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Original poster

Should I just give up on the idea of buying a house?

174 replies

radiateforme · 16/05/2021 23:07

17k soon to be in the bank. Income of 25k per year. Have recently been in a situation where I've afforded 800 a month rent, plus 1000 childcare fees and bills etc. Bit of help from UC. Now live with family member to save a bit more. Feel like I've spent the last 10 years working my arse off, being frugal, saving, driving a crap car, and STILL cannot afford a house. The cheapest 2 bed near me that's suitable is around 160k. And that's a doer upper. According to the bank I can borrow 100k. Deposit of 15k, still 45k short. It's hopeless isn't it? Feel like it's just going to get worse and I'm better off just living my life, saving a bit, going on a couple of hols and getting a council flat (if I'm lucky). Feeling defeated as you can probably tell.

OP posts:
Bloodybridget · 17/05/2021 08:09

Oh maybe I misunderstood that, @Aria999!

Original poster
radiateforme · 17/05/2021 08:12

[quote V0lcan1cV1ew]www.rightmove.co.uk/properties/106463450[/quote]
A random house in Crewe?

OP posts:
RandomMess · 17/05/2021 08:13

Please look into shared ownership as at least it's a secure tenancy and you will own a chunk of it.

Thanks
dottiedodah · 17/05/2021 08:14

You have got yourself out of a DV situation and have a 2 year old. Thats a really good move you have done for both you and DC.Please do not feel despondent ,you have a better life ahead of you now .What about a 95% mortgage? Would that be affordable at all .Also maybe look at another area .Sometimes a big drop in homes only a few miles apart. We used to live in a rural area ,and I didnt like it as we were so far out and I didnt drive then .Moved to the "burbs"Life is lots better and cheaper housing to boot!

A1b2c3d4e5f6g7 · 17/05/2021 08:15

I know it’s a horrible time now, living in one room with a toddler. But what jumped out at me is career progression potential, and reduced childcare! I’d keep saving because if you can get through this period, you could well be able to afford something in a couple of years when you can save a lot more a month. I don’t know about the equity or how long that would take to get back, but hopefully you can get something from that at some point soon.

JSL52 · 17/05/2021 08:19

Did you say you were in your 30s?
What about a longer term mortgage? As others have said ,shared ownership or help to buy.
Good luck.

A1b2c3d4e5f6g7 · 17/05/2021 08:21

Also a one bed is an option potentially. We live in a one bed, to get onto the ladder. If you can get a big enough one that you can subdivide the bedroom, that could be an option for a few years until baby gets older.
Well done for saving so much!

KingdomScrolls · 17/05/2021 08:25

For our generation having children before buying anything makes it very difficult, in particularly on single income. I started in a shared ownership keyworker flat, made a good profit on it which gave me equity for the next step. Don't discount flats.

Calmdown14 · 17/05/2021 08:26

I get it feels never ending but you are in a better position than you think.
If childcare costs come down in January then I'd say that timing is pretty good. Your current LTV is 89.4 per cent. If you can save another 7k it will go down to 85 and you'll get better mortgage deals.
The covid housing bubble will probably have ended by then and it's a less popular time to buy so you might get a better deal.
Don't be scared of something needing work (within reason). A huge amount of cosmetic work is pretty easy and you sound an organised person who could deal with materials and trades. A mortgage will cost less than rent in the short term. Don't give up when you've worked so hard

TheYearOfSmallThings · 17/05/2021 08:28

If you are likely to get a decent council house in your area, I would absolutely do that. You may be able to buy it in the future, and in the meantime you would have a secure home and no worries about expensive repairs.

I would ensue I didn't have more than £16k in my accounts, which would probably happen anyway with the costs of running your own home and enjoying a reasonable quality of life.

Basically unless your salary is likely to shoot up (in which case buying would be better) I would prioritise a comfortable secure home and good quality of life over ownership at the cost of extreme frugality for years, and with the risks of home ownership.

Original poster
radiateforme · 17/05/2021 08:29

@KingdomScrolls

For our generation having children before buying anything makes it very difficult, in particularly on single income. I started in a shared ownership keyworker flat, made a good profit on it which gave me equity for the next step. Don't discount flats.
I didn't have children before I bought. I bought a house with my ex, had a child and was forced to flee because he abused us
OP posts:
Original poster
radiateforme · 17/05/2021 08:30

I am reading all the suggestions thank you all!

