a nice semi on a semi-decent bus route and their children could have gone out under their own steam now and then.
I'm agonising a lot because we'll be doing school applications soon and thinking about schools and children's social lives gives me The Fear.
Bought our first flat in London 1999, with a £5K deposit, which we'd saved and sold in 2003 for a 77K profit. Used that to buy our 3-bed semi just out of London, where we still are. Can't move yet, but will move when I am working again.
vezzie I didn't read margery's post as saying kids don't care at all about area or big house. I read it as saying kids would prefer a secure i.e. owned home which is smaller/in a worse area, rather than a rented home which is bigger or in a better area.
Don't know if I agree or not really. I don't have much experience of renting, and none with kids, so no idea what the downsides are.
I agree with you that if it's a choice between smaller home in a better area or a bigger home in a really bad area, I'd choose the former.
We both worked two jobs (daytime and evenings and weekends) and saved and saved and saved. Saved £17k over about two years (3k was inheritance after family death) which was 10% deposit on our first (small, needing total refurbishment, in non-trendy part of London) flat. This was in 2004. We have moved twice since then (first to a small house in London with a much bigger mortgage, second to a much bigger house in Norfolk with a much smaller mortgage!).
If (big if) nothing disastrous happens to our finances we should be mortgage-free by the time the kids leave home. At which point we will sell this house, buy a little bungalow and spend the remainder on gin.
We bought our flat in 2007 with no deposit but took out a 125% mortgage to clear some debt too. Worst decision we've ever made. We're now stuck with about £30k negative equity so can't sell. Then MIL passed away and we used DH's inheritance (not a lot) as a deposit on a house. We've now got the house and the flat but the flat costs us a fortune. We're hoping that eventually we'll break even on it and sell it but we got a 35 year mortgage. Wish we hadn't bought it.
I opened a bank account and started saving (very small sums) when I had a paper round aged 13 years old then I had part time jobs in restaurants / call centres etc while I was a teenager / at uni and continued to save small amounts. So saving has always been something I have been brought up to do. I was also exceptionally careful with money while at uni and hardly ever bought new clothes and stuck to a really tight budget for food and socialising. This meant I managed to leave uni without any debt (except for student loan) unlike a lot of my friends who had large overdrafts to clear.
When I left uni (in 2005) I got a decent job and was able to save larger amounts. While I saved I lived in shared houses with up to 4 other people to make renting cheaper rather than renting my own flat and was really careful with my money. By 2011 I had saved enough money for a deposit and was earning enough to get a mortgage for the balance. My house is only small (two bed terrace) but I am proud of it and the fact that I managed to get on the property ladder all by myself with no help from anyone.
Tips that helped me with savings include: (1) to transfer money from my current account into savings account on pay day (ie. before I had chance to spend it!), (2) to work out a weekly / monthly budget and stick to it, (3) only to shop for clothes (a weakness of mine!) in discount stores such as TK Maxx or Ebay and only to buy stuff I will get a lot of wear out of (so not high fashion items that I will only wear once) (4) to sell all clothes I never wear anymore on Ebay.
Had my first child in 6th form aged 18, and lived with my parents. Went to Uni the following year and lived with my son in typical rented student flats. Met new partner and was pregnant with DD1 when I graduated into the 1993 recession.
Both unemployed, we returned to my home town where the local council nominated us for a 3 bed maisonette with a local housing association. This was a nice property in a lovely part of town, but it was pokey and had no garden.
A year later, DP got his first graduate job in London. He stayed with his parents and came home at weekends. Luckily, the housing association operated a scheme where they offered a grant of £10,000 if you bought a property and vacated theirs.
We couldn't afford to buy in London, but we bought a spacious 3 bed house with a large garden about an hour's commute away. We bought in 1995 and it cost £47k (£37k after the housing association had paid £10,000). We were very lucky.
Since then, we've created 2 additional rooms via a loft conversion, but we resisted the temptation to trade up in 2007 (just before the crash) and I'm so glad that we did!
I bought my first house with my DP nearly 10 years ago when I was 23. We'd both been made redundant that year, found other jobs quickly so used the money along with some savings to put down a deposit. We sold four years later when the prices had come down and although we didn't make much on our house we were able to afford a much bigger house and build an extension on it.
Didn't bother getting married, saved a fortune! That covered stamp and move costs.
Also DP got a really good redundancy deal and that was most of our deposit.
Yes we had a really cheap wedding (under £3k for everything inc honeymoon) as our priority was saving for a deposit.
We bought 8 <eek was it really that long ago> years ago with a 100% mortgage in the days when they were available.
Sorry haven't looked at the whole thread, but have you looked at Shared Ownership OP? By the time you've paid rent and mortgage your outgoings might be similar to your rent, but part of it is going to the share you will "own". You can buy as little as 25% share, and you only have to raise a deposit on that part.
When DD (age 11) told me she was getting a job at 14 to start saving for a house I thought she was being very forward thinking. Now I realise she'll have to.
Gosh so depressing. Not sure I want to spend years living in poverty in a shit area just to become part of this broken system.
Currently looking at communes.
What are the rules on squatting these days?
Bought out 1st flat at 19 years old with DP. This was 2005. Deposit was £3k.
Sold that in 2010 and bought our house that we live in now having used a large £40k equity from the sale of flat.
Not all areas have been affected with reduced values.
We are now looking to move again 2 years after buying our houses and 3 agents have valued it at £65k more than we paid for it. That coupled with the deposit we had already put down means we are in good position to move again.
I used to regret buying our first flat at such a young age, but I'm very glad we did now as none of our friends are on the ladder yet and 99% still living with patents.
