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All those of you who have a deposit saved but cannot buy at the moment

27 replies

FlyingSoap · 23/06/2023 20:35

How are you feeling? We just darent because of the rates, I think it would be a stupid (and dangerous) decision and one that would land us in negative equity. It’s so frustrating though when you’ve worked hard towards your house goal and then have to put it on ice.

OP posts:
Rispa42 · 23/06/2023 20:46

My sister is in a similar position. Only thing is her rent has increased nearly 20% this year so she’s not sure what to do.

FlyingSoap · 23/06/2023 20:50

Rispa42 · 23/06/2023 20:46

My sister is in a similar position. Only thing is her rent has increased nearly 20% this year so she’s not sure what to do.

That sounds really difficult. Has she got much of a deposit saved? It might be worth buying for her

OP posts:
Sublime66 · 23/06/2023 21:05

Prices are coming down nationally, this will continue for the next 18 months. Be patient.

FlyingSoap · 23/06/2023 21:09

Sublime66 · 23/06/2023 21:05

Prices are coming down nationally, this will continue for the next 18 months. Be patient.

Just worried affordability will be affected if we have a baby but nor do we want to put baby plans off

OP posts:
Oliotya · 23/06/2023 21:25

Why do you keep making these posts?

FlyingSoap · 23/06/2023 21:26

Oliotya · 23/06/2023 21:25

Why do you keep making these posts?

Don’t want to talk about my situation, want to hear from other first time buyers and just see how others are getting along. Is that okay?

OP posts:
Oliotya · 23/06/2023 21:31

FlyingSoap · 23/06/2023 21:26

Don’t want to talk about my situation, want to hear from other first time buyers and just see how others are getting along. Is that okay?

This is at least the 3rd almost identical post. What do you want to hear that you haven't already?

FlyingSoap · 23/06/2023 21:33

Oliotya · 23/06/2023 21:31

This is at least the 3rd almost identical post. What do you want to hear that you haven't already?

Nothing, but I take your point. Maybe I should have just commented on one of those. Won’t post anymore. Just like to chat with other first time buyers and all my friends have either bought by now or have no interest in ever doing it

OP posts:
Sittingonasale · 23/06/2023 21:40

I came off my fixed rate about 3 months ago and went onto a tracker as I knew I wanted to move soon. I've decided to buy a share with Heylo and try and staircase asap but without a mortgage. I might try and get a mortgage at a later date when rates have stabilised to buy more shares but for now, I'd rather pay the rent on the share I don't own.
It's been a great process so far and I was able to choose my own home with the yourhome scheme. Can't wait to pay off my debts and get off this tracker.

Sittingonasale · 23/06/2023 21:41

I'm not a FTB though as I'm selling my (mortgaged) house.

Sublime66 · 23/06/2023 21:44

I understand. Affordability is affected, nationally, because of the rates, this is why house prices have no option but to reduce hugely, to an affordable level. probably 25-30% at least!
it does depend on the area tho. Where are you?

Playgrind · 23/06/2023 21:48

I'm in a desirable town in the SE, would love prices to come down so we can buy but may have to move. We are looking to see what's out there but for now very little on the market in our bracket of the market.

Am resigned to having to wait, and in the longer term make sure I'm.in secure work. If prices drop by 30% surely we're looking at a full-on recession

Sublime66 · 23/06/2023 22:02

Playgrind · 23/06/2023 21:48

I'm in a desirable town in the SE, would love prices to come down so we can buy but may have to move. We are looking to see what's out there but for now very little on the market in our bracket of the market.

Am resigned to having to wait, and in the longer term make sure I'm.in secure work. If prices drop by 30% surely we're looking at a full-on recession

We are as good as in a recession already. The economy is fucked.

mathis2006 · 23/06/2023 22:37

First time buyer here, we have a 15%/20% deposit and have just opened a saving account will we sit it out. Couldn't think of anything worse than buy at the top of the bubble at max interests. We are not young and with 3 kids, but our rent has just been fixed for 2 years and it is well below market rent around us. Our landlady doesn't have a morgage on the house so she is not affected by interest rates. We live in the SE so houses are not cheap, but so far our town is now 2% year on year on land registry. I am hoping for a 15% drop in the next 18 months.

