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.

With an approach like that op you are going to get there. Good for you. Great idea to get the house. It gives you stability.

It absolutely is doable! The default will clear off your credit file in 6 years if it's been paid off, you will definitely be able to get credit in the future if you are careful. Plus savings are a positive! Keep going - you can do it x

Of course you can and a big well done. I would keep saving and have an appt with a broker they should be able to advise re the credit rating and best deals for you ect. Someone I know partner bought their house alone he is a high earner but couldn't get as high mortgage as expected as was buying alone and her and the child were added as dependants ( I would ask broker if there are any issues around buying alone eg higher deposit ect ). When we applied they took into account benefits aswell so if you get child benefit and tax credits that counted as part of our income (not sure if this is the same everywhere but again broker can advise ). The other thing to mention is you will need to pay for searches and solicitor fees ours all in ours cost about 1500 so I would find out what deposit you need then aim to save more for fees. Also it's probably advisable to have a bit extra you will need to buy the essentials for moving in ( obviously you dont need everything and we are still doing ours up bit by bit slowly ) but if you need to buy fridge / washer ect. I would then try and make a plan so say you need 10k for he deposit then save for another year for fees and to have some savings behind you. At the rate you are saving now that would be 4 years if you need less deposit obviously it could be sooner and if you get this promotion could be even sooner. I also agree re electoral roll and seeing if you can get a phone contract these both help with credit ratings Good luck you sound very determined and tour little ones is looking to have many looking out for their future I'm sure you will both be very happy in your future home.

I have to reiterate what the other posters have said. Absolutely ignore your mother, she should be real, really proud of you.

You sound very realistic and determined. Just keep saving, sign up for a really low contract phone which will help your credit score.

Well done and keep going, your child will be very proud and you are setting a great example.

Look at help to buy, lisa and shared ownership. Matin Lewis money saving website is good. Follow your dream as far as you can.

Just to let you know OP if you are seriously considering a Help To Buy ISA then you need to open it before November. They are stopping people opening new ones in November but you can still pay into and receive the government bonus until 2029. You can pay upto £1200 in the first month and then pay in £200 a month after that.
They are a really good idea, I've just opened one too!

Well done you, I know others have said but get a HTB isa, they end in November but you can still save into them Also look at a c/c to build your credit rating, use through the month for day t day and clear every month. Good luck you are doing so well

I improved my credit score very quickly from very poor to fair by using a credit card and paying off the full balance. I was the offered a lot more credit on it which I took. The idea being trying to improve my credit score through this strategy rather than use the credit card itself.

You can definitely do it I’m 36 and have saved about £10k across my entire lifetime so far .

I would say though - unless you go fro a sub prime lender who will require a larger deposit and also rates will be higher, the default on your credit file will discount almost all high street lenders until it drops off which is 6 years. If you can pursue that as fraudulent then I would.

I’m not sure it’s worth getting a credit card to build your rating until the default is gone to be honest. Lenders don’t generally check your credit score just what’s on your file.

@covetingthepreciousthings I live in Birmingham and I'm looking to buy soon. I've seen 2 and 3 bed houses going for under 100k.

Op that's amazing resolve your showing there. Belive it or not 'resolve' and commitment is something people can be scared /jealous of.

Resolve and commitment above all else is what makes things happen and many people are too nervous to make things happen.

Ignore ignore ignore dream crushers.

It's also easier to cut back now whilst your dc is small.

I think you'll get a break. Be proactive about the credit file and argue and get it removed.

Money saving expert has good advice fie those with poor credit and what to do.

Start looking more at houses.

Definitely doable, and I'm full of admiration for you for wanting to do this.

Ignore your mum and anyone else who says you can't - all the evidence at the moment says that you will!

Definitely look at government schemes - not sure what's available right now but no interest rate will match 25% bonuses and the like.

As an aside, I saw someone mention that ISAs are the only way to earn fax-free interest, but you can now earn up to £1000 (I think) a year in interest from any account, tax-free.

You're brilliant OP! I work in the Welsh valleys and there are some great little terraced houses around, for sale. Keep doing what you're doing and you'll have so much choice when you're ready to buy. Don't forget to use cashback websites when you buy things online, to help. (Topcashback is a very good one.)

You are doing exactly the right thing OP - well done you. Don't let your DM put you down.

If I could make a suggestion - take a look at matched betting. It's not betting in the traditional sense because you can't lose your money. There's a long thread on the Money Matters Board on here which will help you get started. It's not a long term thing but you could make a couple of thousand pounds in a few months. It's quite hard to understand initially and will need some time to get your head around it but it would boost your nest egg significantly.

I am 100% positive you will get your house either way, very best of luck to you.

Another handy saving tip.

I’ve set up a save the change via my bank account. It rounds all transactions up to a round £ and I’ve saved £160 in under 3 months.

That’s in addition to actually saving as well.

Think my calories might be a bit higher than this but I guess nothing is 100% accurate.

Hope everyone is having a nice weekend:)

A lot of people are recommending a help to buy isa. They’re good (I had one) but are being phased out and replaced by lifetime ISA’s which are better because you can save more money each year and aren’t limited to £200 a month.

www.moneysavingexpert.com/savings/lifetime-isas/

@Surprisedmom second that - I've got the LISA deffo the better option x

You can do it! 💪🏻

singlebutmarried I have seen third party apps to do this, but I'm not keen on it not being my actual bank. Which bank will do this for you?

Of course you can. We bought a house for £185,000 with a 5% deposit which was just under 10,000.

Also regarding the default on your credit file, prior to contrary belief you can get them removed IF the lender agrees. I had Vodafone put one on my account when I was much younger (I was stupid and naive and thought that after the contract it just ended without me needing to inform them - I cancelled direct debit which defaulted the credit agreement) anyway, when. I came to get a mortgage I had a default which really negatively impacted my credit rating. I begged and pleaded with Vodafone to remove it, and they agreed. It took about 7 days and my credit went from fair to excellent.

Just something to think about - not sure if all lenders can and will do it or just some but maybe writing to them directly and explaining it was your ex - maybe they can help.

Absolutely you can do it!! Try to find as many ways as you can to make extra income and keep on saving.

Also sign up to martins money website for saving tips/ ways to make little changes!!

You realise how little money you can live off weekly really after all bills are paid!! Last week I spent no money at all, I cycled to work and brought my lunch every day and cooked dinners out of what I had in the cupboards 😂

Well done! Don't listen to your mum.

You are doing fab! Yeah, maybe there will be a few set backs with unexpected expenses but with the mindset you have you will get there! Good luck OP!