At 26/27 years old, I don't think that's a good thing
Not quite sure why I keep coming back to this thread. It just winds me up every time I read "...and it's gone up £50k in the last two years" or whatever. It's insane. All valued by estate agents and validates by banks etc. Broken system indeed.
Enjoy your profits for doing bugger all.
Yes, I am bitter!
We have always rented, been in the house we are in now for 5 years. I am nearly 40 and DH a bit younger. We have never earned much but save every month in order to be able to buy at some point. We can't borrow anything from family as they have no money to lend.
I do swing from being desperate to be in our own place to thinking what is the problem with just staying here and saving money (shabby Victorian semi with no central heating but cheap rent in a fab area with fab school almost next door and near to my work and Dh's). I know a few people at my workplace who are in the same position.
Was on a keyworker scheme in 2007 as I am a teacher but the funding ran out very quickly. You could borrow between 20% and 40% of the value of the property as a loan.
Also, because I have never had a mortgage, sometimes the thought of borrowing so much money freaks me out.
Saying that, we have paid out landlord £30,000 in the last 5 years which could have been a mortgage being paid off.
It does worry me sometimes and i would love the children to have a home that is ours.
FatFaced Not me, I spent around £40k
closer to £50k doing up my house, which is currently for sale, and I'm struggling to make that back, let alone a profit. Estate agents seemed to be confident it would be worth £40k more than I originally paid for it, but no-one seems to be buying.
Any system that relies on adults being given money by their parents, or moving back in with their parents to save, is broken, no?
I suggest trying to find a decent landlord who will sign a longer rental agreement - it doesn't have to be limited to a 6 month AST. Try and find a 'professional' rather than 'accidental' landlord - the accidentals are always going to want you out if they get a sniff of an opportunity to sell the house.
We pay £1500 in rent and have owned twice in the past. We genuinely believe this is a very bad time to buy, so whilst we look at repossessions/auctions etc we don't bother with anything else as feel there's too much risk of losing vast amounts of money over the next 10 years.
This thread says it all really. Virtually everyone who has mentioned buying either did it before the bubble or had a parental handout/loan. The result is that very few houses are selling. At some point the generation owning most of the property 'wealth' is going to want to sell it to a generation with record student debts at 8X income multipliers.
In the last 6 months or so there have been articles in the Financial Times, Wall Street Journal and Economist warning about the risks of the UK housing bubble collapsing. I wouldn't worry too much about what the Daily Mail/Express have to say!
Just try and get a decent landlord and a long-term tenancy that you're happy with.
You spend 1k a month on rent. Can you not face living with family (am I right thinking this is what you're currently doing?) for 6 months for the chance to save up 6k for a deposite?
It sounds like you've had a rough deal with the places you've rented. Try not to lose confidence though. Many people rent and rarely have issues. Your next rental could be lovely. Once you're inside and shut the door it is what you make it - a loving home.
I got on the housing ladder when I was single by buying a tiny bedsit when an ex and I split up. It turned out to be v.lucky I did as I lived there for 6 years and that enabled me to save a deposit for a flat. Now have a detached house with a garden - but it all started with that shitty bedsit with dark green and gold wallpaper!
I know that's not an option for you with the kids, I'm just saying that just because you start out somewhere less than ideal, it doesn't have to be like that forever.
We lived with friends, or family, rented the cheapest awful rooms. No holidays, no t.v infact nothing much more than a mattress. Saved every penny for deposit. In fact we didn't have a pot to piss in. Now, several houses later, mortgage paid and good times in front.
If you are prepared to go for the cheapest option, or go without entirely, its possible. Many people aren't prepared to do this and they'll never manage it. Our first dc was 1 yr old before we had our own place and now 20 years later we are finally straight and happy. "Ay but try telling that to the kids today and they'd never believe you", lol.
Not me either, FatFace.
We sought out derilict properties and spent large amounts of cash and effort renovating them. That's not nothing.
Saved into a regular saver at the beginning of each month, borrowed money from my brother and grandad. Had enough for 10% deposit then parents sold a house and were able to give us enough to bump it up to 15% just before they started clamping down on first time buyers.
We bought a 2bed flat in London for £185000 (marketed for £220000) in 2010
Bought house in 1991 for 35k with partner as garantee. Sold in 1999 for 65k. Bought another house for 87k now worth 230k.
See that 's so wrong. 1991 35k vs 2012 230k . Last time I checked i wasn't earning over 6 times as much as I was a decade ago. Lucky for you, but wrong for everyone else.
ditziness but that's 2 decades ago and she "traded up" at one point. And wages have increased over that time, but as you pointed out you went travelling instead of investing in your career and/or housing in the UK. As a household on about the median income who didn't graduate until 2007 (so didn't choose not to buy in the 90s) I've still managed to save and then buy. Not in our ideal location and I've had to set aside some dreams, but we managed it.
The problem is that unless you inherit silly money then most people's life plans are a compromise. You don't seem to be getting that. I've chosen to save and have DS fairly young at the cost of some travelling dreams and have to live with that. You choose to go travelling and live your dreams, and have to live with the fact that you don't have the same financial stability. Its generally not luck, or cutting things ridiculously close to the bone, but sacrifice that gets people a deposit.
I brought with a 95% mortgage but had a really small wedding in 1996. My friend had a massive dream wedding the same year but didn't by until the next year in which time my house had gone up from 77k to 93k so I was able to move after just 16 months into a 4 bedroom detached house. I couldn't believe it as had DS1 at just 19 and lived in some absolute shite holes for the previous 7 years.
ditzi I do agree with Mrs Hoarder. You can't come into the property market later in life without a lump sum, and expect to be in the same position as someone who has been saving and/or paying a mortgage through most of their 20s and 30s. I don't think that is a new situation either.
