Desperate to get on the property ladder

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Posting for traffic. Can anyone help

I'm desperate to get on the property ladder and like everywhere else house prices have shot up. I plan to buy alone and my salary is 20k. I'm trying to get a better paid job but it's easier said than done. The bank will only lend 80k. I couldn't even buy a caravan for that price. I have heard that some do lend 5 times a persons salary as well, but is that normally only for people who earn a lot? I have a 5% deposit and will continue to save each month but of course house prices are increasing every year so I just feel like I'm fighting a losing battle. I'm 30 now and after 8 years of renting I just really need to buy my own place. Any advice is welcome, thanks

Have a look at what properties are listed in the affordable housing scheme in your area. These enable you to purchase a property at approximately 75% of its value. It is not shared ownership, you own all the property. However when you go on to sell it you get it valued and sell it for 75% value. This means it stays in the affordable housing scheme and allows low earners to purchase a home. The list should be available on your local authority website. Good luck xx

Hey OP, where abouts do you live? I'm no expert but I am currently purchasing a place (with my bf so not on my own) and we had to give a 15% deposit! I would try and aim for at least a 10% but 15% is now becoming the norm unfortunately! Depending on where you live you should definitely try and get a higher salary, I know it's easier said than done :( Iv been working a job I hate for 5 years just cause the salary is quite good and had planned to buy somewhere with the best salary I could get.. once I move in I'm going to try and get a job I actually like even if it means a slight loss of salary!

Do you have to stay in your current location?
There are 2 bed terraces round the corner from my first house up for sale for 85k. They arent beautiful and modern inside, but they are clean and functional.
So as well as looking to increase your salary, you could look at maybe living somewhere cheaper?
Otherwise, it's just a case of carrying on doing what you are doing. Are any of the first home buyers deposit accounts open to you, to allow your deposit to grow faster?
Can you do shared ownership on the amounts they are offering?

Remember greater multiples of salary borrowed mean more to pay back. You may not want to borrow 5x salary if interest rates were to rise a bit!

Have you put your savings in a Lisa for an extra 25% interest?

Be careful though, because if you don’t end up using it as a deposit, you won’t be able to access it till pension age.

30 isn’t that old any more to buy a first home - precisely because it’s all so expensive. Everyone I know (in the SE) who has bought has been nearer to 40, or had a massive windfall like parental help, inheritance, partnering up with someone with those things, etc.

Your options really are: shared ownership on the smallest studio; move somewhere with really cheap property (job needs to be remote or transferable); buy with a friend (need a watertight contract and a plan for either of you to be able to leave); increase salary to increase mortgage; or increase deposit (inheritance, lottery win, selling a kidney, saving HARD for another 5-10 years).

You've got two options really, move to a cheaper area or get a better paid job. I appreciate that neither of these is an easy option but if you are looking to buy alone, it's really difficult otherwise.

Have you looked into shared ownership?