I can't buy a house

[milliemops]

So been in rented accommodation for many years due to exh huge debts spending money in takeaways and clothes (so not anything to actually show for it!) Three years ago finally filed for divorce and started to clear the debts, luckily most were in his name but cleared joint ones. Within 12 months I was debt free.

Two years ago, a lovely big semi came up for sale in my area. It need work as hadn't been decorated in years but was £150,000. Went to see a mortgage advisor who said I could get a mortgage for £135,000 based on my salary. So I spent the last 2 years scrimping a £20k deposit together and making sure my credit rating had recovered from previous debt....

Now in a position to buy, got my deposit and MIP and similar houses in my area are now selling for around £190,000. Even terrace houses with no garden are up for £170.000

I really don't want to move areas, I work and my children are in school within a couple of miles and my friends and their friends are all here. I'm just annoyed that I've saved a deposit and I now feel I will never be able to buy where i live as house prices are going up quicker than I can save more deposit.

I don't think there is a solution unless I move away from the area I'm in which will mean moving my children's schools or a 40 minute drive to school each day (currently a 5 minute walk).

Just interested to hear from anyone who has been in this position and what you did.

What about shared ownership? You can often staircase later and buy the rest of it.

You won't have as much choice of property but you may get what you want in terms of house with garden etc.

Have you seen a broker or a bank mortgage advisor?

@43percentburnt thank you. The MIP was from a building society. I did speak to a mortgage advisor last week who estimated similar figures but is going to get me some definite figures this week. She seems to think I could get up to £140-£142,000. But it's still not enough.

I don't think there's any shared ownership near me, I haven't seen any advertised. Do you know how I would find out about this?

You can normally do a Rightmove search for shared ownership. Also google "shared ownership ". Any new housing development over a certain size has to have a proportion of affordable housing so if there's a new estate being built near you, chances are that there will be a couple of SO properties. Also find out the local Housing Agency which deals with SO,and get registered with them. What about Help to Buy equity loan? Not sure if it's still around but you used to be able to put down a deposit, borrow 20% interest and payment free for 5 years, and just get a mortgage for 75%.

Millie
Idk any other way than doing a rightmove search in your area for properties fitting your criteria then sorting it by lowest price. They then come up. You could also try google.

You never know milliemops you may be able to get a reduction to £160,000 if any have been on a while. Don't give up hope and just keep saving.

The same thing happened to my mum when she finally kicked my dad out, she paid off all his debts and then worked really hard to save for a house. It seems never ending but she will be mortgage free in 5 years.

Keep an eye on the market and get a mortgage in principle, for £142,000 if you can, so you're ready to go as soon as you see a house.

Thank you for this @whereiscaroline there is a huge new housing estate being built about 2 miles from me which would be perfect but when I looked houses were over £250,00. I'll have another look into this one.

Thank you for your replies, I'm just feeling miserable about it all after scrimping for the past 3 years.

Google shared-ownership plus your town name.

Also Google "help to buy" plus your town name.

is the deposit you have already saved already in a lifetime isa? The government tops up the money in a lifetime isa by 25% so your 20k could become 25k - act quickly though, the tax year end is approaching and some isa providers require you to have opened the account by 1st March in order to process everything by 1st April.

We moved areas (left london completely) to escape the rent trap. Best thing we did. No help but there are loads of people stuck like we were and you are. The only solution we found was to leave and move to a cheaper area.

Are there any new builds near you? Help To Buy is a better option than Shared Ownership in your circs. The govt lend 20% and it’s interest free for five years, by which time you should be able to pay it back, or half of it by saving it or remortgaging.

A similar thing happens to us - I got unexpectedly pregnant and we had to put things on hold. In 2 years house prices went up 50% in the town we were living.

We ended up moving to a different town about 20 miles away. I was worried about it at the time but we've ended up very happy here. I did have to get a new job though which I'm still a bit bitter about!