Yes I guess that I've been fortunate to have some Great life experiences, great parties, great festivals and all sorts of fun and a interesting and satisfying career. I just didn't realise it meant that I would not be able to have a stable home at some point. OK if I didn't earn enough to pay rent/ mortgage then I'd understand that not being possible, but between me and DH we earn 40 ish grand a year. That should be enough surely to provide a stable home for our children. It's wrong that it isn't. Houses shouldn't be a commodity, they should be there for people to live in.
Btw, not trying to cast aspersions on anyone else for having bought houses and made huge profits. I'm just lamenting the system. And acting like a spoilt child butting my head against reality whilst I get my head round it I guess. I'll get there. We're looking at social housing and shared equity and have also been offered a loan from a friend. Something will happen hopefully. Thanks all. Sorry to sound so fed up. It's just cause I am! I'll grow up shortly I'm sure.
If I were in your shoes I would rent a 2 bed place for 2 years and save the difference in rent to get the 10/12k you need.
DP and I earn 80k a year between us but were still only able to borrow 136k with a 15% deposit for a mortgage. Things have definitely got harder with regard to getting mortgages. Gone are the days of 6x income mortgages and 5% deposits.
Bought a flat with my ex when I was 22. We got 100% mortgage.
He bought me out five years ago and made a profit for 23,000.
Used that for deposit on current house. (15% deposit needed) and had some let over. Bought in midst of crash when people were panic selling. Valued at 30,000 more than paid for it. Now married but DH has kept his flat as in negative equity and we rent it out.
Saved again and have just bought another house just last month very cheaply for mum to live in. 25% deposit. She was in rented. She has put in the money to redevelop it from her retirement lump sum. In return rent is mega cheap and actually going to leave it for foreseeable as she is about to be one full time child minder for our first baby having recently retired from her job as a primary school teacher.
I always thought it was best to buy, but now I think maybe only if house prices are going up.
DP and I are in our late 20s and have rented (together) since we left university. We have saved up £25,000 for a deposit, and have a few thousand in our emergency fund. We are finally in a stable enough lifestyle that we could buy (just about!) but I'm not sure whether it's the right time.
We currently rent a well-kept 3-bed semi for £1000/month, which has a value of about £250,000 so would cost us ~£1250/month if we had a mortgage. I ran the sums, and in 5 years time, we would have £48,000 equity (assuming no change in house prices) if we bought a similar value place. But if we continued to rent (assuming 3% increase in rental prices/year), and put our deposit + £250/month into a 4% cash ISA, then we would have £49,000.
So based on that, I think we'll continue to rent and keep an eye on the market.
vezzie- you dont need to go from one extreme to another- just because you live in non-luxuary doesnt mean you live with graffiti/ needles on the street
Bought a mews house near central London for 120K fifteen years ago.
I had 25k savings. 25K off my parents. I was relatively young at the time.
Mortgage 70K - Took out a non status mortgage (the 'liar loans') God I wish they were still available!
The interest on the non-status mortgage was horrendous at the start. 2.5% above base rate. But I made the payments for two years and then moved to a high street lender. Trying to remortgage at the moment but it is impossible. Nobody will lend unless you have a whiter than white credit rating. And all this 3x your income crap. I mean, this is London!
I had a hell of a time buying my first place <although a lot easier than it is now I suspect>
I was under the impression that (in the 2002) you could get a 95% mortgage. So I saved up my deposit, found a flat, put an offer in and then found out from the bastard bank that I needed a 10% deposit.
After many tears, I put down all my money money into the deposit, kept quiet that I then had nothing left for stamp duty and legal fees. I strung the process out so that I had some more wage packet to pay those.
I then moved in and had no money to buy any appliances or furniture. I bought champagne flutes though and work bought me some champagne. So it was all good.
OP Have you thought of getting a mortgage broker? They charge a fee but it could be well worth it. You need one that can be 'creative'. What area are you in?
Thecook - when I looked in to getting a mortgage for DP and I (N London) with my part time wage, his full time wage and taking our £700 per month childcare costs they offered us......£70k. Big LOL for this area eh!
Changebagsandgladrags Love your attitude girl. I think I would have bought the champagne flutes and got my furniture and appliances off freecycle!
Yes we made a fair profit on our 1sr house, but we could only afford it by moving out of London. We then moved even further away for our current home. It has never been easy though & we are now stuck with school fees because the schools here are awful compared with the London borough we came from. However, we still pay much less on mortgage+school fees than we would have paid for a house nearer London & parents still have the hump with us for deserting them.
Conclusion- you can't have it all, you have to prioritise what's important to you!
I'd love to hear some stories about 'creative' brokers - what does that mean?
You might get a creative broker but that will be no use when it comes to actually putting in the full application for a mortgage IME. Agreements in Principle aren't worth the paper they're written on....
My husband & I have been saving for some time for making a sound deposit & after we sum up a reasonable deposit we hired a buying agent so that our house buying process goes smoothly. We inquired about different buying agents, their policies etc to know whether they could help us save some amount in any means. Because apart from the deposits, the stamp duty & legal fees turned up to be a huge amount. Considering all these factors we hired a Propsavvy agents in London as we could see that they can help us save a huge percentage in the form of deposits & stamp duty & also they provided us a mortgage broker(two in one) . And as we wished, everything went smoothly & we could save £27,000 in deposit & legal fees. Now we happily moved to our new home and settled down.
We saved, bought what we could afford and moved up and up.
I honestly can understand why young people find it so hard to get on the housing ladder these days.
