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Original poster

worried we will never be able to own our own house

60 replies

BillywigStings · 13/11/2018 19:21

DH and I are 28 and we are worried we will never earn enough to get a mortgage. Combined we earn about £14,000 a year. We have two kids under five so we don’t have a lot of money to spare but we have worked out it will take us 4 years to save for a deposit. However it’s not the deposit we are worried about, it’s our low income that will prevent us from buying a house anywhere near what meets or needs. Basically we can save 10K and the houses we are interested in are 100-125K but we’d settle for a fixer upper at 75K. At our income from what I can see we’d only be loaned 38-56K and add our deposit into that it would come to 66K at most - nowhere near what we would need.

There’s no chance of us getting better paid jobs without retraining and getting into debt.

Is there anything we can do to get lent enough money for a mortgage for the price of the type of house we would want?

I just hate paying so much of our income towards rent when for much less we could be putting it towards a home we could one day own :/

OP posts:
xyzandabc · 13/11/2018 19:29

Do you both work part time? In which case can one of you find full time hours either at the same place or elsewhere? Or take on a second job to increase your income?

I only ask because minimum wage at 37.5 hours a week is £15200, so between you, you aren't even earning the equivalent of one person's full time salary.

SoyDora · 13/11/2018 19:30

Do you both work part time?

BadgersBiggestFan · 13/11/2018 19:33

Income doesn’t sound right at all

IStandWithPosie · 13/11/2018 19:36

One of you (at least) needs to take on more work to increase the amount of mortgage you will be eligible for. Also, save save save to get as much of a deposit as possible. Look at different areas with lower house prices. Consider auctions too.

Bluewidow · 13/11/2018 19:38

Well, no realistically earning 14k between you is not going to get you a 100k mortgage. What are your jobs? your only 28 why do you think that you wont ever be able to earn more?

BadgersBiggestFan · 13/11/2018 19:39

Realistically how can you save on £14k a year?

Do you have parents who could help out with a deposit?

SouthernComforts · 13/11/2018 19:40

Are you sure that's your combined income? Doesn't sound right unless you are both part time on NMW.

IStandWithPosie · 13/11/2018 19:42

Two DC under 5 means in less than 5 years both will be in school full time so another chance to increase income. Don’t have more children in the meantime!

Bluewidow · 13/11/2018 20:32

op you need to give more info here as it doesn't really add up. If its a combined income of £14k then one of you can increase hours now unless there's reasons not to that you haven't explained, you don't have to wait until the children are in school.

Original poster
BillywigStings · 13/11/2018 20:45

Hi,
Sorry maybe I haven’t added up income right. We both work 16 hours each minimum wage so there’s always one of us home with the kids.

I don’t really see how having kids in school will help with income as if you are doing minimum wage jobs finding something which offers shifts between 9-3 is nearly impossible.

OP posts:
RandomMess · 13/11/2018 20:48

When they are of school age childcare is generally cheaper using breakfast club, one works full time or night shifts the other school hours.

You need to shift your thinking about what jobs you do. Why can't you both work 20 hours per week? Opposite shifts or one doing nights and weekends...

SouthernComforts · 13/11/2018 20:50

Could you work opposite shifts? One work days one nights? Or one ft Monday-Friday one evenings and weekends. You're not even at one combined full time wage, so it does look unlikely you'll get a mortgage OP, sorry.

(I work ft and houses are a similar price and I also can't so I'm not just being snippy.)

Original poster
BillywigStings · 13/11/2018 20:52

So we will definitely focus on trying to work more and save more of a deposit. It’s been tricky finding two jobs which slot in together without overlapping shifts.

I’m getting my suspicions confirmed here, which is that we are looking for a home beyond what we could realistically get a mortgage for. What we can afford, it looks like, is a two bed flat in the kind of area I wouldn’t want my kids to grow up in (drug addicts etc). Hardly worth buying as they are almost impossible to sell on (so I have heard). Either that or we try to move to another town, but that would mean leaving family and friends and jobs behind, so we’d rather not.

So we just need to save save save!

OP posts:
justtryingtogeton · 13/11/2018 20:52

Do you receive any other benefits?

