Tell me how you got the first step on the housing ladder .

[Mollymarvelous70]

The pressure to get on the housing market has just been getting me down recently and I’m losing motivation.

DH and I have reasonable paying jobs but we just can’t seem to save enough to get on the housing ladder in the south east whilst living comfortably. In the past 2 years we’ve saved about 8k sat in Lisa’s but it just feels like such a slog to get anywhere near what we need. I did make the mistake of posting on Money Saving Expert a while ago for budgeting advice but got ripped apart for our level of earnings and lack of ability to save which made me feel a bit embarrassed tbh. Some people are really struggling and I realised that i didn’t want to penny pinch to the extremes and receive the critical judgement lots of people on their face But equally I do want to move forward.

We earn about 45k ish each but outgoings are high due to area mans student loans.

I wondered how many had to save for their deposit and how long it took them. Did you have any crafty or innovative ways you got the money together so you could just get going ?

Just interested to hear others experience really for some motivation.

Saved like crazy. No holidays, not even a honeymoon. Had one, bog standard car between us and barely went out for dates/dinners/drinks.
Took us about 5 years of saving like this. Bought with 15% deposit in a good area within commuting distance of London and have built the equity up to be able to either move up in the same area (need a bigger place now) or get a BTL (if we decide to move slightly further out).
I appreciate it is not possible on one wage unless you are working as soon as you can.

approx £5k take home after student loans and pensions . 2.5k is on just rent , utilities and regular bills . About 700 on credit card And other repayments for both of us . 700 ish saving . Then about 400 quid each on living. Am I living in gaga land ?!

Yup.
You say your rent is £1300 and Council tax £200. How do you then get your 'regular bills' up to £2.5K then ?
You really aren't taking this seriously, and, you are starting to think about it at the wrong time in your life - as you are about to go on maternity leave where your income will drop and you won't be able to get out and work 2nd jobs.
How have you managed to accumulate so much debt, when you are on such high incomes ?

I bought with a 100% mortgage back when they were a thing. It's hard having to save tens of thousands for a deposit these days.

For us it was using help to buy, it wasn't something we were initially keen on but it has lots of positives. Biggest one being you only need a 5% deposit and you get a new build (which means not a lot of maintenance costs). We have seen it as a way of getting onto the ladder without needing to spend 5+ years saving and penny pinching.

However, even to do this we did have to make some sacrifices and worked hard to bring in extra money. It does seem you aren't prepared to either use a scheme like help to buy (which of course has some drawbacks) or to give up anything meaningful. This means your position is unlikely to change as you can't work more due to having a baby.

I still haven't bought my first home yet. I'm 28 and still studying for my second degree. I have saved 4k in my help to buy isa and don't currently work but have previously as a part time pharmacy assistant and student helper at my first university.

My uncle was given a given a £100,000 deposit and even had his mortgage paid for 10 years.

My father never bought.

If you haven't been able to save a decent amount now, you'll struggle when you have childcare costs as well.

Maybe think outside the box. A BTL you later sell to give you a deposit, shared ownership.

Or give yourself a 10 year plan. Rent a one bed flat and sleep in the living room for example.

My partner got on the ladder because his parents gave him half a million quid. I just have squatters rights and enjoy paying no rent.

@motherofawhirlwind what area please ?

@BackforGood ha giving it to me straight . You’re not wrong . Mainly wedding and holidays where some stuff was paid on credit cards . I thought I was having a low key wedding but ended up spiralling. Once you make a couple of decisions early you’re on a path layer out by hotels and venues that’s hard to get off . Another story . Nope didn’t take it seriously . Thought money was a problem for older me to deal with. Now older me is here.

I expect to be judged and I’m not suggesting I want something for nothing. Just wanted to hear how others did it for some motivation.

@SheldonSaysSo1 I’m up for having another look at help to buy . Just wasn’t sure if it was a sound financial move. I will take another look as someone else suggested

@titchy we did wonder if we could buy something very cheap as a BTL in the north but I’d read we would need a 40% deposit and it wasn’t a good option for first time buyers. Open to hearing more if others did this .

@CorianderLord sounds perfect !

I had an inheritance and then saved on top of that for about 10 years, but was still nowhere near enough for a deposit, but then OH's dad passed away and he got an inheritance from that so we managed to get a mortgage by the skin of our teeth when I was 8 months pregnant.

We bought a 350k 2 bed in SW London on a similar joint income to you, maybe 10k or so higher. This was in 2014 when we were mid/late 20s. We had a deposit of 100k plus which we'd saved completely on our own after working for 4-5 years, but we didn't skimp on lifestyle to do so. We still went on long haul holidays, bought new things when we needed it etc and were renting in London whilst doing so. We've never been massively into eating out, drinking, fashion, make up etc - as in yes we do those things, but likely in a cheaper way than most. We obviously didn't have a car given we got public transport everywhere, but I did do things like 15 mins walk to the office from zone 2 which cut my travel costs in half. I didn't do this from the outlook of savings for a house though, just because it seemed insane to pay double for an extra two stops on the tube. We then overpaid substantially on the mortgage whilst also saving, sold it 4 years later, made a 100k profit and then bought an 800k 4 bed house, again in zone 6, SW London. We moved into our new home whilst I was pregnant with our first child, so hopefully we won't be moving again!

