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Original poster

Will I ever be able to afford a house?

45 replies

singlemama91 · 08/10/2021 16:40

Are house prices going to keep going up forever? I am early thirties with two young DC and I have an ok job but dont manage to save up that much each week and dont have a lot saved for a deposit. Will I ever be able to buy my own place? It seems almost impossible right now but also that its just going to keep getting worse.

I met a friend for lunch today and we talked about it a bit but she made an off-hand comment that just made me really worried and said "renting is fine when youre young but if you dont buy a house now you will never be able to afford to retire or ever pay your mortgage and will be struggling when your old"

I know there is not much anyone can do about this but just wondering if anyone else feels the same?

OP posts:
Original poster
singlemama91 · 08/10/2021 16:42

Do I just need to rely on finding a man that either has their own house already or has enough money to buy one?

OP posts:
Porfre · 08/10/2021 16:44

You're not alone.

I'm wondering if I've missed the boat.

I keep saving but the prices keep rising.

AwkwardPaws27 · 08/10/2021 16:46

Maybe speak to a free broker like London & Country to see what mortgages you might be eligible for?
We bought our first place in 2014 with a 6% deposit due to a first time buyer scheme which enabled us to get a 94% mortgage. The interest rate was shit for the first couple of years but it enabled us to get on the ladder. If we hadn't got that, we would have bought shared ownership as you only need a % of the share you buy.

Mermaidpool · 08/10/2021 16:51

We are the same, trying to save but prices going up far quicker than wages. I'm 40 and no closer to buying than 10 years ago

Original poster
singlemama91 · 08/10/2021 17:10

Its so depressing isn't it Sad and my savings will probably be going down instead of up with the prices of everything going up.

@AwkwardPaws27 Thank you for the advice but i really dont think i have enough saved. How much did you have for a deposit if you dont mind me asking?

OP posts:
AwkwardPaws27 · 08/10/2021 17:55

£9,000; the flat was £153,000.

WombatChocolate · 08/10/2021 20:20

It certainly is easier if you have 2 incomes. Some people buy with a friend, but they tend to be people without kids.

If you have no family help, don’t earn loads and there’s just one income it’s incredibly hard.

The things which you can seriously consider, even if they aren’t appealing at all, but which can make a difference are moving to a much much cheaper area (although you’ll still need a deposit) and/or looking to buy a 1 bed place. You might think that can’t work with 2 kids, but lots of families do live like this - the kids in the bedroom and the adults sleep in the living room. It’s not ideal, but it is a foot on the ladder and means security, as well as not having to pay rent in old age. Very often, people with kids rent a family home and feel that is the only kind of property they can consider so never buy. Your friend is right though about thinking about old age and renting.

Are you in social housing? If you are, at least you have some security and rents will be controlled. If it’s private housing the problem is that you might have to move regularly, as well as market rents rising.

How much do you earn Op and do you work full time? How much do you have saved for a deposit? With those figures, we might be able to help you more. Sorry it’s so hard.

WombatChocolate · 08/10/2021 20:23

And yes, shared ownership could be an option. There are issues with it and additional costs which somehow hit those least able to afford them, but even with a small percentage share you’ve got security and a chance to buy more later. Again, you might need to consider a smaller property than you’d actually like. However it can be the route to ownership if your deposit is low and there’s no further help available from family, especially if you will consider moving area to somewhere significantly cheaper.

Jmaho · 08/10/2021 20:30

It really all depends on your earnings and house prices where you want to live. You can get a 95% mortgage as long as you are in permanent employment have clean credit and can pass the affordability tests.

Porfre · 08/10/2021 20:39

@Jmaho

It really all depends on your earnings and house prices where you want to live. You can get a 95% mortgage as long as you are in permanent employment have clean credit and can pass the affordability tests.
Is this only for first time buyers or can anyone get a 95% mortgage
Strangevipers · 08/10/2021 20:42

As other posters have all said all depends on earning and if you can get 95% mortgage

Shared ownership, auction or repossessions are options - not great options but still options

Plus , hate to say it but lost people can't afford to get a mortgage on their own so either need a partner or a sibling/ friend to live with.

Life is hard

SmallWaistFatFace · 08/10/2021 20:43

Hello! We bought a 50% shared ownership property 3 years ago as with such high rent we weren't able to save much. It will cost us more to sell this property than if we were to own it outright, but we have had three years paying into the mortgage, we have made the house nicer and house prices have risen. We have been saving on the side and are planning to move in a year or two.

I know it isn't for everyone but house prices in our area for a three bed are £330k+ and we would never have been able to buy a house outright. There are ways of getting there, even if they're more difficult. Not everyone has the luxury of bank of mum and dad or living at home for extended periods so you've got to do what you have to do!

Babyroobs · 08/10/2021 20:47

Many people continue to rent in retirement, many go into retirement with big mortgages. If you don't have the means to pay your rent in retirement you get help with it. Ideally it's the best scenario to own your house before you retire but many don't. There are also many pensioners who can't afford to maintain the property they have.

Jmaho · 08/10/2021 23:26

Where I work they can but not on new build properties and has to be a purchase not a remortgage. Plus you'd have to go via a broker. Lots of the big banks are offering 95% lending these days to first time buyers and movers. Best to get a decent whole of market broker and they would find you the best deal

Original poster
singlemama91 · 09/10/2021 01:53

I cant sleep and am worrying about everything so i am on mumsnet at nearly 2 in the morning!