Salaries not all that different to years ago, cost of living very high and house prices (and particularly the deposit) waaaay out of reach for many
I am rather old so bought my first house in 1991 (many of peers bought a few years before that and are now mortgage free)
We absolutely shit ourselves at first because very quickly interest rates climbed to 13%, but we were both working FT, earning great money and childfree.
We reap the benefits now but it was very difficult at the beginning...and would have been even more so if we were trying to do it these days as our salaries bear no comparison to back then in the "boom" years.
We were lucky to meet each other very young. We saved and saved and saved and ate beans etc for the first 4 years or so and then bought a house quite a way out of the city that we could afford.
We then continued to pour any extra money we could onto the mortgage - sold that house 10 years later for a house much closer in to work.
Most of our saving was done with two salaries pre-kids, now we are coming out of the baby phase, the 2 salaries are back so hopefully the saving can start again.
Me and dh moved to our respective parents. We didn't go on nights out. We didn't have holidays. We just had one 'treat' a month. Like going to the cinema or a meal or whatever. 18 months later we had a deposit/solicitors fees/moving costs
You know those mortgages that Northern Rock did, that caused all the problems? Ie, 125% of value etc?
I got one of them. It was absolutely fab. I had not one penny of a deposit, and saving would have been pointless as prices were rising faster than my entire pay cheque could have kept up.
So I got the evil mortgage, my wee flat went up in value, and in one year I came out with 17k.
Madness, but that's a property boom for you. Sheer luck, nothing more. DP did similar, and now we live in a nice big flat and will be mortgage free in about 9 years.
I feel so sorry for first time buyers now, its hopeless.
We rent at the moment, the rent is around half our monthly income. We were told a few years ago we needed a 20% deposit (we are self employed so they are not exactly falling over themselves to give is a mortgage!). The advice was incorporate our company and come back when we have two years accounts. we now have two years accounts (just submitted!) and we have 20% deposit BUT i feel like they will still say no tbh. Appointment to talk about it is soon. If they say no now I think we will give up for 5-10 years until things get easier again.
I am sick of giving all out money out for this shitty house - nothing works and the landlord wont fix it. If we dont get the mortgage we re spending the money on moving to a better rented house.
I never had the chance to live with family - they died when we were teenagers DH and I have been renting since we were 17/18.
Husband didn;t spend student loan and put it as deposit on a house in 2002. SO we could move last year as the equity had increased enough to cover even the fall from the crash - and lucky enough to sell ours.
We also saved up a lot. Took ages.
The mortgage company still tried to lend us 400k last year which there was no way we coudl afford without giving up verythign including living on anything but baked beans. Idiots - I thought the financial crisi was supposed to teach them something
I meant we saved for ages for the next house.
Message withdrawn at poster's request.
I got a full time job at 18 in 2001 instead of going to uni like my mates.
Anyway I saved like heck in a low paid office job and did part time uni courses. Me and ex-fiance bought after four years with a combined £15,000 deposit - most of which he inherited from his gran (all of which he got back when we split).
Then I met DH. DH saved for 10 years then bought his first house outright. He is 18 years older than me though so bought when prices were low.
We both lived with parents whilst saving hard.
First house (20+ years ago) - moderate increase in value of a terrace house
Second - bought right at our limit but it sold for quite a lot more
Third - Moved areas so house cheaper. Increased value £150k in 3yrs
Fourth - Stop gap house (lost most of money above on this one)
Fifth - Extended current house so have increased value but spent loads on it.
I don't know how my DC are ever going to be able to afford house though
Same position here as op. but I bought a house at 18, made 100k equity, ex remortgaged it to within an inch of its life he had all of it and then I signed it over to him when we split.
It grates me every single day, I just want MY house :0(
Lived in scuzzy, shared flats whilst working and saving. Then got a loan which I invested in dp's business. Six months later, I got my investment back with profit and used it as deposit on flat. Sorry, not much help for anyone else.
Born in the 1960s, first house was small and in a cheap area of the UK. I've never lived in London.
First house the vendor paid the deposit ...this one was purchased with a large deposit that was my divorce settlement
We bought our first house 18 years ago, the banks were practically throwing money at us to get a bigger and bigger mortgage. Looking back I wish we had stretched ourselves more because we could have afforded a bigger first home and would not have needed to move when I had my second DS.
We only needed £2000 for a disposit and borrowed £35,000!
I feel sorry for people nowadays who are trying to buy, the high cost of renting amazes me.
DP is 10 years older than me, so although I was quite young when we bought our house (27), he wasn't. He had saved up a good deposit (about £20k) over 15 years while living in cheap shared houses, with his mum and in a housing cooperative. I have never had the option of living with my parents since I left home (they're on another continent!), and have always worked in a low-paying sector, and I would never have been able to save enough by myself to buy a house or a flat. We bought in 2006, right before banks stopped lending out such large multiples of your salary, so we were lucky in that sense - our mortgage was 90% and almost 5 times our joint salary. I'm not sure we'd get those terms now.
Right now I'm the only one working as DP is a SAHD and the monthly mortgage payments take up well over half my pay - we got a 5-year fixed-term right before the interest rates plummeted. We'd love to get out of our current mortgage, as we'd save money every month even with the early repayment fees, but because we have only one salary right now we can't find anyone who will take us on. It's a bugger, but we are lucky that we have a house and can pay the mortgage every month and still - more or less - survive.
We bought our first house in 96 & only had to put down £2k deposit, sold up 5 years later and made a decent profit, moved in with pil for 2.5 years while we looked for our next home, had 2 dc by now. Then bought our current house just before house prices went crazy, would never have been able to afford our house in this current climate.
We didn't have any financial help from our parents and did it more or less on our own. I feel for anyone trying to get on the property ladder now, the deposits that are being demanded by banks these days are out of reach for young people just starting out.