You'll find it substantially easier to move and do house viewings whilst you don't have a child. Your potential to borrow might also be impacted as obviously a child costs money and I assume from what you've said you don't have that good maternity benefits, although apologies if I'm wrong about this one.

In sum, it is possible to save a sizeable deposit on your combined salary whilst also renting in London and having a comfortable lifestyle, it just depends on your definition of comfortable, I guess.

@Rossaloony moving at 8 months pregnant! I’m already nesting not sure I could move so late. Great you got there after 10 years . Goes to show it can take time but you can get there .

Wow @Cardboard33 that’s very impressive how you have progressed up the ladder despite living in London . You’ll be set. That’s inspirational. My maternity package is good , 6 months full pay. Just wanted to take the full 12 months so saving to cover 6 months my half of the bills and 500 quid a month to live off . I don’t want my husband to feel under too much financial pressure if I can avoid it now by putting it aside .

@Mollymarvelous70 ah no she was 5 days old when we completed - that was interesting!

Also, I've just seen you've "massively overspent" on baby stuff. Buy everything second hand - the only new stuff you need is a car seat and mattress. We've bought the majority of stuff second hand all of the way through (ours is 18 months now) and he's ended up with a lot never worn items of clothing anyway, and it's at a fraction of the price. People will get you lots of 0-3 month stuff as gifts given it's your first baby, then second hand all of the way.

I know there are all ends of the spectrum on here and I really appreciate everyone who posted their view . Even if some were difficult to swallow .

Some people have clearly saved hard and focused and I am inspired by your journey. The ones who got inheritance will know it’s a lucky position to be in. I’m not jealous at all

We certainly won’t be in our own house before the baby but I think the amount we have been saving for maternity and paying off debt we are now in the right frame of mind to continue when the cards are paid off which won’t be long < 12 months and plough that money into the Lisa. I’m realising a 3-5 year plan is probably more realistic and that’s okay just need to plod away staying focused. Even with childcare 300 quid every month will be doable plus any bonuses etc .

Thanks again

We have a much smaller combined income, though live in a slightly cheaper area. We bought our first property by starting to save when we were young. We went without nice holidays, drove an old car, worked overtime etc. It wasn't fun but definitely worth it in the long run as we have moved up from a flat to a 3 bed semi detached in an ok area. And our mortgage is manageable. We have 2 kids now and I'm so glad we bought first.

I've always felt proud of the fact that I saved up for my own deposit. It is all my own achievement. I'm actually not jealous of my friends who got chunks of money off parents.

45k each?!! Why can't you save at least £45k a year? Honestly that is a ton of money.

The more you save the more you save. I become really excited by the small savings. It really does all add up. Quickly with such a disposable income.

Yes alrite @OhioOhioOhio it’s all relative isn’t it. To some that’s a lot and to others it’s not depending on where and how you live..

Shall I be cheeky and guess , Are you in your 40’s / 50’s with a tiny mortgage living in the north east ? Bought back when houses were peanuts. Loves comfortably sat on a chunk of equity.

@Jarofflies yes the key is to get going young and take it seriously early.. before you get excited after a couple of pay rises. Yes you should be proud it a big achievement and tastes better when hard fought. I’m sure I’ll feel the same in 3 - 5 years . DP is keen to move north and live in a big house but I just don’t see the work there in my industry. Maybe time to start keeping an eye out for the off ones that might come up . But generally all city tied .

@Cardboard33 agreed on baby stuff . The big expense has been a posh pram and car seat which I’m very happy with and MIL wanted to contribute to . As a new mum it feels like a right of passage to get the new pram . ( that’s where the wedding went so pricey too )

Clothes will be as much second hand as possible . Only have a few bits so far. Find mat leave mind have me down the shops so just need to stay away from the high street . Easier with covid !

OP how long do you have left on paying your debts? (excluding student loans) I personally wouldnt look to buy until the debts were settled. We earn a little less then you do but we managed to save 1500 sometimes more a month. The difference was we didn't have any debts so it was much easier to save for us. One tip would be don't focus on what you feel you should have done/saved but focus on how you can going forward

I bought at auction age 25, got a payday type loan for the deposit, which I paid back with equity release. But I did live in pretty much a derelict house, with only a mattress and camping stove. Probably not appealing to someone who likes a comfortable life and has a baby on the way.

@Rlw2020 I’ve got about 4.5k left and DH has 3k. We will have it paid off before going back after maternity, maybe a with a small amount left if there are unexpected costs like a car breakdown etc. We were just discussing it and being debt free before childcare should be the immediate priority. Then anything extra can go into the house saving , but need to adjust our expectations on how long it will take without moving to somewhere cheaper and childcare . Thanks I appreciate your advice . I do compare our situation too much..

@Mrskeelersbitch great story ! Takes some guts to do. Nope not for me I’m afraid but shows you can take risks!

Inherited some money unexpectedly to put down as a deposit. Otherwise we'd still be up shit creek.

Me and DP both got made redundant at the same time from the same company just before Christmas. I'd been there 11 years and they had a really good redundancy package. DP got a good goodish payout for the 12 months he had been there too. We had 2k in savings. If we hadn't have both got jobs straight away we'd never have been able to step onto the ladder.