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.

Good for you!
We bought our house when i was 22, DP 24, we saved 10% deposit, bought our lovely little 3 bed semi for a very reasonable price and we'll be mortgage free before we're 50.

I would be wary with a help to buy, If i'm not mistaken, you wouldn't be able to sell/move until you pay back the loan, and that has to be paid before you can sell the house. Happy to be corrected if i've got my wires crossed, and guessing it may not be an issue if you planned on living there for life.
Whatever you decide to do, you clearly have your head screwed on, positive thoughts breed positive results!

This is exactly how people buy houses! I didn't have kids when I did it, so saved my deposit by working shifts in a pub as well as a day job. You have a child so it might take you a little longer, but you are realistic about that!
I started out in a miners terrace (not in Wales) and eventually used the equity in that to buy a gorgeous, bigger house in a nicer area. But that terrace was one of the best decisions I made. I did training while I lived there, got a professional job, had a breakdown - and could pay the mortgage from agency work I picked up. It feels so freeing to have a house to your name (even if the bank still really own it!)
Don't think it is 10% or buy outright. Lenders look at loan to value ratio, for example if you only borrow 75% of the value of the house, you are deemed lower risk, so get a preferential interest rate. So if you get turned down first time, keep trying. You might need to use a mortgage broker if you aren't the banks first choice, there are loads of niche lenders (heard on the radio some are granting people mortgages longer than their life expectancy, so someone with the grit to save well on a low income must be a better option than that!) Good luck. And ignore people telling you what can't be done. You've shown that it can, so you just need to keep at it!

Of course you can do it! You have the right attitude and are saving at a steady rate. I've nothing constructive to add, I just wanted to wish you luck.

It takes 6 years for a default to drop off your record-we had an iva and my credit score is good now after it was cleared off

keep saving i think the government help with any first time buyer now suject to deposit

Taking a mortgage out by yourself, you might need a bigger deposit than the 10%. I’ve had a few friends who have needed a 40% deposit to get a single mortgage. That’s not to discourage you, more of a don’t be discouraged if you need to save a bit more than originally planned. It’s not always the case, some of it depends on area and cost of the house, so those things will be in your favour.

The help to buy ISA doesn’t exist anymore, it’s been replaced by the lifetime ISA. We had the help to buy ISA and as others have said it was useful. I’d go ask your bank about the lifetime ISA and how it works and set one up if you think it’s right. If the lifetime ISA isn’t right for you, you still need to set yourself up with an ISA. That’ll mean your savings aren’t taxed, we’re only talking small amounts that you would be taxed but it’s still better in your pocket.

Have a look at shared housing. It’s a form of social housing and you would own part of the house and pay rent on the other part. Your deposit is therefore bigger because you have less money to borrow. If you do a 75/25% split, you would pay 25% of the housing association rent rate. With some schemes you can also save up in chunks to buy another 10% of the house meaning you eventually own it all.

@Silenttype I think that kind of help to buy is different from the help to buy ISA

OP you can absolutely do it! If you’re looking at ISAs I would look into the Lifetime ISA - similar to the help to buy ISA in that you can use it for a first house purchase, but I believe the bonus is a higher percentage.

Taking a mortgage out by yourself, you might need a bigger deposit than the 10%. I’ve had a few friends who have needed a 40% deposit to get a single mortgage.

She may, but with cheaper properties she probably won't have to. I bought by myself without an issue with 5%

Absolutely! You can do it. Don’t be put off by anyone. You are already showing you are willing to make sacrifices to save.

I would say go and see an independent financial adviser. Many of these people’s advice is free. We sent our son to one to prove to him he could buy his own house instead of renting. He was 21 when he bought it and has four years left. Many of his friends are just buying now.

Make sure you get a survey buying a house that you can do up a bit at a time means they are cheaper because lots of people don’t want to be bother. I spent weeks hand stripping the skirting boards because we found someone who was doing up his house and to help the cost offset some by stripping doors at the same time as his. They looked fantastic and then I hand waxed them all. Eight!