OP posts:
BloodyTinaNextdoorAgain · 17/05/2021 08:31

If you've been saving for years and will also get 17k soon then you should have a decent chunk for a deposit from those two things.
You haven't answered people mentioning the help to buy schemes, or shared ownerships. Will they not help you out at all?
I think the "random house" as you called it, was to prove there are cheap properties around but they may not be the area you wanted. We don't know where you are obviously, so can't help with locations but just looking at the next town over is sometimes worthwhile. Even with travel expenses considered

Poorlykitten · 17/05/2021 08:31

Have you looked at ‘help to buy’ schemes?

Fluffyslippers123 · 17/05/2021 08:34

As I’be been in a similar situation, it may help to know that if you have equity from the sale of a home then it’s discounted from UC calculations for 6 months I believe. That should buy you some time without affecting your entitlement to other help, nursery costs etc until your DC is no longer costing a fortune in fees!

Original poster
radiateforme · 17/05/2021 08:34

@BloodyTinaNextdoorAgain

If you've been saving for years and will also get 17k soon then you should have a decent chunk for a deposit from those two things. You haven't answered people mentioning the help to buy schemes, or shared ownerships. Will they not help you out at all? I think the "random house" as you called it, was to prove there are cheap properties around but they may not be the area you wanted. We don't know where you are obviously, so can't help with locations but just looking at the next town over is sometimes worthwhile. Even with travel expenses considered
They're both things I'm looking at but are not ideal and don't fit the housing market at the moment where I am. Hopefully things will change in the future when there are more houses on the market. I'm looking within 15 miles of my workplace. I absolutely won't move to another county. My family are here. I suffer with anxiety and depression and they help with occasional childcare. I can't be isolated again. The only thing keeping me going sometimes is my wonderful family.
OP posts:
user1471457751 · 17/05/2021 08:35

@HugeAckmansWife a previous poster suggested the OP give the money to someone she trusts for safe keeping so she could claim benefits as her savings would be under the limit. That is fraud.

Original poster
radiateforme · 17/05/2021 08:35

@BloodyTinaNextdoorAgain

If you've been saving for years and will also get 17k soon then you should have a decent chunk for a deposit from those two things. You haven't answered people mentioning the help to buy schemes, or shared ownerships. Will they not help you out at all? I think the "random house" as you called it, was to prove there are cheap properties around but they may not be the area you wanted. We don't know where you are obviously, so can't help with locations but just looking at the next town over is sometimes worthwhile. Even with travel expenses considered
The saving for years and years was to buy the original house. I'm cash poor at the moment.
OP posts:
Fluffyslippers123 · 17/05/2021 08:35

www.turn2us.org.uk/Jargon-buster/Disregarded-Property

Original poster
radiateforme · 17/05/2021 08:36

[quote user1471457751]@HugeAckmansWife a previous poster suggested the OP give the money to someone she trusts for safe keeping so she could claim benefits as her savings would be under the limit. That is fraud.[/quote]
I won't do that. I'd lose my job if this happened. And my integrity.

OP posts:
ssd · 17/05/2021 08:38

Flowers for you @radiateforme

Guavafish · 17/05/2021 08:47

Can you borrow money from friends or family? I owe my brother money for buying my place. I’m most grateful to him!

Theweedonkeeey · 17/05/2021 08:49

Well done for escaping an abusive relationship AND still having 17k in the bank OP. You are amazing!

Can you try and make an appointment with your bank to talk through options? As others have suggested are you looking into shared ownership and other schemes that might help you? Also looking further afield if there are some cheaper areas but keeping your child in childcare near to your work?

Hallyup6 · 17/05/2021 08:54

The UC issue has always bothered me. Why should two people in the same situation get different amounts of money given to them because one is sensible and frugal and the other goes out and spends it on shite? It's not fair and doesn't encourage anyone to save.

Velvian · 17/05/2021 08:57

Help 2 buy is still available to first time buyers. It is by far the best scheme and makes a massive difference to what you can borrow as you are lower risk to the lender.

I've done it twice: for our first house and now our 2nd before it was limited to first time buyers.

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