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Original poster

Did you use all your savings towards a house deposit?

33 replies

Caramels8 · 07/07/2024 13:55

I'm a first time buyer, looking to buy alone.

I've come to the realisation that I will probably have to use all my savings towards a house deposit which makes me slightly nervous as I've always had some money saved just in case (job loss, car repairs etc). Only having 1 income (I only earn 27k) obviously makes things a bit harder.

I guess it's the only way most people manage to get on the property ladder nowadays though. I know I can always save up again or put emergency purchases/repairs on a credit card, but it would be scary not having any savings.

It would be good to hear other people's experiences. Did you have to do the same, and if so, were you ok financially/saved up again or would you not recommend it? Am I silly for evening considering it?

OP posts:
Kinshipug · 07/07/2024 13:56

Yes we did, we had to scrimp for the moving costs and stamp duty. If you don't want to you'll have save more first or buy a cheaper house.

KnitnNatterAuntie · 07/07/2024 14:08

I was left with very little money when I moved into my house 15 years ago

But I didn't need to do any decorating and I already had furniture/household items so there was very little that I needed to buy straight away

I had a reasonable salary and was able to start saving again as my mortgage was less than I had been paying in rent

palomatoast · 07/07/2024 14:09

How long would it take you to save around £5 with your expected mortgage and expenses? If you could do it within 6 months then I'd take the risk on spending all your savings on the deposit and focus on living frugally for a while to hit that target. Alternatively do you have family that might be able to lend you a similar amount if something major happened? I spent a large amount of my savings on a deposit and so got all of my furniture from charity shops / FB marketplace while I saved up again. No regrets whatsoever.

If you're going to empty your savings account then I'd recommend getting good insurance that covers things like storm damage, leaks etc. You can also get cover for your boiler, plumbing etc. that would mean you're not out pocket if any of that packs up. Ultimately though I'm lucky that if I could go crying to my mum and dad if I really needed to (although it would kill me to do it!).

TheLightSideOfTheMoon · 07/07/2024 14:09

We kept 15K for solicitors fees, stamp duty and decorating but other than that it all went down as a deposit.

SBHon · 07/07/2024 14:13

Yes, and borrowed money. Don't forget solicitors, stamp duty, moving costs (plus misc bills like setting up new internet, insurance etc).

LindaDawn · 07/07/2024 14:17

Yes. Bought 3 times and always used all our savings to buy and max out on the mortgage. Admittedly this was a very long time ago. Also none of the flat/houses needed immediate work to so didnt need any immediate funds.

Movinghouseatlast · 07/07/2024 15:14

Yes, had literally nothing left. We started saving again straightaway though.

MaryGreenhill · 07/07/2024 15:17

Yes we needed every penny
Good luck OP

JumpstartMondays · 07/07/2024 15:19

Yes we did. I also lost my job 22 days after getting the keys from believing I was in a secure role. I'm so glad we didn't mortgage ourselves to the hilt!

Took us 7 years to save up to start renovating and decorating!

Saintmariesleuth · 07/07/2024 15:21

Unfortunately we needed every penny too OP. There was nothing left over after paying for solicitors etc. A friend who bought her home alone was in the same boat.

It was a very uncomfortable feeling. We were able to start rebuilding our savings reasonably quickly, as at the time our rent was equivalent to our new mortgage. Mortgages rates however were a lot lower in 2017, and we were well protected from sharp rate rises as we were in a 5 year fixed term.

LaWench · 07/07/2024 15:23

We saved some back as we needed to furnish and kit out the whole house. Started completely from scratch.

At least moving costs were £0 as we o ly had our clothes to move in with. Blow up beds and borrowed garden furniture.

Peoneve · 07/07/2024 15:25

Depends on how secure your job is/how quickly you could get another one
We always put every penny into each house and have never really had any savings but have had jobs where you would never be out of work. Pension and housing has always been above savings.

DeedlessIndeed · 07/07/2024 15:25

No, for our first flat we kept an emergency savings buffer (I think 3 month's take home pay?)

On top of that we had to use savings for things like solicitors fees, moving costs, double mortgage payments, mortgage arrangement fee etc. Probably was £5K or so for that.

Moving to our house was more sketchy as it is an old listed building, that screams money pit. We had to keep quite a large buffer back and really had to focus on building this up.

Lighttodark · 07/07/2024 15:27

No and wouldn’t recommend it in case of job loss etc

Thingsthatgo · 07/07/2024 16:30

Yes, we did. Every penny, in fact it was good that exchange/completion took a bit longer than expected because we needed the extra month to save. After all the moving bills were paid we had nothing and had to pay for stuff on the credit card until payday. But, we were, and still are, extremely happy with our house. We also knew that we could save £1k a month if we were careful with our money. We have now built up our savings again.

ACynicalDad · 07/07/2024 18:10

We wiped ourselves out and had to borrow the last few grand from my parents, it meant we got a forever home rather than a five-ten year home. We've got by. If you lose your job you can usually get a mortgage holiday for three months. If I could get a mortgage that let me keep £10k in savings I would, but if it was the house I really wanted and I would have space to save after just get the house you want.

sugarbyebye · 07/07/2024 18:25

Yes every penny. And had to eat beans and rice for months.

Papricat · 07/07/2024 22:19

Kept 100k in emergency fund for our household given uncertain economy.

Twiglets1 · 08/07/2024 06:43

Yes we’ve spent every penny in the past to get the best property we could possibly afford.

I know you’re supposed to have an emergency fund, we just never quite managed it.

DrySherry · 08/07/2024 06:52

Your a first time buyer, you need to keep some funds for unexpected costs AND peace of mind.
Your buying on your own, you need to keep some funds for unexpected changes.
Your buying during an uncertain time in the market, keep something back just in case values soften.

Gooselady · 08/07/2024 06:59

Used all my savings and then had to watch my cashflow like a hawk. One year on and I've got my emergency fund saved again. I took a risk, but it was worth it. How long will it take you to save an emergency fund? Do you have anyone that can lend you emergency fund money if you really need it? That might give you peace of mind.

drowninginsick · 08/07/2024 07:01

I did for my first house as I was buying alone and it was the only way, just considered credit cards my buffer for the first year 😵‍💫 it was fine in the long run though and so glad I got on the ladder

Gettoachiro · 08/07/2024 07:02

Yep we had nothing left and had to get a loan a few months later to replace the boiler and all of the radiators (we knew we would have to when buying).

peanutbutterkid · 08/07/2024 07:36

I am buying on my own, post-divorce.
(My dream forever home would cost about £2.1mln more than I have, lol)
I'm on fixed term contracts so I kind of need to show I have cash reserves excess to the house deposit, so they can't fuss about one of my FTC only having 8m left on it.
btw, The FTCs are usually renewed, I feel more secure on FTC than I would in a "permanent" position.

Am also concerned to have some cash reserve in case my car dies at short notice, lol.
Am thinking to do a bit of Airbnb for extra income stream, once I'm in the property.

TheChosenTwo · 08/07/2024 07:40

Once the solicitors were paid the packing and removals company pretty much cleaned us out.
And I’d do it again to be in the position we are in now. However we are incredibly fortunate that if anything urgent had cropped up, family would have lent us the money. We didn’t need to ask but we knew we had a safety net of sorts.