We moved to a very cheap area many years ago, got a 95% mortgage and the 5% deposit "paid by seller". We couldn't afford to buy now. Savings? What are savings?
Message withdrawn at poster's request.
We bought a small terrace in 2004 with a 5% deposit paid for my our teaching Golden Hellos. Sold it 3 years later and made £25000 profit - used £15k as the deposit on our next house and took £10k to do it up (ha! ha! It's cost at least three times that but never mind). Our then-neighbours put theirs on the market after we sold and still live there now .
The week we moved was the week the credit crunch headline started appearing. To some people it would seem like bad timing but for us it was great: our house is probably only worth what we paid for it but at least we're making no profit while sat in a nice big house rather than stuck in a poky one.
Rented for a bit then we both got jobs in London in 2000, DP was on 15K, me 21K (both graduates). Bought a new build flat where they paid your deposit. Couldn't sell it by 2005 eventually did for a 30k profit (lost about 30K during the whole thing), moved to the other end of the country into a 3 bed house which cost 125K. We're now extending so it will be a 5 bed and well spend the next 20 years paying for it.
Worked 2 full time jobs from the age of 16-18! Lived at home with my parents during ths time and saved 30k! Bought my first house at 18... I am know nearly 30 and just paid my last mortgage payment and love being mortgage free!!
We are early 30s. We could only buy (in 2009) because of inherited money and a very high income. This is not in any sense a stealth boast (christ, what a "boast" it would be!) I am pleased for us, of course, but in the large I am depressed about it. People our age without those things simply will not be able to buy. Tenants still having the second class citizen status that they do, I'm not sure I like the kind of world that points to. All the politicians totally ignore this problem. We don't need more fucking "New Buy"
cons schemes, we need better protection and better cultural attitudes to private renting.
If you bought before c.2004 however, you are made. We are finding with house-hunting now that we're bidding against other people who are capital-rich (in a magic money sense, because their 2-bed flat in Stoke Newington is "worth" a certain amount) but very cash-poor/income-poor compared to us. It is really underlining to me how shafted you are if you're not already on the ladder.
Our house was £52k. That kind of helped!
My husband bought house before met me. He bought at 26, and had been working since he was 18 and living at parents rent free. He had 100k deposit, and paid off the 70k mortgage in five years. It's a country cottage that cost 170k in 2003, and DH has done it up over last 9 years. He has his own business and worked terrifically hard. I met him one year into mortgage. We didn't have children till mortgage free. Were not bothered about upgrading. Its three bedrooms, big enough for us. We're not planning on third child.
I would love to see the answers for just the people who are under 35
Op we're in a similar boat. We have enough saved now for stamp duty and all moving costs plus a little deposit but nowhere near enough these days. 15 years ago it would have been no problem. 15 years ago I was at school
totally agree with mad bus lady. I just managed to buy a flat in 2004 with a deposit from my grandfather and a key worker interest free loan. I see young colleagues who don't have a realistic hope of buying in London, being mucked around by landlords and even moving back in with parents to save for that deposit. What kind of a nation is this? You bought pre 1997 you're made, post then, well- you'd better be working in the city. Yes attitudes and especially legal frameworks to protect tenants need to change.
We are a nation of landlords, not shopkeepers.
I'm 27 and we moved into our first house last year. Previous to that me and DP both had flats- we moved into his and rented mine out.
When DD arrived we sold mine, then bought a house from a building company that had gone bust. It was unfinished and had water damage but was in a great area- also had HUGELY discounted price.
And so here we are! Took more than a year to get the place finished but it's been a lovely year so far in our new home
We bought our first house literally just before the market rocketed so very lucky-we also bought it off a couple who were moving into a brand new property so the builders of that paid our 10% deposit-again lucky.
Btw I'm 34 & DH is 33-we bought early.
I did it in 1982. I bought a flat in zone 2 SW London for 32k. I had 9k deposit (lucky - had 3k savings and my dad gave me 6k - divorced parents with new partners and no real home to go back to). My mortgage was 23k and I lied about my income. It was 8k and I said it was 9200. I had to have a lodger. My net pay was 447, my mortgage was £245, my service charge was £50 (flat). The bills were at least another £100. It was tight couple of years. Sold it jusst under 5 years later for £95,000 and bought my first house for £122,500. It was tiny but still zone 2 SW. Sold it 9 years later for about 165,00. We paid (I think) £310,000 for our current house in 1992. We got it cheap because the builders were going bust and the area was under re-development for next three years. You can shove another 0 on the end now but at the time it was high high risk and many thought we had gone stark raving bonkers.
I think the OP wants advice - not smug stories
We saved like crazy people while renting a cockroach infested house. I have a million recipes for mince and potatoes or rice or noodles. Never went out on date nights, never got takeaway, bought used everything if we needed to replace anything and in one year saved the 20% deposit on a very small needed lots of work home that was cockroach free.
Moving in was amazing, mortgage was cheaper than the rent we'd paid and we bought Chinese takeaway Took us 5 years to finish doing it up, then we sold it for double the money and bought a bigger house before Ds2 was born.
OK let's put a different spin on it then. To save £3k between 1979 and 1981 meant evening jobs and being very careful. The first two years of having about £60 quid left after bills were paid and jogging along with a lodger took some grit and determination, a limited wardrobe and a quiet social life - it was bloody hard. Having a £60k mortgage in 1987 just before black Monday and huge job insecurity was terrifying - it got more terrifying as a single person in 1990 ish as interest rates rose to 15% at one point. At that stage I had two lodgers just in case and fortunately worked for a bank.
