To ask how you managed to buy a house?

[ditziness]

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

Any system that relies on adults being given money by their parents, or moving back in with their parents to save, is broken, no?

Yes, FamiliesShare

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.

derelict

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

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!