FlyingSoap · 23/06/2023 22:52

mathis2006 · 23/06/2023 22:37

First time buyer here, we have a 15%/20% deposit and have just opened a saving account will we sit it out. Couldn't think of anything worse than buy at the top of the bubble at max interests. We are not young and with 3 kids, but our rent has just been fixed for 2 years and it is well below market rent around us. Our landlady doesn't have a morgage on the house so she is not affected by interest rates. We live in the SE so houses are not cheap, but so far our town is now 2% year on year on land registry. I am hoping for a 15% drop in the next 18 months.

We’re in a really similar situation! I heard savings accounts is the way forward. Like you, if you stretch yourself and buy at the top of your bubble and find yourself unable to afford it then literally what do you do?! I would feel very uncomfortable and stuck, and unable to sleep at night! Hopefully when rates stabilise we can find a bargain. Have you been to view any houses yet before halting your plans? Is your rental big enough for your family for now?

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mathis2006 · 23/06/2023 23:08

@FlyingSoap I have been on Rightmove for months, but not visited anything yet. To be fair I was expecting rates to rise and was waiting. Didn't expect them to rise that much though. We live a very spacious 4 bed, next to the school, so very happy where we are. We have had the same landlady for 8 years and she is very reasonable, it used to be her old house where she raised her own kids. I think she sees herself in us as a youngish family with young children. At a 4% rate the mortgage would still be £700 more than our rent. So now at 6% a 3/4 bed house is not affordable for us at the moment.

Xeren · 23/06/2023 23:56

FlyingSoap · 23/06/2023 21:09

Just worried affordability will be affected if we have a baby but nor do we want to put baby plans off

We went ahead with baby plans. Currently still renting. Will wait for about a year and see how it goes.

Realistically we’ll probably find a place outer city and commute in for work.

FlyingSoap · 23/06/2023 23:59

Xeren · 23/06/2023 23:56

We went ahead with baby plans. Currently still renting. Will wait for about a year and see how it goes.

Realistically we’ll probably find a place outer city and commute in for work.

That makes sense to do if you work inner city, or is remote working an option? Might make it easier to move further afield if so

I don’t blame you though, as far as I see it buying is not necessarily the smarter more secure option for everybody right now

OP posts:
Xeren · 24/06/2023 00:03

I can remote work but the Office Manager is a bit of an arse and wants everyone to come into the office at least a few days a week. My partner can’t remote work.

Since we have some money saved, we’ve decided to buy a car this summer and then next year look further away and drive in.

It’s so disheartening though. Worked so hard to save for a deposit and now just sitting on it. Don’t even know what it’ll be worth in the future re the rocketing inflation.

FlyingSoap · 24/06/2023 00:06

Xeren · 24/06/2023 00:03

I can remote work but the Office Manager is a bit of an arse and wants everyone to come into the office at least a few days a week. My partner can’t remote work.

Since we have some money saved, we’ve decided to buy a car this summer and then next year look further away and drive in.

It’s so disheartening though. Worked so hard to save for a deposit and now just sitting on it. Don’t even know what it’ll be worth in the future re the rocketing inflation.

That sounds sensible. It is disheartening and it’s all so so unknown isn’t it. Do you think you will go back to work FT after baby? They say it can affect what you can borrow

I also would like a new car asap and tempted to dip into house savings pot for it but cars depreciate don’t they… so it’s hard to know. Mind you inflation suggests they might gain in value too

OP posts:
Xeren · 24/06/2023 00:46

I’m part-time now to ease returning to work, but will eventually go back to full-time.

Haven’t even considered cars depreciating! It’s purely for functional reason. Figured since we can’t afford a bigger space, at least we can travel to more open spaces during the summer! 😂

What car would get if you did buy?

