Where to start on the property ladder?

[Mumofoneandanotherontheway]

We really want to get on the property ladder but really don’t know where to start. We have 2 kids (4,1) OH works full time & gets £18.5k before tax, I’m not currently working. We’ve saved up approx £15k.

Can we get on the property ladder with this & our situation right now?
Please don’t judge, just looking for some advice x

Abbey Wood /Thamesmead / Erith you can get a 3 bed house for £200k ish.

Abbey Wood /Thamesmead / Erith you can get a 3 bed house for £200k ish.

Well you might, but OP can’t!

Who wants to live in Abbey Wood/Thamesmead/Erith? I suppose Erith is OK but not the other two places, Thamesmead is quite sinister.

It’s an indication of the cheapest place in London if the OP chose the ‘wait til you get a job, get a promotion and get in the property ladder asap’ option. That’s all.

Oh wow, thank you all so much for your responses. Just as we thought it would not be possible! We are currently in HA property but they do not have the right to buy yet as we would of got a big discount too. Having looked into shared ownership but will do.
Many thanks x

Are any of your savings in a Help To Buy ISA? They stopped them a short while ago but they were a v good bet for people saving to buy.

I lived quite happily in Erith, passed my 11 plus and went to a good grammar school.

@SW16 Help to Buy ISAs were phased out because the LISA was a better deal. You can save up to £4K a year and the government give you 25% (so up to 1k per year) to save towards a first home or lump sum on retirement. Definitely advise this OP. You could put 4K of what you’ve already saved in by March and another 4K in in April and then you’d be 2k richer for no effort.

I wouldn't give up a HA property though until you are in a better financial position to buy.

Yes definitley start putting into a LISA. I just transferred my help to buy in there and got the £1k bonus for this year straight away. Also you can only withdraw your help to buy and claim the bonus once you have completed so pointless if you want to use it towards purchase price.

Lippy1234 Wed 05-Feb-20 10:08:15
I lived quite happily in Erith, passed my 11 plus and went to a good grammar school.

Well quite, Erith is quite good, Thamesmead and Abbey Wood not so.

Highly unlikely. Look into shared ownership

I’m afraid you won’t be able to get a mortgage for a London property on 18.5k salary. Maybe if you got a job too that would help but even then it’s unlikely as the property prices are so high. I’m a single parent on 44k per year and I can’t get a mortgage on that, well I can but max I can borrow is 200k and there’s nothing I can buy with that. My plan is to save as much as possible between now and 6yrs time when my youngest will be 18 and then I plan to move back to my native North Wales where I’ll be able to buy a 3 bed detached in a nice area. It’s so frustrating living here as I earn a good salary but can’t buy anything as prices are so high.

One option is moving out - not Surrey as that’s where I am and it’s super expensive but maybe Essex or Kent, as they are more affordable. If you don’t need to stay in London I’d seriously consider moving elsewhere - you can have a much better standard of living up north for example. My friends all earn less than me and have lovely houses. I can’t move until my daughter finishes high school though as it wouldn’t be fair and she’s in a brilliant school (and the schools where I’m from aren't as good)