Impossible to find a property to buy where repayments are less than £1100

[IGuessNotThen]

Not living in the south.

We are still renting just keeping an eye on the market while rates are so high. We can’t find a house, even a small 2 bed, where repayments would be at £1100 a month or below. That’s with a 35 year term.

The overwhelming majority of properties are upwards of £250k, a ‘3’ bed semi detached with one bathroom where both the second and third bedroom are only 2.5mx2.5m and 2.5mx2m is £280000 ergo repayments in the region of £1600 a month. I just think that’s eye watering for 780 square feet.

How are people going to continue having families with 2+ children without sufficient living space or funds?

Eh? What's wrong with a two bed flat? Plenty of families in those. Kids can share.

What's your budget? How much deposit? Are you in Harrogate or Liverpool? As the prices will still vary enormously across the country, not just SE prices.

I agree. current interest rates combined with overpriced houses have made majority of houses unaffordable. prices have to come down.

um, they weren't saying anything bad about 2 beds?

If you’re after buying one of these 3 beds as a first home with a tiny deposit then yes, the monthly payments might be prohibitive.

If you’ve spent 5 years in a tiny fixer upper in a shit area, overpaying the mortgage and saving hard, then it’s a manageable step up.

They were talking about 3 bed semi detached houses. Those are not available for all budgets and never have been. We all have to cut our cloth.

I'm in a mid terrace house I really don't like, but the compromise allows us to have a garage for DH motorbikes. Prior to this I was in flats for decades. That's just what you do - live to your means.

A 3 bed flat at £130k over the same period with a 10% deposit is more like £600/month. So that would suggest there's options.

It entirely depends on what deposit you have and what your expectations are.

“The South” is a pretty broad area. We have several friends who’ve moved out of London, Brighton, Winchester in the past couple of years to places like St Leonard’s and Hastings where housing seems to be affordable and, having visited, the areas are perfectly fine.

You compromise. You choose an area which isn’t necessarily your ideal and buy a flat or maisonette rather than a house. That’s how you make the first step.

Some harsh comments here! We bought a 3 bed semi in the North West 5 years ago and the payments were £750. So yes £1600 is a lot of money! We earn a decent salary between us and we'd struggle to pay that.

I don't know how people on average salaries are going to get onto the housing ladder.

You’re right, but most people don’t buy a 3 bed house first they buy a 1 or 2 bed flat. And a 3 bed house is adequate for having 2 kids. Nobody needs more than 2 kids. It’s either save more for a deposit, buy a smaller place or increase income. It’s awful but true

Are you looking at new builds by any chance?

All the new builds in my area are of that price for a 3 bed and they're tiny - but something that needs some work doing is bigger and cheaper.

Also it depends on how much deposit you have, your affordability and at which rates you're able to get.

I agree, you start at the very bottom like everyone else but, Ifindd it strange that we're of the mentality where suitable housing for families is out of most peoples' budget, and we just all believe that that's acceptable.

Thank you, this is what I mean! We just wish repayments on that kind of size of house could be anywhere from £700-1100 a month. £1500 is outrageous!

Also.. for everyone saying start at the bottom that’s not viable like it was 10 years ago because house prices can’t continue to rise as fast so negative equity is more likely.

Yes, when even the bottom is out of many people's reach, and social housing is an absolute joke. We're in a desperate situation.

Plenty of people can afford those prices though. It's why the market isn't (and imo, won't) bottoming out quickly. If they will lend you that much, you can afford to pay it. You just adjust your outgoings accordingly.
It's not right, but that's the reality.

It's a myth that mortgages are cheaper than rent.
We have been keeping an eye for a long time and it has been like that been like that about 15 years.

Are your jobs location dependant or WFH? This three bed end terrace would cost £795 a month on a 25 year mortgage, plus you’d be living in a place which scores highly on the “most desirable” lists most years.

island living is not for all, but this is a very accessible island.

https://www.rightmove.co.uk/properties/137652005

It's most certainly not a myth in lots of areas.

I agree. We are in a 2 bed flat with a baby. It was meant to be a short time property for around 5 years to get us on the housing ladder (as others on this thread have suggested doing). I've looked at moving to a three bed terraced house and but that would be circa £1000 a month mortgage payments, even with a large deposit. We are two 40yo professionals in good stable jobs, good with finances and sensible with money. Yet a nice family home with a garden looks impossible at the moment. Either prices have to come down by a significant amount or interest rates need to.

My mum has a 3 bed end terrace that cost her £135k bought this year, she pays £350pm but she had a £60k deposit.

Or this for a grand a month, in an excellent commuter town by train or car to Glasgow and Edinburgh.

https://www.rightmove.co.uk/properties/139886870

It's not impossible.
It might be impossible in the area you are looking, but there are a dozen 3 bed semi's and terraces in my town up for under 200k.
Buy at 180k with a 10% deposit. 25 year mortgage, 5 75%. Under your magic grand a month.

It is so totally and utterly dependant on where you live.

To counteract those prices, we recently sold our house for 50 pounds (as in the price of a nice dinner out for 2) more after 15 years of ownership.

Location dependent unfortunately.

No older ones. New build 3 beds are £350k round here and similar size to what I’ve described!!