Just can't get on the property ladder

[NoFrills01]

We have a DS at school, I've just got a PT job and he works FT our income is just over 50K we can scrape together a deposit of 25K if we beg parents for help.

Still we are struggling to get a mortage and struggling to find anything worth having, we have been stuck renting for years. We need to stay in the area as DS goes to a wonderful school and because of our jobs.

We are both over 30 and it feels so embarrassing to not have a home we can call our own, we have no family support (pre covid) to help with DS so we do everything ourselves.

I feel left behind, my friends all have lovely homes, and lives and we are always worrying about money and going without trying to save as much as we can so we can have a home that's ours, and a better future for us all.

Worried to get a new build and still don't think we could afford it.

Has anyone any advise? It's all I think about!

With that income you should be able to get a decent mortgage. Do you live in an expensive area? You have 2 choices - move to a cheaper area and travel to school / work or buy something smaller in the area where you already live with the intention of moving again once house prices rise and you can save up more deposit.

I think where you are currently geographically is an important factor to give so you can get advice.

I suppose it depends on what you think is "worth having" - are you happy to buy anything within your affordability range or have you got a list of requirements that don't match what you can afford? You might have to buy a smaller place or move into a slightly worse area in order to get on the property ladder, depends on how important owning property is to you.

The big question is what you mean by "worth having".
What compromises are you already making in your property search?

So you should manage a mortgage of £250k ish, therefore purchase around £270k with a bit over for legal fees etc.

Where do you live? The reality is that if you live in an area where houses are above this there’s not much you can do.

You say you can’t get a mortgage - what do you mean? You don’t qualify? Or don’t earn enough?

And there’s nothing embarrassing about renting.

We had to lower our expectations to get onto the property ladder, and then slowly work out way up to the property of our dreams.

It sounds like you might need to do similar

We are in Thanet Kent, but we do currently live in an expensive area, surrounded by villages although our rent is a steal. I think the only way is a new build help to buy scheme but the houses are still so expensive for a first time buyers

It all depends on how much properties cost in the area you want to stay in.

Could you afford a 2 bed flat? I assume you could as rental payments are usually a lot higher than mortgage payments.

Most people who get on the property ladder start with something very small and basic. They don't find a family house with garden as their FTB.

Very confused. Why are you struggling to get a mortgage? I got a mortgage based on a 1 year temporary NQT teaching contract that I hadn't even started yet!! Get a mortgage broker who will hunt out lenders who will have you.

With a 50k income, you should be fine. I kind of imagine the houses you are aiming for are bigger than you can afford.

If your rent is a steal and it's a nice property and long term then I wouldnt worry. Just keep saving and.invest your savings. I'd much rather live in a nice rented property than a tiny owned one

I just put Thanet, Kent into Rightmove price range £210 to £290 thousand and got 226 results.

@Chicchicchicchiclana I've just done the same! Don't know the area though so they may not be quite the right location.

Try Kingsgate Financial Services based in Broadstairs. They got me a mortgage when I didn't think I could get one.

In Thanet you can get amazing properties for under £270k but you might have to drive your son to school. How much do you want to own a house? What compromises are you prepared to make?

I was nearly 38 when I bought my first house. You've still got time.

For a first house you need to be looking for a starter property, it's unrealistic to expect to get a big family house straight off. What sort of house are you looking for? A two bed terrace or a two bed flat should be achievable. You could also think about going full time to boost your income. Part time is great but realistically 50k income won't get you very far. Could you work full time for a few years to boost your deposit and mortgage options?

The time realistically to get on the property ladder is pre children when you can work more. Also you need to be realistic as to a property as not many can afford their dream home in the ideal location.

You have the costs of a child and a part time salary which obviously is going to limit what you can buy if you live in an expensive area.

Why do you work part time? If you upped your income you would have a larger pot to play with. You cannot expect to own a home without making some sacrifices. Whether that is size of property or location.

You sounds like a friend of mine. She has always rented nice houses which she could never have afforded to buy, setting unrealistic standards for her own house purchase.
We started at the bottom, with an equity loan and bought a tiny 2 bed house. We made £100k on that 5 years later, and have since moved up the ladder twice. Everyone has to start somewhere; it's a means to an end and having a mortgage on a small house is far better than renting a bigger one IMO. I would suggest looking at what you can afford, and bring open minded about it. Good luck.

YANBU. We’re in the same boat- family could help loan us a bit of a deposit, but not much, and we have very little capital of our own but we are still saving.

Our jobs are really London centric; we want to move out but have a toddler so couldn’t both commute up to town all the week after Covid anyway.

Buying your first property in the south east is doable, but not if you want a (small) family home in the catchment of a good school near a train station.

I’m determined we’ll have moved before DS needs to start school, even if we keep renting. But it’s so depressing. We’re 35, in good professional jobs with lots of friends already buying their second or third property

It’s our own fault for not saving more in our 20s, but our jobs didn’t pay much then and DH went back to uni for two years... then the time got away from us.

I think about it every day.

I was 38 when I bought my first house - a two bed terrace. And that was 30 years ago. I really wish home ownership wasn’t the holy grail, we’ve obsessed with it in the UK.

Have you thought about buying a flat elsewhere and renting it out for enough to cover the mortgage whilst you rent where you are? Gets you on the ladder and you can sell it and buy a bigger property to live in once you're earning more or you gain some equity in the buy to let?

If the amount you pay on your rented house is a 'steal' in a good area it is highly unlikely that you will be able to have anything similar as a first time buyer. To get on the property ladder you will almost certainly have to accept a smaller/cheaper house than you are renting.

Try to focus on the advantages of buying. You will have more security in that your home won't be dependent on the whims of landlords. You can spend money making it your own through decor, new carpets ext without worrying that you will not have your lease renewed and all that money is lost. Any improvements you make, as well as making it the home you want, will increase your chances of selling later and may up the value.
Long term it is the first step on the way to the house your really want. Mortgage money is never lost in the same way rent money is. You can live in rented property twenty five years and all that money is paying off someone else's mortgage. It takes a long time to pay off a mortgage but when you do you have a very valuable asset.

You say you could possibly raise £25k deposit with some help. If you are putting down a 10% deposit that would give you £250000. If than is not much in the area you need to live in adjust your expectations and be a bit imaginative with what you can do. Possibly go for ex council, a flat or a small terrace. New builds can be small but are usually very well designed, making optimum use of space and storage.
Watch the market. The biggest mistake can sometimes be waiting and waiting until you can buy exactly what you want. All the time you do this you are paying rent and prices tend to move upwards. Good luck op.

You can usually borrow up to 4x your salary. Most banks have an online mortgage calculator which will give you an idea of what you may be able to borrow, although you won't know the actual amount until you make a proper application. I just put 2 people with a joint income of £50k and no credit card debt or other loans into one of the high street bank's calculators and it came back with a possible amount of up to £237k.

As a first time buyer, you won't have to pay stamp duty on properties of up to £300k.

Personally i would speak to an experienced, independent mortgage broker, as they can give you advice about whole of market options (rather than being tied to a specific provider), tell you about the process and which banks are more likely to approve your application. Don't lose hope, you have plenty of time, and there are options available.

If your son is already in his school, you can move to a house outside the catchment area without withdrawing him.

And if you are first time buyers, you do have to be prepared to move into something much smaller than whatever you can afford to rent.

Why don’t you work more hours?