We've met loads of people in our situation and there's many other couples and families that have moved locally for the same reasons. It's been sort of comforting to know that we're not the only ones, and there is a nice community where we are now.

We used the help to buy ISA to top up our deposit.

Good luck to you. House prices are insane and it's so frustrating trying to get onto the property ladder.

It's worth keeping an eye on new build developments as they invariably have to include a % of affordable houses. These are often built last and not advertised as prominently as the top-price houses, so it's worth getting in touch with the developer to see what's available. Good luck!

OP you are amazing and I am so impressed with you. So many people think they won't be able to buy and so don't bother saving at all. You tried and now you have £20k which is a fantastic achievement.

Others have given good practical advice which I hope helps you. We started out in shared ownership and now own fully (mortgage permitting!) and in similar circumstances where we didn't think it would be possible but saved anyway just in case. I'm so glad we did.

Keep saving because one day it might get you the house that you want. In there meantime look at shared ownership (Google help to buy) and see if that's an option for you. If you keep saving then anything could happen - payrise that will give you a bigger mortgage, coming into money somehow, you might be someone and decide to buy together one day. You just never know what the future holds. 10 years ago we didn't think we'd ever afford to buy a house or have kids and we couldn't even afford a car. Our salaries have always remained fairly average and we live in a very expensive area but we have saved really hard and gone without a lot and now have a house, 2 children with one on the way and a family car. I'm not saying it's possible for everyone but if you have the option to keep trying then do.

Just reread my post and apologies if it comes across as patronising. Really wasn't my intention at all.

We have just bought - after 6 years of savings. Same thing here, houses that we could have afforded a few years ago are now out of our reach.

We live in a hideous expensive area.

We have bought a flat - with private garden and private entrance - in this area and more importantly near school.

It has been hard going, no holidays, and a lot of the time in the last 2 years I thought it would never happen.

A lotof the incentives are not for people over 40, which I am.

We did look at shared ownership and signed up for it but it was 2.5 miles away from the school.

Spring is around the corner so more properties will come onto the market, sign up to all estate agents in your area and tell them what you are looking for, in the meantime you may be able to save a bit more.

Believe me, if we can do it, anyone can

I would recommend seeing a while of market mortgage broker. They have access to some deals not available on the high street and will know who best to place you with.

Lenders have their own assessment criteria and a broker will know who the more flexible lenders are. An offer on a house along with a 10 or 15k increase in mortgage could make a difference.

Keep saving in the meantime, good luck.

Massive well done for clearing the joint debt and working so hard to make your life better!

If you're buying your first house, could to look into the help to buy scheme? Im not sure how much it is but I think they might match your deposit?? Please check though because I might be imagining that!

Have a look on money saving expert . Com because there's a lot of info on there for buying a house

Yes, I agree with @DietCokeGirrrrrl. Ring around for potential new build sites, get in there fast, or visit existing ones.
All sites incorporate affordable housing. Best of luck Millie !

Sign up to the council housing list and then enquire if they have a DIY shared ownership system, ask housing officers what there is etc.

Aren't there any flats around? They tend to be cheaper than houses.

You just need to make the best of the budget you've got if you're dead set on staying in the area.

So I spent the last 2 years scrimping a £20k deposit

How are you saving an average of £830 a month as a single parent/running a house/paying huge debts because I want to know your secret!

That's amazing saving. Keep going, if is really impinging on you and the kids having a life halve it, an extra 5k a year we'll bump up your deposit and when you do get that mortgage, you will be able to cover a larger amount. You'll also be ready if the housing prices burst

Go and see a couple of brokers and see what they suggest. Ask for recommendations from friends.

Do you receive child maintenance, tax credits etc?

The other option is a flat keep saving and upsize in a few years. Not ideal but at least if prices are rising your flat should be too. Plus you are paying your mortgage so your debt is decreasing.

Could you look in a cheaper area? For example for our first house we looked in the city we both worked and rented in and couldn't afford anything but we found a lovely house in a town which was a 20 minute ride away on the train.