Fooksticks · 24/06/2023 01:45

If you bought now based on what you can afford and can stay in for 5-10 years you should be fine. It's those that bought 2-5 years ago with super low rates who should be concerned.

Being FTB you are understandably nervous. I was convinced we would be in negative equity with our first house, convinced we wouldn't sell our second house for what we paid, but actually both sales were fine.

We're now purchasing our 3rd house and I'm convinced again we won't be able to sell it for what we paid (l never actually intend to make money on a house) BUT the mortgage is very manageable and we will be here for at least 10 years.

Sometimes you've just got to take a punt.

But I do understand your concerns as I'm massively risk adverse and drive dh nuts with overthinking this type of stuff 🤐

Blanketenvy · 24/06/2023 03:05

FTB. Still looking, we have made a few offers but not got anywhere, things where I am are still going fast, for over asking and it's sometimes not even possible to get a viewing. It's crazy. I'd still buy now if I felt it wasn't overpriced, because I can't see prices dropping here much at all. It's really stressful though, given interest rates obviously our budget is reduced and we need to be careful to not over stretch ourselves. We are a bit older though (early 40s) so don't feel like we can just keep waiting. We have a 20% deposit but only looking around the £200k mark. In the meantime we will try and keep saving, although obviously can't save at the rate that inflation is increasing!

FiveShelties · 24/06/2023 03:07

Are you planning to only stay a short time in the house OP?

KievLoverTwo · 24/06/2023 05:36

The conversation I had with the OH yesterday is that I am so peed off with the housing market in the UK that I am really not sure I want to buy here at all anymore.

Many people have extremely justifiable reasons for wanting to buy: they have children they want to pass inheritance onto, they have family nearby they will need to care for in future, they need the security of a home that's theirs whilst their kids are being schooled, they have had a slew of bad landlords and having to move home that makes it feel buying is the only option.

But the truth seems to be, home ownership in the UK seems to be an obsession of ours that's not nearly as prevalent in a lot of Europe where folks have a lot more rights in rentals. In Germany, it's normal for rentals not to have kitchens because people take them with them from one rental to another! And LLs can just terf you out. I mention Germany because the OH was out there working when we got together five years ago, and he was none too happy to have to come back (my mum was dying, he did it to support me).

Anyway, I am now thinking: move to Ireland for five years, get EU citizenship back, move somewhere else in Europe and either rent or find somewhere that has a reasonable standard of living and reasonable house prices. We are so sick of watching the poorest in our society get screwed by our government, and even if labour get in next time, it will take 15 years to undo the harm the Tories have done to our economy.

I was looking at ONS stats yesterday. House prices rose 31% in the two years because they gave stamp duty breaks to stimulate the housing market. They did that because so much of our GDP depends on it, not because they think people should be able to afford to buy homes. It was a political decision that's going to have a knock on effect for years. I am so tired of them treating homeowners like pawns that I am really not sure I want to be a part of it anymore.

We have no kids and we now have no family ties. The OH can WFH, and if we keep our money earning interest and decent savings, he could go consulting instead of being permanent tied to The Man. Maybe he could work 6 to 9 months of the year and we can travel the rest of it.

It seems any extra wealth you have when you retire these days just gets ploughed into absolutely exorbitant care homes, so what's the point? This is maybe a bit bonkers and radical, but I have told him that the first sign he sees of me having dementia or similar, take me to dignitas, save us both the misery and have a better standard of living for the rest of his life.

And yeah, perhaps we will still consider buying if prices drop 30% and what we can afford will no longer make my disability worse or significantly affect his autism (noise sensitivity), but right now, I am firmly on the fence of whether to bother anymore.

Re 6% plus BOE base rates - if they reach that high, we are likely to enter a recession anyway, because of all the medium sized businesses who have relied on cheap borrowing to prop up their growth - they won't be able to afford their borrowing without downsizing anymore. It feels like we will hit that by December.

It feels so fked up that people are penalised for spending their money (inflation) by being forced to pay more on their mortgages. I don't feel like this should be the way an economy should work.