To think I could manage to buy a house like this?

[YDraig]

Hi,
I’m quite young and have a child. I don’t have much money but since moving into my first flat of my own I’ve tried to save a bit each week.

Some weeks this is £100 and some weeks it’s just £20. I do work as well as getting some child benefits. Over the last 13 months I’ve managed to save very close to £2,500.

Im constantly cutting back on things and trying to get extra hours in work and I’m up for a promotion this year as well, week to week I spend as little as possible. I really want to try to buy a house in 5-6 years, either by a mortgage (when my credit file isn’t shot) or maybe even if I manage to save enough, buy outright but I know that’d be loads harder. Either way I do it I’ll need a lot of money, at least £5-£10k for a deposit and thats without other expenses. I might not be able to get a mortgage as my DD’s dad took out a £500 loan in my name and defaulted I didn’t know until debt collectors were involved. He had hid the mail. I’ve paid it off now but it’s still dragging my score down.

I was chatting to my mum about it hoping she’d have some advice and all she’s done is put me down saying that I’ll never manage it and “something will crop up” eat my savings and send me back to square one. I read on here ages ago that unless it’s life or death treat your savings like they’ve been spent and aren’t available anymore. That’s what I’ve been doing and I’ve never touched them. But now I’m filled with doubt and really unsure I’ll ever manage anything. I really didn’t expect my mum to be so negative

I really want to have my own home because we moved around loads when I was a kid, my parents are poor and don’t have much. So i shop at Lidl, meal plan, walk to work rather than bus, never buy anything brand new, no TV package etc. My life is very basic because I wanted to maximise how much I could save even if it was only £20 some weeks.
Am I being totally naive to think I can manage it? I don’t actually know anyone who owns their own home at all so most of my info and knowledge comes from googling.

Look at the ISA options available to you as well, OP - if you're a first time buyer the government will contribute when you save www.youinvest.co.uk/lifetime-isa?gclsrc=aw.ds&ds_rl=1118883&ds_rl=1118883&gclid=CjwKCAjwkqPrBRA3EiwAKdtwkyA1jYZY3PrxcX8qSA8aRuHKzDEZvyhVxT7Ol29MhGvK739b9Q3sHBoCizoQAvD_BwE

Well done. You'll get there and your credit rating will improve each year as you're doing everything right. Keep paying on time and if you have anything on credit pay that off first.

Have a look at look at debt advice on money saving expert as I believe there is advice about improving your credit score and also checking what it is.

You definitely can - certainly in the area you are in.

I would be looking for a newish, small semi if I were you. With 10 to 15 k saved over the next 5 years you could easily put a 10% deposit down.

A newish property should require less maintenance and have better insulation so be cheaper to keep warm. In 5 years the old debt won't count any more.

You're doing brilliantly - keep on saving and tbe money will keep mounting up. Yes, some costs might crop up that eat into your money but for people without savings, those costs often create debt, so you'll still be one step ahead. It's often recommended to have an emergency fund (separate to your savings) for those unexpected expenses, though you sound like someone with a good grasp out your outgoings so you can probably plan ahead for most things.

Do keep reading up on managing your money - there are a lot of personal finance blogs and websites that will help you with ideas and confidence. Good luck!

@YDraig oooh. I just and a quick look and there is loads available for very good prices. Obviously I mean 20 miles from what wiki told me is Welsh Valleys - Cwmparc.
Are you a first time buyer? You will be able to put down only 5% if your wages fit into the brackets for the mortgage. Obviously the bigger deposit the better.
I went for 5% with bit higher interest for 2 years. After 2 years I already paid some off so interest is now low.

Have a proper look for the best saving account. Money saving expert has loads of tips and info.

OP just save for now dont worry about the mortgage thing. You 100% will be able to get a mortgage especially now the default is cleared. I'm an experienced mortgage broker and I've been able to get everyone I see a mortgage except those currently bankrupt or in an IVA. You'll be fine but just save for now and worry about the mortgage bit later.

I’m probably older than you, but I saved for 10 years and bought my house at 30. You just have to put your mind to it and you can do it!
You have made a really good start already by the way. Don’t let people put you off.

