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

[radiateforme]

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.

@radiateforme I would say if you’re considering a one bed flat, make sure it is one you can see yourself living in for a few years. I have a one bed flat but it was almost the size of a two bed so I could make a second bedroom easily. But you don’t want to outgrow it and feel trapped, because you really need to stay in it for 3-4 years to see any equity build up and gains.
I think you’re doing an awesome job, this is just a slog now until you get a promotion or childcare reduces. Just have to work to keep positive

No further advice than anything on this thread, but you are amazing, OP!
You've escaped a life-threatening situation, got your childcare and job sorted and you have in place a plan to improve things. On broken sleep!

I am not going to pretend it will be unicorns and ice cream going forward, but given how far you have come, you will only keep going further. No matter how it happens, you will secure a home of your own.

www.sharetobuy.com/ Have a look on this site -

£160 is about the cost of a small two bedroom house in my area. There are reasonable 1 bed flats for £100k in that same area.

Are you saying that you can’t any under £115k anywhere but the ghetto where you are? It’s hard to believe.

You can claim universal credit if you have savings £6k and over. And strictly speaking you can’t just spend it on something to avoid having savings. You could risk it and hope they didn’t find out. I’m saving atm not for a house I have one of them. I have £13k in the bank in case I ever don’t have a job. All other savings going forward I will use to pay off extra of the mortgage so if I need to claim benefits I don’t get screwed.

Hi op - I’m 55 and took over the mortgage. Due to my job, maintainable and I work part time I was able to get a mortgage up to 75. It’s best to look at a totally independent broker - John charcoal and London and county/country - I’ve forgotten which one.
Look at Martin Lewis as he has some good tips.

OP you are being way too hard on yourself. You don't sound remotely like a teenager to me. You have a job, a child and you are very responsible.

Is there any way you can transfer your work to an area where house prices are not so high? Do you depend on commuting to a certain area? Can you look for positions one rank higher in your profession so that you can increase your income a bit?

Part of me agrees with you that it would be freeing to just rent and relax, but rents are unreasonably high too, because they have to pay off the BTL landlords' mortgages. Why pay through the nose for something you can never recoup? With lower security.

What area are you in? Can you look a little further to find something within your price range? Can you work from home some of the time to make a longer commute doable for a couple of days a week?

Are you saying that you can’t any under £115k anywhere but the ghetto where you are? It’s hard to believe.

Sadly no, I live in a somewhat stabby area near some fully ghetto areas, and £115k just won't buy anything here. Obviously in many areas it would, but the OP needs to stay near family.

I'd also spend 1k (it sounds like it would go on your nursery fees right away anyway) to remain under the UC savings threshold. As you're currently stuck in one bedroom living with family, a 1-bed might actually offer more space, especially as your son is still small? Alternatively, have you considered a shared ownership property?

Can you look at shared Prichard or help to buy etc? Even if it's not what you want at the moment it'll help you get on the property ladder

@vivainsomnia

£160 is about the cost of a small two bedroom house in my area. There are reasonable 1 bed flats for £100k in that same area.

Are you saying that you can’t any under £115k anywhere but the ghetto where you are? It’s hard to believe.

Absolutely. 115k where I live gets you a renovation project even for a 1 bed!

Definitely look at help to buy op.

For 160k property, you could get 20% loan 32k, 15k deposit and 100k mortgage, so you are only 13k short.

The loan is interest free for 5 years then its 1.75%.

@BlueAgean

For 160k property, you could get 20% loan 32k, 15k deposit and 100k mortgage, so you are only 13k short.

The loan is interest free for 5 years then its 1.75%.

You say only 13k though. Where do I get 13k from?

I would definitely recommend shared ownership for the security if nothing else. Yes it's a bit frustrating that a big chunk of your outgoings is still on rent rather than a mortgage, but at least 25 or 50% or whatever share you buy is going into equity. And it gives you security for as long as you want to live there. I'd just recommend you check the terms carefully as when we wanted to staircase to 100% it turned out an extra ground rent kicked in that increased over time quite a lot above inflation which our solicitor was really not happy about.

One of the issues is that people think they have to remain in the same area they rent in. They don't. If you can't get a 2 bed house for less than £160k, then move. Where I live, in a 3 bed house, you'd pay less than 100k and it wouldn't need very much work doing to it at all.

You have options. Sure, you can live where you are if you want to - and I'd understand why you wanted to, as it's easier to be round family etc - but if you were more flexible with your area, you may find that you could buy.

You are basically borrowing the money you would have had to save off the government. I don't know whether taking the loan reduces the amount of mortgage you can get but it shouldn't as much because of the 0% interest and if you took it out over a longer term the repayments would be less, though you'd want to see what early repayment charges were in case you paid it back sooner.

Do you have a relative who could guarantee a new mortgage with you or even do a joint application?

What area op? Perhaps mumsnetters could help

If you are under 40 you could put money in a help to buy LISA, the government will top it up by 25%. You can put 4k p/a and the government will give you 1k on top. You can do both a LISA and help to buy. It does count towards universal credit unfortunately.

Shared ownership?

@LindaEllen

One of the issues is that people think they have to remain in the same area they rent in. They don't. If you can't get a 2 bed house for less than £160k, then move. Where I live, in a 3 bed house, you'd pay less than 100k and it wouldn't need very much work doing to it at all.

You have options. Sure, you can live where you are if you want to - and I'd understand why you wanted to, as it's easier to be round family etc - but if you were more flexible with your area, you may find that you could buy.

I can't be flexible re area. I'd have to give up my job, and wouldn't have family around to help. I have to think of my mental health. I'm healing from domestic abuse. I'm pretty much a shell of who I once was. I can't move away from my support network.

I would not push your ex to sell yet as its better the money is not in your savings account.
Check if you are eligible for the 15 hours 2 year old provision. Check you are buying the nursery provision in the cheapest way eg using child care vouchers, can you claim the cost back through UC. Ive found the county council early years dept very helpful.
Earn extra money if you are able that isn't taxable eg matched betting or getting obsessed with surveys.
Sell anything you dont need. I expect you could rustle up another £3k in the course of a year.
Ask for a rise at work. Explain why you deserve it, justify why they need to give you one. Men ask for rises and usually get them. We women don't. If you dont feel confident a mentor might help and someone else might be able to suggest an organisation
Good luck. You will get there. Sometimes it is two steps forward and one step back

Houses prices up here in the NE are so much cheaper, I am stunned when looking on Rightmove at the prices of houses compared to what we would pay up here. Please do not be disheartened, I could not afford to move out this area on a Nurses wage, it is outrageous the property market, youngsters have got no chance.