Well i only earn 17k at the moment. I am an administrator but part time at the moment but i am hoping to go back to full time when the DC are a bit older. I have 6k saved in a ISA. I know its not a lot compared to a lot of people and it is probably a bit hopless trying to buy a house. Is shared ownership or 95% mortgage doable with that much for a deposit? It means I would have nothing left though.

We maybe will have to just move to a different cheaper place and get one bedroom but i dont know if that could work with two DC and if I end up with a man which i want to at somepoint they wont want to come over

OP posts:
Strangevipers · 09/10/2021 02:03

Relax

Panicking at 2 am won't change anything

Have a look tomorrow at houses you like that are for sale

See how much they are

Then check to see how much deposit you require

Then use that as a goal

6k is a great start and if your accepted for 120k mortgage at 95% ltv then 6k is great

Right now it's a sellers market rather than a buyers market anyway so you have time

AwkwardPaws27 · 09/10/2021 08:00

Going back to your friends comments - you don't have to get a mortgage now. You could get a 25 year mortgage in your early 40s and still pay it off by retirement. If you continue saving, and go back to working full-time once your DC are old enough, you'll be in a better position in terms of deposit and borrowing.

IceCreamAndCandyfloss · 09/10/2021 08:57

The time to get on the property ladder is pre children when you can work as much as needed in order to get a deposit together, have no dependent responsibilities and can be frugal if needed.
Two children and only a part time income isn’t going to align with buying a home when a deposit is needed.

As for Do I just need to rely on finding a man that either has their own house already or has enough money to buy one there are no words Hmm

WombatChocolate · 09/10/2021 08:57

Morning.
Sorry you've been worrying over night.
To be honest, if you're working part time and earn £17k, you really don't have enough income for a mortgage. In simplest terms, your income needs to be higher and most households with one part-time income wouldn't expect to be able to buy. You will need to work full time. That will boost your income and make it more possible. Your earnings determine what you can borrow and whilst it's low, you won't be able to access much.

Your deposit savings are a great start. Well done of saving that chunk. If you look at some of the cheaper areas, you'll see that you might not need much more deposit in order to access a shared ownership small flat. But the thing that is going to be the problem is the small income. You'll need both a deposit and an income which will allow you to borrow enough.

Regarding size of property, you have to buy what you can afford. A 1 bed place isn't ideal for a family, but you can't afford ideal. I think worrying that a 1 bed won't be attractive to a man who might like to stay over is shifting away from thinking about the home ownership issue. I assume you have more bedrooms at the moment whilst renting, and it may well be that you will have to choose between continuing renting and having more space, and owenserhsip and less space.

Are you in social housing at the moment? I think this is a key consideration. If you are, you have security and controlled rent. Renting longer term in social housing is far less of a worry than in the private sector. If you're private sector, chances are you'll have to move fairly frequently and/or rents will keep rising substantially.

It's very hard Op. I can see that. Love oki g to get into full time work as soon as you can, plus really looking into cheaper areas and small properties is likely to be the things that can make this possible for you. Whether you are willing to seriously consider these options is up to you. Some people won't and therefore remain renting. Others will do whatever it takes to buy.

Jmaho · 09/10/2021 09:20

@singlemama91

I cant sleep and am worrying about everything so i am on mumsnet at nearly 2 in the morning!

Well i only earn 17k at the moment. I am an administrator but part time at the moment but i am hoping to go back to full time when the DC are a bit older. I have 6k saved in a ISA. I know its not a lot compared to a lot of people and it is probably a bit hopless trying to buy a house. Is shared ownership or 95% mortgage doable with that much for a deposit? It means I would have nothing left though.

We maybe will have to just move to a different cheaper place and get one bedroom but i dont know if that could work with two DC and if I end up with a man which i want to at somepoint they wont want to come over

The main thing to think about is how much the sort of property you want to buy would cost. Based on your current income and deposit you'd be looking at max House price of 80k. But lots of lenders have a min income amount, ours is 20k per annum. Do you get tax credits or anything like that because there are lenders that will take benefits into account too and child maintenance. Working full time will definitely help and will boost the amount you will be able to borrow. Don't worry too much about age. You could still get a mortgage in your 40's that would be repaid by retirement age
Overthebow · 09/10/2021 09:51

You need to decide what it is you want. Working part time for £17k is never going to get you a house unless your in a very cheap area. If buying something is important to you, go full time and properly save up. You might need to start with a flat, but you can work your way up the ladder. You need to be working towards this now though.

KeyboardWorriers · 09/10/2021 10:16

You need to figure out a plan (not one that involves finding a man).

So can you work full time? Can you look at career progression?

I knew I needed to work more hours and progress at work to be able to buy a house so that is what I aimed for.

userxx · 09/10/2021 15:09

@singlemama91

Do I just need to rely on finding a man that either has their own house already or has enough money to buy one?

Absolutely not!! Why would this even be an option?

Viviennemary · 09/10/2021 15:13

Owning a house when retired can bring its own headaches. Roof repairs and so on. If you haven't got a decent pension.

Hamtonn · 09/10/2021 15:18

Very few people manage to buy a house completely on their own. At the very least they need a partner to pay half. That’s also why loads of people stay in unhappy marriages - because they couldn’t afford to buy two houses if they split.