Well done for saving, it will definitely be worth it and you have a strong reason to keep saving which should keep you motivated! As someone else mentioned, you should consider putting your savings into a help to buy ISA, the government will give you a bonus when you are ready to put your deposit down on a house, which could mean you have enough deposit sooner. Keep going and good luck
www.helptobuy.gov.uk/help-to-buy-isa/how-does-it-work/

Keep doing what you’re doing and find a sideline to help boost your savings. Moneysavingexpert is really helpful in this regard. You really have to take the view that every penny matters. Some obvious stuff but easily forgotten - turn off lights, turn down the heating, check deals for bills and insurances annually, do a car boot annually to clear clutter, batch cook, only buy clothes in sales or second hand, etc etc. I also save £2 coins which gives me around £100 a year - not much but it is £100 that would disappear otherwise.

Do you know your credit score?
How long ago was it? It may be gone in couple of years. Also Accord Mortgages are apparently more friendly to no t perfect credit score and borrowers.
Save up few hundred extra and get a mortgage advisor. Best money I spent.

Yes, you can absolutely do it. You sound fantastic 😁

What are house prices like in the area? And how much do you earn?
We had to put down nearly a 50% deposit to purchase our house as our wages at the time we’re pretty poor
I think if you can save like you have been doing then you’ll manage it. Mortgage repayments are usually cheaper than rent payments

I last checked my credit a couple weeks ago I can’t remember the exact score but it was in the lowest band “very poor” I’m thinking of switching from a pay as you go phone to a cheap contract though, same price or cheaper but apparently improves your score slowly

10% is definitely the standard deposit. Aim for that. Also budget for stamp duty (which you can google) and solicitor fees (you could always ask a local firm for a quote). It sounds like you are well on your way!

Also, get anything you can on credit. Sounds like you’d be sensible with it so I don’t think I need to say that. Any credit cards, store cards, even furniture on tick. This will help your credit rating.

Good luck OP!

Well done! That’s honestly an awesome amount to save in such a short time and your attitude towards it is brilliant! Most ppl struggle to consistently save.

My partner had a default on his file from an ex also but the lender wasn’t too fussed as it was a certain amount of time ago, not all lenders are the same so don’t let it worry you too much, just ensure to keep your credit as good as you can now.
I bought my first house with a 5% deposit a few years back.

Keep doing what you’re doing and your mum will be eating her words in a few years when you pick up the keys to your own home!

You wouldn’t be paying stamp duty on a 50k house btw so don’t worry about that.

I’m looking at houses in the £35-55k range (hopefully about 45k though) and I currently earn £14k ish per year I’m always trying for overtime though and will hopefully be getting a 4-5k payrise later this year 🤞🏻

Well done you. Keep going snd you'll do it.

I don't know what's wrong with your mother but part of being s grown up is understanding sometimes our parents can be deeply flawed human beings.

@YDraig are you on electoral roll?
Creditkarma is free or if you are willing to pay Incan highly recommend checkmyfile. The latter was really detailed.

One of the things that affects your score is the age of the credit account, so although taking a new card wouldn’t help straight away it would help as you keep it over the years.
So don’t chop and change, get a credit card with a small balance if you can, get a contract phone etc and keep them, only if you can afford of course!

@YDraig standardly you could get about 4-4.5 times your annual wage afaik. I was even offered little bit more, but my credit score was good.
You will cross that bridge when you get there.

Keep saving, keep an eye on a market and you will get there.
Imho well before 5-6 years😉

You sound so determined OP. I have saved in the same way to you - little and often. I hold it in a savings account with high interest, but if I remove the money I lost the interest rate. I visually don’t include the savings in my spending pot and it has worked wonders.

You will achieve your dream. But also look at credit building credit cards. They aren’t like a normal credit card as they don’t give you credit but you top it up and use it in the same way. They are very good for credit building.

Ignore all the people who doubt you - you will get there!

You're doing really well to have saved that much already! Don't let anyone put it in your head that you're being daft trying - you're not.

I just found out my ex bought a house and he has a horrific credit score, so it must be doable as he also has low income.

Good for you OP. I apologise that I am posting without any constructive advice to offer you. But I am just so impressed with your mindset and determination that I wanted to wish you all the best. I actually am fully confident you will manage it because you are doing all the right things and are so sensible. I really wish you every success for the future.