Yes, you can get properties in the north for £50,000 too.

I think you sound determined and strong OP and you can do this!

Definitely agree with the help to buy ISA BUT just a note- they’re stopping in November so if I were you I’d open one ASAP so you don’t miss you.

@Silenttype I'm not sure what you mean in regards to the help to buy ISA? The govt one isn't a loan but a bonus that your solicitor applies for on your behalf once you're ready to buy. There was no strings attached for us. I've just put the OP's amount in to it and she would receive over £600 bonus, however she can keep putting money in and keep raising that bonus until she's ready to buy. The maximum bonus you can get is 3k.

Well done on the saving! I'm in awe of your willpower!
I'm in the similar area as you and the deposit amounts sound about right. I'd definitely get a help to buy ISA, so that's another 25% of what you save (I think, with Halifax it was at least), also there are still 70/30 mortgage schemes for first time buyers, loads of options, but of course the more cash you have the more options. Good luck! You'll feel so proud when you get there!

You're doing great and are well on track! Make sure you do a budget for things like solicitor's fees, survey, moving costs, things you might need for the new house, as well as the deposit itself. But the main thing is planning and motivation and it sounds like you have both.

Around here £50k would probably get you a bathroom, but it would be a crappy one with a 70s avocado suite .

Well done OP - seriously, I would be a very proud momma if my DDs did what you're doing. Go for it!

I bought a house as a single parent, its totally doable! Keep saving, get advice on clearing your credit history, when you're ready approach your own bank first. Since buying my house iv become a dab hand at DIY, YouTube tutorials are a godsend. Keep saving, you're doing great!

Like pp says if you get tax credits use help to save your savings will be doubled up to a threshold.
www.gov.uk/get-help-savings-low-income

Believing you can do it is the first step!
Ignore the negativity and keep working towards your goal. You will get there.
X

You can do it.
Don’t let the naysayers put you down

I'd highly recommend Premium Bonds as a deterrent to accessing your savings. You also have the (remote) possibility of winning £1,000,000!

The key with these is that when you go to withdraw the money (which is simple to do, should you need it) is that it asks you if you want to defer it until the next prize draw (which is around the 2nd of each month). This really makes you question what you're doing with the withdrawal.

The help to save scheme run by the government means for every £1 you put in they put in 50p.
It’s only available if you are on a low income but it’s worth looking into.
You can put upto £50 per month in for 4 years and they pay the bonus after 2 years then again at the end of 4 years.
If you open the lifetime isa now and put a little in each month and you qualify for the help to save scheme you could withdraw it in 4 years then put it in the isa.
You could get 1000s for free.
Make yourself a 5 year plan and stick to it.
You’ve got a great attitude and if you stick to your plan you will get what you want.
Good luck

Op you have a really fantastic attitude. Your mum is being short sighted not to be proud of you. Your dd certainly will be as she grows.

Best of luck OP, I admire your attitude and determination. Don't let what your mum says break your spirit.

I’m so impressed by you OP, from everything you’ve written. I absolutely believe you will do it, don’t let anyone tell you otherwise. You sound like a wonderful mum.

I'm echoing many others but you've done fantastically so far and you can definitely do this. Aspire to achieve what you want and don't let others make you think you can't. Although it may be tough now, think about the stability you can give your DD in the future.

Well done, good on you. Keep it up. Good to see someone so determined to do better in life.

Brilliant OP

You are doing a cracking job and you WILL get there! Just keep doing what you are doing and look into some of the savings schemes around.

When we were saving we chose a current account with a high interest- sometimes they pay out more than the ISAs. When you get your promotion try to put that extra money aside and carry on living on the salary you were managing on. My Husband and I lived like students while we were saving but it was worth it and we enjoyed shopping for nice things for our home when we got it.

You are amazing - just keep being amazing!
Good luck :0)