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!

@Ironmanrocks

😊 Not bad eh - I am slightly obsessed with searching for properties....wish I could do it for job!!!

To be fair, I found a few depending on what the buyers want - some really quite cheap but needing lots of work, and then some really decent ones.

Good luck OP!!

You’d need to read the small print if you wanted to look for houses as a job!

A lot of mortgage lenders are looking for 15% deposits at the moment so your deposit is likely to be the issue!

It's better to have the higher deposit as you will get much better rates.

I think you just have to think a bit more of the long game. At 30, no way I could have bought a house. I was still a student then. Just turned 40 and we should have bought our first house last year (unfortunately, just before we exchanged, our vendor had to pull out due to COVID).

The reality is though that to afford what we want, we have to move out of area (about 1.5 hours away). Dc will need to change schools. Dh will need to re-locate his business. I already have a long commute, but it won't necessarily be worse with moving (longer, but I'll go in the office less).

But I don't think you should feel hopeless. You're still young and have plenty of time to save and increase your financial security. We didn't have a penny of deposit saved in early 30s, but we're in quite a good position now. It does take being willing to make some sacrifices though and you may need to move to a more affordable area and also go up to FT work (we also balance school runs, etc with no help, but if you can work flexibly, it's very doable).

It always seems to be a compromise for those able to afford it. Most of my ancestors never owned any houses and had very happy lives renting for hundreds of years. However I certainly prefer to own as did my parents and my father's parents (my father's father was a valuer and estate agent which is probably one reason he was able to buy in Bishop Auckland.
My parents had two full time professional salaries ( teacher doctor ie NHS consultant) and put off babies for TEN years in order to do what most of us now do in the family - "buy before you breed". Same for us in the 1980s - two full time professional salaries - London lawyer ( me ) and head of department teacher him - both working full time; Daughter who has children the same - 2 full time professional salaries, bought before they had children. Same for the one hoping to marry in March if the law is changed on Monday - bought before babies and two full time professional salaries.

However don't give up. We live right out here in zone 5 of outer London because even in 1984 we could not afford anywhere as posh or expensive as Ealing never mind even further in. My son has moved to Oxfordshire for his second house as he wanted detached not terraced etc etc Compromises all the way.

OP If you have a £50k income and your rent is 'a steal' you should have money spare to save a decent deposit if you really are prioritising saving for a house.

Plus it sounds like you would qualify for a mortgage on a suitably sized property without having to move away from your jobs, family and friends, so you're way ahead of averagely paid people in more expensive areas like London and Home Counties.

Have you both got LISAs to top up your deposits?

You have to accept that you can't have everything unless you have a very high income.

You could have a home of your own. What you probably can't have is an impressive home in exactly the right area, while working part time, and possibly spending on other things that you could do without.

Do you have car payments or other credit for example? Just trying to understand why you aren't able to buy when your the numbers add up as far as deposit and income to value is concerned, which is the biggest hurdle for most FTBs.