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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To save up to buy a house outright?

74 replies

applenblackberrysmoothie · 02/04/2017 17:22

Two/three bed houses can be bought around here for less than £100,000.

If I put my mind to it I think I can raise this within six years. Is this a stupid thought or has anyone else done it?

OP posts:
EssentialHummus · 02/04/2017 18:04

Speak to a mortgage broker OP - get a sense of when you can feasibly borrow, and how much (based on current salary).

As roomster said in other circs it would make more sense to buy now with a mortgage, as rates are low, but we can only work with the circs we're in.

justdontevenfuckingstart · 02/04/2017 18:05

apple I was soo ashamed of the idiot I had been in the past that I was adamant that I didn't wan't to go on the mortgage. Oh couldn't understand my reluctance. It may take time and things CAN change.
Good luck.

Mummyoflittledragon · 02/04/2017 18:13

The problem is in 6 years time that house may be worth 200k. Not likely with Brexit, but plausible. So you could potentially be in a worse off position in terms of loan to value than you are now if you wait 6 years. I would speak to a very experienced mortgage broker. Not necessarily one attached to an estate agency - I've had issues with them on two occasions, where they got their figures wrong. You need someone, who's been round the block and comes through.

Original poster
applenblackberrysmoothie · 02/04/2017 18:14

I know mummy but realistically what can I do? I don't think they will go up by that much as I sold house here in 2013 and they are still similar prices.

OP posts:
Viviennemary · 02/04/2017 18:15

Somebody told me that almost anybody can get a mortgage these days if you have the deposit.. You just go to a mortgage broker and they shop around for a mortgage and you might get less favourable rates. Not sure how accurate this is. But you should look into it before deciding that you absolutely can't get a mortgage for six years.

DevelopingDetritus · 02/04/2017 18:21

Sounds good to me OP.

Mummyoflittledragon · 02/04/2017 18:22

Well go and talk to a broker. Then you will be able to see if there's something you can do.

todayshey · 02/04/2017 18:24

YANBU. I never understand how people have mortgages for 50k houses. Really?!

kingscrossnoodle · 02/04/2017 18:25

It's true that things drop off your credit file after 6 years, hwevere that doesn't give you a good rating. You will have a very poor rating at that point because you will have no credit history. You are looking at another few years after the bad stuff disappears to repair a credit rating to the point of getting a mortgage. I would save save save and try to repair the credit rating, then see where yo at in a few years. Buying outright may not be possible at that point, but you will have a MASSIVE deposit and a better credit rating, so more options.

kingscrossnoodle · 02/04/2017 18:26

YANBU. I never understand how people have mortgages for 50k houses. Really?!. Oh dear. Yes really. People do it because that's the only way they can buy a 50k house.

Original poster
applenblackberrysmoothie · 02/04/2017 18:37

Well I've got a credit card now so I'm hoping I can build up my credit history this way

OP posts:
todayshey · 02/04/2017 18:41

But in the real world 50k is a standard deposit.

TrinityForce · 02/04/2017 18:44

50k is a standard deposit?

'real' world? I'm not sure you're in it, love.

JaxCD · 02/04/2017 18:48

If you can't get a mortgage, then why are you asking the question?

Softkitty2 · 02/04/2017 19:10

The house will not be 100k in 6 years

Original poster
applenblackberrysmoothie · 02/04/2017 19:21

Jax I suppose to see if it's doable or if anyone else has. The threads been really helpful anyway. If it's not worth the same in 6 years well we don't know that as prices have def been stagnant here for 4 years.

OP posts:
welovepancakes · 02/04/2017 19:28

You can order a copy of your credit history online (I think Experian, Call Credit & Experian are the main agencies). If your deposit is high enough, then a lender may be content to lend you the rest, even if your credit history isn't great.

sooperdooper · 02/04/2017 19:44

Save enough for a decent deposit then get a mortgage, a 100k house might not be a 100k house in 6 years but if you've got 50k in 3 years you'll be able to get a mortgage no problem no matter whether you've had issues in the past

kingscrossnoodle · 02/04/2017 19:47

But in the real world 50k is a standard deposit. I think by 'real' world you mean your own world. Up here that's half the price of a 3 bed house. It's also where people often start on the ladder, we can't all be spending half a million on a property first off.

Original poster
applenblackberrysmoothie · 02/04/2017 19:47

I've done that welove, it's dire as expected.

OP posts:
AnathemaPulsifer · 02/04/2017 19:51

Start saving hard and when you have a hefty deposit - 20% maybe - check and see whether you can get a mortgage. The sooner you can buy the less it's likely to cost and the less rent you'll waste. If you can't get a mortgage when you have 20% try again at 40% or 50%.

HardcoreLadyType · 02/04/2017 19:52

You keep saving, and property prices are likely to start falling, and they'll meet you in the middle.

todayshey · 02/04/2017 19:52

You misunderstand, the 50k is for a modest 2 bed around 200k.

scaredofthecity · 02/04/2017 20:49

Err... we paid just over 20k deposit for our just over 200k house. Who on earth can afford a 25% deposit... not us for sure!

Mammylamb · 02/04/2017 20:56

Today; where I am 200k has bought a 4 bedroom Victorian semi with 3 reception rooms, a conservatory and two bathrooms. 50k would buy a one bed flat. Our first flat wasn't much more than that 12 years ago, and colleagues were shocked that we had paid such a high amount for a one bed flat