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.

Op to improve your credit score get a credit card, use it regularly for your food shopping etc, and pay it off in full each month without fail.
It shows your ability to manage your money. Keep increasing your limit even if you never use it...just remember to NEVER be behind with a payment. It is one of the best ways to improve your score.

OH and of course you can buy your own home, and secure your future Good luck

Don’t listen to anyone who says you can’t do it. If you are looking to buy in the Welsh valleys it really is doable. My friend recently sold her father’s house for £40.000. The person who bought it gutted it but it was very well kept, just a bit old fashioned. Good luck.

Go for it! You're doing so well so far. Definitely have a look at Help to Buy ISAs, the government tops up your savings by 25%, it's basically extra money for free!

Help to buy isa isn’t just for new builds op, alternatively you could save in a LISA. Call in your bank and speak to them although for LISA have a look on Martin moneysavingexpert.com

You absolutely can do it!

I’d go and see a mortgage advisor now and get an idea of the amount you can borrow. Then keep looking! I reckon the next year or two might be a good time to buy.

Don’t discount flats either. You can often get a big space for less money, and sell in a few years and upsize.

I saved all my student loans and bought a 40k flat. Best thing I did.

Of course you can do it. Don’t let anyone tell you what YOU can do, only YOU know what you’re capable of. By the sound of it, you’re on track.

I did the same thing.
First, I opened a help to buy ISA. Basically, you save regularly into this account and when you get to £5000, say, instruct your solicitor to use that as a deposit. Because it’s used to buy a house, the government adds 25% of the sum you already saved. So, £5000 turns into £6250 just like that. £10000 saved turns into £12500 the minute it reaches the solicitor.

I bought a new built, but I know my stuff. I hardly have the heating on. Ever, even in the depths of winter, I might put it on for an hour sometimes, but that’s it.
I also don’t pay for sewage water, it’s a system that disposes of the waste water straight into the ground.
I pay very little, almost no electricity, we have solar panels. So it works out cheaper in the long run.

I’ve done all this on my own, as a single mum. It can be done.

I have an Accord mortgage due to having no credit (DH had it all I was just a low earner) they are owned by Yorkshire Building Society and I found them fab (some people years ago on MSE forums disagree) just renewed our deal after 3 years to a slightly cheaper rate fixed for 5years. Do look into the ISA it is just a way of saving. Also look into schemes where house prices reduced to encourage you to stay in area. Mse forum is brilliant! Good Luck

You can definitely do it. Thst is an amazing amount to save in not very much time.
Go for it! And don't listen to the doubters, can't believe your own mum said that!
What a great attitude you have.

You’ve already achieved a fantastic amount in a year. Keep on saving! You will be able to do it, but don’t let that be the limit of your ambition. You can achieve even more!

Depending on your income have you looked at the help to save scheme run by the government.
You could save in that first then move it to the help to buy isa.
You could get lots of money for free by doing this.

I just wanted to say how impressive I think you are. Strong, focused and determined. You are doing so well - don’t be discouraged.

@OrangeCinnamon I agree with you. No issues with them whatsoever and they had great cashback offer when I was buying.
New fix was done online in few clicks. Easy peasy

Yes go for it op. get a mortgage broker and he or she can work with you to improve your credit rating as well as finding the best mortgage for you.

You have great aspirations and I'm sure you'll have the keys to your own home one day with your attitude. Lots of good advice on moneysavingexpert (link below and sign up for the newsletter if you dont already) on rebuilding up your credit score, there's even an article about how paying your rent on time can boost your credit score. Best of luck to you. www.moneysavingexpert.com/loans/credit-rating-credit-score/

Yes! You can do it!

We decided to buy a house 3 years ago and had to save fast, the rent was too high and I was pregnant in a house that didn't allow small children. We used the help to buy isa with Halifax. It really helped us, it topped up our deposit and paid off the full solicitors fee.

My dp credit score was 3/5 so not good but not bad, he got a credit card and used it for food and petrol and paid it off at the end of each month. 6 months later the credit score was 5/5. We did put our names on the electoral role too. Now we pay £400 for the mortgage instead of £700 towards somebody else's, It's the best thing we've ever done and I'm sooo happy not to have to deal with snarky estate agent emails every month

I think you've done amazing saving so much. Imagine how much you will save when you get the pay rise! Theoretically you could put the whole pay rise in to savings and you'd easily be able to buy. The mortgage will be small if you can't buy it outright. Keep saving, don't listen to your mum I don't know why she would put you down about it.

I'm sure you've looked into them but this is useful to explain the help to buy isa's

www.helptobuy.gov.uk/help-to-buy-isa/providers-in-the-scheme/

Of course you can do it! And possibly quicker than you think, you sound very sensible. Go and speak to a mortgage adviser.
(Also wow I can't believe you can get properties for 50k that's fantastic!) keep us posted when you get your house

OP, you sound absolutely fantastic. Keep going. It will be so worth it. If you were my daughter, I would be so proud of you.

Sounds like you have a brilliant savings ethic. Definitely look into shared ownership options with your local housing associations or council too, and get independent financial advice.

Try not to let anyone put you down, they're likely envious of how hard you are working for yourself and your DD.

Hello we purchased a house last year with a 5% deposit the house a mid terrace three bedroom our deposit was seven thousand five hundred. Normal high street mortgage lender too so its definitely doable just bear in mind the all the extra costs involved solicitors fees surveys etc. We did it on a shoe string really and have needed to borrow money to sort out windows new boiler etc problem with cheaper houses they can come with issues though to be honest any house could.

save as much as humanly possible as owning a house that needs a bit of work with kids around is a nightmare 🙄 our house is still not near where I'd like and I feel abit like I've been polishing a turd lol buy hey we are home owners! Good luck

Electoral roll makes MASSIVE difference. I can see it on my and DH's credit score. He is not on.

I don't know if it is all over UK now, but I just got my reminder to re-register/confirm. So do it.

Good for you! I really admire you and your attitude and I think you’re a great mum doing the best for your little one and being a fantastic role model! 💐☺️🏠x

@Greymoon2016 I am 3 years in, have no DC and still not finished😂
Every house is a project imo

I'm not an expert but if you buy a £45k house with 5% deposit you will need a mortgage for £42,750. If you get a pay rise to £18/19k then it's possible you can get a mortgage for that (possibly even on £14k) and you already have the 5% saved so now it's just a case of saving for the solicitor fees. So in theory you could do it next year - check the default I think it drops off after 6 years.

You may find the 5% deposit mortgage payments high but you could remortgage in 2 years time and you may even have 10% equity.

On the downside you need to consider if anything goes wrong then it's down to you to sort it. When we moved in we found little bits needed doing which we hadn't budgeted for so you may want to save a bit more so you don't move without any savings.

It's definitely doable though. Has your mum ever owned a property? My friends mum never owned a property and got very jealous when she bought her first home and was quite negative about it.