In 1994 with a six figure mortgage, dh, pulled down 45k in fee income. I gave up work because ds was very ill as a baby. Every penny was counted for the next two years. We survived because we managed it down to brass tacks for two to three years. Many at various stages would have given up. I and we didn't; I and we saved hard, managed carefully and went without for periods. It wasn't easy and it wasn't on a plate ever all things considered. it was hard hard work and very careful management.
House one - £54K, 1996, joint income £40k, 95% mortgage, sold 2002 £77k
House two - £162k, 2002, joint income £85k, 95% mortgage, sold 2003 £227k
Got divorced and moved in with DH who bought house we are still in in 1994 for £94k with single income of £25k, still in same house but have added to mortgage over the years extending it and have about 18 months to go. Joint income now pretty high but as soon as mortgage is paid we will start saving for DC deposit, and they are still at primary school, rather than upsize. We appreciate just how fortunate we were to buy our first homes in our early/mid twenties on good but unspectacular salaries.
Don't see any smug stories tbh, OP asked a question & has got answers, buying your 1st home is hard work unless someone gives you the cash so sorry zero smugness there, we had weeks where mil bought us a couple of bags of shopping cos we literally had fuck all to eat in the house-again zero smugness
I think those of us who bought prehousing boom realise we are lucky and many of us will be helping our children get on the housing ladder, so we will end up paying more for housing, just later when our children are older, as well as paying for them to get through university etc. Having your house worth more doesn't benefit you if you have to pay more if you move or if your kids have to pay more. Banks and landlords are the only people who profit from current expensive housing.
Some people are unrealistic about their first house though and want to go straight into 3 bedrooms in a nice area, rather than the more usual small flat somewhere less posh.
We saw an Ad for Shared ownership in the paper with a local Housing Authority. They required a small deposit and we went 50/50 in 1994. It had old windows and no central heating. Absolutely freezing! Made some improvements, new door, some new windows etc Had our first child and sold it quite quickly.
Bought my mum and dad's house with 95 percent mortgage and they kindly knocked about 8k off the asking price. Moved in whilst pregnant with second child and now ten years into it.
Bought my first house when I was straight out of Uni. Prices were low and house sales were slow. Once on the ladder I was lucky to benefit from the market rising steeply. I can appreciate that buying now for the first time and at the height of the market is a harsh position to be in.
Bought our first house in 2005 when we were 20 years ol using £3k deposit. Struggled for a while on low wages but house prices rose and we moved and now have a house we love and cheap mortgage
Just to add: we weren't able to have the fun that all our fiends were having at that age.
It was hard, but worth it.
We are now able to have the fun we missed out on back them and the holidays too.
Unfortunately we are the only ones out of all our friends who have moved out.
A lot of th are only just out of university and just starting to save
Bought a 1 bed flat in 2003 for #210k. My parents gave me #10k for a deposit (I've subsequently tried to give it back, but it was refused) and I mortgaged the rest on a "professional persons loan" (not sure if these still exist but back in the day, lenders would increase loan to value ratios for professional persons like lawyers, doctors and chartered accountants). Even so, the mortgage payments were pretty brutal for the first year until I changed jobs and got a decent pay rise. I actually sold in 2007, but invested the equity in the stock market in early 2009, so i can always go back into the market if I so choose.
I STILL tease my dad about the fact he refused to guarantee a mortgage for me in 1996 (I was working but fresh out of Uni and needed a guarantor) as he thought that house prices would go down
My parents lent me the deposit for my first flat. When I sold it it had gone up in value enough to pay them back and still have 10% deposit for the flat I bought with now dh. Then moved out of London so could afford a 4 bed house for the same price. Our mortgage is scary enormous though, and we are trying to overpay.
I went to work full time at 18. I got engaged and then married at 19. We had a small wedding (paid for by my parents) so we had been saving for a year, this gave us the deposit for a one bed flat. We lived there for 2 years and then moved to a house.
The scary thing now is that if our house was on the rental market, we would not be able to afford to rent it I live in the south of London and prices are just silly.
In the same boat OP.
We are 30, pay over a grand a month to rent a one bedroom flat. Need at least £60,000 deposit to buy a 2bed flat near where we live now. I have friends who have bought flats in London and all inherited/were given over £100,000 for deposits.
Other friends lived at home rent free for years (not possible for us) in order to save, none of who have then been able to buy in London and some have lost money/negative equity etc. they have also been given money.
I don't know anyone who saved a deposit while paying rent.
We have only been in a position to save for 6 months so far. Choice for us I think over the next couple of years is- do we keep saving a grand per month for the next four -5 years (while our rent goes up by 5% every year and all cost of living goes up too) to buy a flat or do we just get one with our lives and have a family and realise that home ownership will never be for us. We can not save and pay nursery fees. In fact nursery fees and rent for a second bedroom will be hard enough.
I read threads like this and feeling a mixture of 'good for you' and 'you have buggered house prices up' with so many stories of people buying and then selling and doubling their money for essentially doing nothing.
I feel v sorry for anyone younger than me, generally and wonder whether I should actually bring kids into it at all.
I bought my first house in the early 90's- it cost £40,000, it was a new build so the company paid the deposit- dh already had a house when we met, so were lucky.
I really sympathise with people trying to buy today, we just lucked out with timing.
(£60,000 deposit is 20% deposit as that's what the banks I have been to say what we need.)
I think the key to this is a) parental help b) a lucky break c) living in a part of the UK where house prices are significantly lower than in London d) being very frugal with money and living well within means. Or a combin
I've had three mortgages and didn't make a penny on the first two but that's because I lived in one of the only Boroughs in London which didn't really benefit from house price inflation in the 1990s. DW came to house buying late but had been very frugal with her money (so had the required deposit for her first property) and had lived somewhere where she paid a peppercorn rent for a couple of years which helped her considerably.
