Affording to buy even with a decent deposit?

[HoneyBadgers]

I hope this is in the right section, sorry!

DP and I have been renting close to London for a year or so (been together almost 8 years), but have always wanted to buy. Although it's not the ideal situation, we've decided to move in with my parents to save for a deposit for a year. We currently pay £1600 a month in rent and bills, so in theory we'll be able to save almost £20k in a year (parents are helping us out majorly by not charging us rent as they are in a good financial position).

We're not on a fantastic income, around £45k a year joint. It's fine, and we're comfortable, but obviously could do with more.

My worry is that even with a 20k deposit we are not going to be able to buy anywhere and secure a high enough mortgage. We will need a 2 bed as hoping to start a family within the next few years, however 2 beds around here are all upwards of £220k, and that's for very basic flats.

I'm very new to the buying scenario and think I'm a bit overwhelmed with it all, does anyone have similar experience or even able to offer advice to help me make sense of it all?!

You will struggle to buy on your combined salary in London. You'll have to consider further out

Hi Honey - Help to Buy has been extended to 2021.

With Shared Ownership you buy an initial tranche of between 25 and 75 % and rent the remainder at around 2.75% of the remaining equity (no more than 3%). There is no obligation to purchase further equity ( although you can if you want to). When you sell you can either sell your part to the other equity owner ("the Landlord") or you can sell to another person who wants shared ownership or you can do a back to back deal on the open market. A lot of people do not buy further equity and look at the rent as an interest only mortgage.

There is also another product that is out called Rent to Buy - you rent at 80% of market rent while saviing to purchase the property.

Either move further out and buy or stay where you are and rent forever. They are the options and it's up to you to pick.

I live in a home county and can commute to London. My two bed semi was 210k. We put down a 10% deposit and have a joint income of 55K and whilst we do OK, after travel etc we are not flush. We couldn't have bought much more than we did and this was a year ago. I would have liked to live closer to my Mum, but it was that and rent or further out and buy.

Bedford and Milton Keynes ate affordable and in commuting distance of London

I was born and raised in Surrey, but moved out to Sussex in order to afford a family home - that worked really well for us as it was an ok commute to central London for hubby, and close enough to Surrey to stay in touch with family and friends. BTW, we've ended up in Manchester where we got practically double the house and a much better quality of life (closer to the city for shorter commute), but we have family up here so that was part of the reason for relocating.

Make sure you put your savings in one of the governments first time buyer ISAs; they add 25% to your deposit so that will help.

Good luck

I used to own but I had to sell and spend ALL the proceeds on my disability - care mainly. I am now a happy renter with a great landlord. That's a key, a great landlord who fixes things right away. I am for personal reasons about to be in a position to buy again but I would never do it. I feel better with the freedom from maintenance worries and mortgage interest and live in a stunningly beautiful spot I couldn't otherwise afford. This country should lose its obsession with ownership. Just a thought. Wish you luck