Lenders take chb and universal credit into affordability calculations.

The help to buy scheme may also benefit you. You need a 5% deposit and then you'd receive a 20% loan interest free for the first 5 yrs from the government.

The scheme itself may not be for everyone, but it may help and is a step in the right direction...

I am a mortgage broker, have been for 16 yrs Smile

iMatter · 13/11/2018 20:54

Unfortunately I think you are right. As things currently stand you won't get a mortgage or even be able to save a deposit. You need to be working longer hours I'm afraid.

When the kids are at school one of you can work full time and the other could work school hours or evenings or weekends

When do you get your free nursery hours?

brownjumper · 13/11/2018 20:56

One of you needs to get a decent paying job! Of course you won't be able to buy a house on that income. You won't be able to afford to pay for a new boiler if it goes wrong either. Surely you don't expect to be able to buy a house on that income?
Not everyone can buy a house I'm afraid.

RandomMess · 13/11/2018 20:56

Can one of you retrain to increase future earnings?

Holidayshopping · 13/11/2018 20:57

No-I don’t think you will be able to buy that sort of house when you don’t bring in even one minimum wage between you.

That’s not to say you won’t ever though.

Original poster
BillywigStings · 13/11/2018 20:57

Those are our contracted shifts. DH works tues - sat and I work sun-tues. Our shifts are short but there are often chances to work longer, and we do take on overtime when it is available and on each of our ‘work’ days. I have not included overtime in our income calculations as it isn’t guaranteed...also recently we haven’t been doing overtime due to DH having mental health issues. So there is more money than I have made out, but obviously it is not to be relied on and it’s not a huge amount

OP posts:
Original poster
BillywigStings · 13/11/2018 21:01

I realise it sounds ridiculous to think we can afford to buy a house on such a small income but realistically we pay more than our mortgage would be on rent every month (about 200 pounds more I think). We are very frugal and will be able to get a £10K deposit by the end of 4 years, 3 if we are careful. We get child benefit but that’s it.

OP posts:
RandomMess · 13/11/2018 21:05

So you need a job with longer shifts or one do days one do nights...

I know people that have 2nd jobs as pizza delivery driver etc in the evenings.

It isn't going to be easy but that is the sort thing you need to do.

Original poster
BillywigStings · 13/11/2018 21:06

Just want to add I do feel like I have asked a bit of a silly question as we have a small income compared to what we want to buy... but thanks so much for answers anyway, I have an idea of where we are in terms of what we can realistically afford and how to get there. It’s obvious after reading your replies. Sometimes it just helps to bounce ideas off other people!

OP posts:
LewisMam · 13/11/2018 21:08

We had to wait till the older generation died and left us enough for a 30% deposit. Otherwise we still wouldn’t be able to buy a house.

RahRahRooRah · 13/11/2018 21:09

I agree with others, you have to change your thinking..

When our first born was 9mo, I went back to working doing nights,
My husband worked days, and did one or two weekend night shifts

We knew it was going to be tough - but it's not forever, and you can sustain it when you're young

10 years on from that time - I don't think we could manage it now!! But so glad we did, because now we're financially good!

IStandWithPosie · 13/11/2018 21:10

You need to start thinking outside the box. It’s unrealistic to think you can support a family of four on 32 hours per week at minimum wage. Not long term. Let alone save and get a mortgage on that! I would be looking at at least one of you aiming for higher paying jobs, retraining if necessary, and in the meantime taking on extra hours and other work. Take in ironing, you can do it evening when DC in bed. Avon? Cleaning work during school hours every day. (This is what I do) if one parent is home in the mornings the other could get an early morning cleaning shift 6/7-9 in a school or office. Lots of jobs like that round here. Buying and selling on FB eBay etc. Get your thinking caps on, start asking among friends and family for ideas. Maybe someone (grandparents) could offer you a day a week free childcare and could use that to work another job. It won’t be possible to get a mortgage with your current circumstances but your current circumstances aren’t sustainable anyway, not long term and you’re only 28 so lots of life ahead of you to pay for. Get cracking on it now and you’ll thank yourself when the pension years roll around.