However we don't live in a particularly nice part of London or have a dream house so luck hasn't really paid big in our tale!
I managed it easily because I bought before prices became stupidly inflated in yet another house price bubble (as in 1970's, 1980's, 1990's) fueled by irresponsible lending from the banks.
Be patient and wait for a correction, OP.
Well since I started this thread things have changed! We are now actually buying a house. Meant to get the keys in 2 weeks.
Because we were homeless we got offered a council house, which meant we became eligible for the LIFT scheme ( government shared equity in Scotland) and so hurray!
So we started looking, got excited, then realised that the LIFT scheme wasn't going to work for us, as the calculations, stipulations and restrictions on what you could or couldn't buy priced us out of the areas we can affordably live and work ( without changing jobs, life entirely). We had 12 weeks to buy somewhere that had to be exactly 155k but must be 4 bedroom and must be a house rather than a flat. Which would have meant us moving 30/40 miles outside the city we live and work in, essentially meaning we'd have to have got new jobs as the commute time and money wise would not have been doable.
So we started trying to work out what to do, accept a council house ( too small for us ( max 2 bedroom for 2 children) and no choice of location, and therefore schools, but beggars can't be choosers) and try and save on the lower rent. Buy a house through LIFT, and change jobs and our lives completely by moving to an area we didn't want to live. A lot of worrying and soul searching resulted in an unexpected phone call from a relation who had heard through family of our position and wanted to lend us a deposit. We had no idea she had the means to do this.
So the house we're buying now is because this relative has generously lent us 15% deposit on a 120k 3 bed ex council flat. It's not the biggest or best flat ever, but it's warm, watertight, big enough, close to our jobs, near good schools. So we're very very happy. It needs a lot doing to it, hasn't been renovated seemingly since it was built in the thirties, but fuck me it'll be ours and ateast I can paint a wall and buy a bed!
So in conclusion, we've been very lucky to be able to buy what we wanted, with small compromises through the help of a relative. But with bigger compromises we could have bought, or been in a better position to save. So the situation wasn't as impossible as I first thought. So my advice would be to those in the same position, take some chances, talk about your position ALOT, explore as many options as possible. There are other options out there.
Oh and the cost of our new mortgage, plus council tax,insurance, and paying back the kind relative still isn't as much as our rent was!
Save save and save. Friends and family used to take the mickey out of us as to how tight we were. At the time we were earning jointly over 100k. Paid of mortgage, bought investment property, saved 30k before conceiving.
Ten years later we have developed garden of 1st house, live in our dream house and I work in a job that I love but earns below living wage. We still are frugal with money much to the annoyance of DB. He however still rents lives like a god in France and has nothing to show for it.
We had no help on home buying front from parents but have since inherited money ( dasly way too early)
Bought the year I graduated with 100% mortgage in 2001. Big 4 bed terrace in crap part of town, cost £52k. Mortgage was £260 a month on a 40yr mortgage. I rented two rooms out for £250 a month each thus effectively having mortgage and bills covered. Lived there 2yrs. Sold house to one of my housemates for £30k profit which paid deposit on next house.
I think we just got lucky at the time to be honest, I was about 22, dh late 20's and we bought our home with 110% mortgage for 40k and sold about 7yrs later for 55k. We''re in no better a position now though because to move to be near our families we had to buy a shared ownership house with the housing association otherwise we couldn't afford to live in the area. That said, our monthly payments are low c.300 pm so we are saving to buy another chunk of equity in 5 years or so and keep doing that until we own it and we have hung onto the equity from the first house to do improvements. It's really not easy and those who have had help from relatives with deposits etc are in a very fortunate position. Our parents would never be able to do anything like that. But we're happy with the home we have, I would love a bigger house but not the bigger mortgage so for the foreseeable future we are staying put.
Glad worked out for you op.
the housing schemes are very restricted as freind nhs looked at keyworker schemes and hardly any and rule has to work in same are when hospital wasentin keyworker area,
people profited from buying council houses know people who took over tenancies from elderly relatives and brought, made a profit.
The latest scheme new buy only which are like shoeboxes we live in 3bed new build rented does my head in. plus new builds depreciate quicker.
All the doer uppers been brought and sold by property developers.
a good school can add silly value.
most mumsnetters will have kids.
we currently have single income
no rich relatives
no option of moving back in with parents with 3kids.
I pretty much 95%sure we will never own.
my only hope is we rent something bigger and better.
First bought in 2004 when you didn't need a deposit - i remember we were even offered an 105% mortgage which we declined!
I feel for people now who struggle to get on the ladder - you need such a big chunk of deposit (especially in London which is where i was)and it is very difficult to save for if you can't live at home or ask for help from your parents etc.
So OP in answer to your OP- get given money!
Lucky you. Enjoy your new home
I suspect council tax cant be frozen forever.
when we moved to area nd started looking at rentals there was so much competition had to be so quick then went so soon couldent even be fussy about areas we had a month to find somewhere in half decent area.
we made comprimise as the kitchen and bathroom are dire but its in ok ppostcode, nice garden. we rebt trhoiugh gtreedy agent who change annual admin fee for each contract as landlord wont give more than 1year so he can up rent every year.
recently had broken fire waited weeks.
not allowed a dog that kids so badly want.
Im not sure council tax is fair as its based on value of home which renter does not benefit from maybe renters should get reduced council tax.
Also something has to be done about 2nd homes.
I dont get why they dont regulate the private rental market give tennants some rights and protection.
even a social housing tennant has more freedom and security than private renter.
Must leave this thread as all the gifted money depresses me.,
The dire lengtsh people have to go or adavantages they need its crazy.
My DP helped us out with our first flat. They loaned us their savings (we had a proper legal 'mortgage' document drawn up and everything) which meant we could afford to buy. We bought a doer-upper which we did-up, lived in for about 6 years and then sold.
We gave them their investment back with a little bit of interest, and bought a 3-bed house which is where we live now.
We couldn't have done it without them.
Yes, it's very strange, I started this thread thinking that it was impossible and that we'd never make it, and feeling jealous of people with rich relations.
I think it just goes to show that nothing is impossible. ALl yous that want to buy something, then start actively trying to do it, talking about it to everyone. Who knows?
and btw, thank you everyone who contributed to this thread, it has been very inspiring for me x
Well, OP, you didn't 'make it'... Like a lot of others on this thread you've had to count on someone else having the deposit for you because you would never have done it yourself.
Sadly I don't think most people not giving up is going to make tens of thousands suddenly pop up.
Yes we would have, we would've have bought through the government shared equity scheme or would've taken a council house and been able to save. Both of these things would have been a compromise in terms of size of house, location and required a big change in our lives, but we would have done this.
And my other point is that we had no clue we knew anyone with the means to help us financially either, we only find out by being vocal and talking about the problem. We were also offered a loan by a work colleague of my husband, but decided against it as a loan through family felt preferable.
None of these things felt possible at all a few months ago. We only found out all these options were available to us because we were forced out of our rented property and into the situation where we had nothing to lose and started looking and talking about it.
Regardless of means sought, a happy ending was had.
In these difficult times that's all that we can hope for!
Pleased as punch for you OP! Hope your move is not too stressful!
Anyway, I still think that the whole thing stinks and that housing isfucked up. That it is far too difficult to get secure affordable housing. But I no longer believe it's impossible, as four months of active searching for a solution brought three our way. I feel incredibly lucky to have been loaned money so we had the chance to buy where we wanted to live, but it wasn't our only option. And I'm grateful to this thread, because it encouraged me to explore shared equity and social housing.
In the OP's defence, the money was a loan. Not a gift. She is paying it back.
Personally I don't know how anyone who doesn't have cash-rich parents, an inheritance, a bonused job in the city or a lottery win, can afford to own their own home in this country. People need help to get onto the property ladder and it's not something they should be shamed about.
I am really lucky (or smug if you prefer). 100% BoE tracker mortgage in 2004. My rough area of Zone 2 became gentrified. Interest rates plummeted, property values rose. Our joint income doubled in that time. Sold in 2010 with 35% increase in value.
Used equity and higher salaries to buy a house this time in a nicer area a bit further out. It was absolute shithole (we didn't know how shit until we moved in). Got a gift from MiL to do it up along with stretching ourselves on personal loans and credit cards. Took us 2 years and nearly killed us but we now have a three storey period home in a good area of London in the catchment area of an outstanding school. Trust me, I know that sounds like a boast but I am so acutely aware that our modest Edwardian terrace is genuinely 'living the dream' these days!
Our mortgage is very high - it makes me weep when I read about all these £300 PCM mortgages!!! But so are our salaries and equity. We have also improved the value significantly and paid off our debts. I'm aware that we have also ridden the crest of the credit boom and have taken huge risks that might not have paid off if it wasn't for luck and London house prices.
I think our generation (1970s babies) is the last to have social mobility. My parents were registered homeless when I was born. I grew up in a council house. The state paid for my education and enabled me to get a good job. My DS won't have this luxury. My sisters don't and my mother lives in a rented studio flat.
And to those who say 'move out of London', don't you realise that property values are so high and salaries so low outside London as well that the gap is insurmountable. My DSIS and her DH have good secure professional jobs but average prices in the village they grew up in are ten times their joint income. It's a popular area for second homes btw.
It was luck in our case. We're old enough to have bought in London before things went crazy, so had the equity to be able to move a bit further out of town and swap a flat for a house. We couldn't have done it if we'd started five years later, even though I'm decently paid, which is a sobering thought.I'm lending my sister a deposit for a house out of London (in north east which is why I can afford it) as she hasn't a Snowflake's chance in hell of saving it while paying rent.
yes it's a loan, that we'll pay back over 5 years and as I said before, paying that whilst paying the mortgage and council tax and insurance, is still less than our rent was. So we're kind of saving in reverse. Which is brilliant!
fantastic, down and outnumbered! That, in my opinion is what needs to happen if people are ever to get out of this crap situation. People with houses who have savings or equity they can release should give friends and family loans to enable them to save whilst buying. Because you can save with a mortgage, but not whilst paying rent. We're paying back our relative with the same interest she was getting on her savings. All she's lost is access to the whole sum of money for five years. All the people on this thread who have benefitted from the housing market and have the means to help someone out that they know should. I think it's a moral obligation
1. Rented a shit house in a shit area.
2. Borrowed from parents (who did nicely out of the housing boom)
3. Bought after prices crashed.
Now have a relatively small mortgage - but the truth is that it's mostly due to 2.
I saved from 16-22 while I was at school and Uni. I had a number of jobs and tried to spend as little as possible. I bought a cheap first house with a 95% mortgage and tried to add value to it as well as trying to pay off as much of the mortgage as i could afford to. Sold it after 2 years and bought a flat with an 80% mortgage. Same story as the house. Sold it and bought another flat with a 67% mortgage. These properties were sold in a booming market - 1999 till 2006.
Now stuck with my flat as I could only sell it by losing a fair amount of equity. My DH also has a flat in the same circumstances. So, we rent out our flats and we rent a house. In many, many ways I am enjoying renting. It's great that it's someone else's problem when something goes wrong!
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