How to get onto the housing ladder

OpenToSuggestions

OpenToSuggestions

OpenToSuggestions

Soldato
Joined
5 Aug 2006
Posts
11,361
Location
Derbyshire
Hey all.
I am 24 and have recently left University for a full time job. I plan to start saving towards a house deposit, but what is the amount that I realistically need?
Home life is good and very easy, but I lived away from home until rectently and find that home somewhat makes me feel like a child again as I am not standing on my own two feet.

I have moved back home as my job is only 13 miles away. This coming payday I am starting to live my life as though I have a mortgage, which means each pay I intend to put away £500 towards a deposit. I currently only pay £200 to my parents for cover. Whilst I realise £700 is less than the cost of moving out, I feel this is a good starting point. I occasionally go out for a drink but I like my PC stuff and have an MX5 as a hobby. Aside from student loans I have no outstanding credit.

There are lots of schemes out there but I wondered what schemes exist that people on here have used?
I am interested in what experience OCUKers have had of getting onto the property ladder. I have no desire to rent. If I must stay at home for 2 years to get a decent deposit together then that is fine with me.
 
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Thanks for the comments so far :).

PapaLazaru said:
£500 per month over 2 years is only £12k. A 90% mortgage is pretty much best you can hope for at the moment, though I expect that we may well see the 100% mortgage coming back in, in a few years.

That can afford you a £120k home. You will need to be earning over £25k per annum with no financial liabilities to obtain a mortgage for a property worth £120k. Student Loans are taken against you as well so you will need to be earning £30k plus and then some if you have student debts.

Your have to bear in mind that the average age of the first time buyer in the UK is now 37 which says something about the state of the property market.
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I am earning just over the 25k area and have only 5k student loans against my name. The only direct debits I have are for a sim only contract and contact lenses! No credit card debts.
I enjoy my job and the pay is pretty good for a graduate, but **** me is Mr Average stuck! It would be so easy* if I was buying with somebody.

My parents are willing to lend me some money to offset some of the mortgage, but I really couldn't pay them back in the foreseeable future.

If I have to I will buy nearer to Stoke where the prices are lower, but I would never buy a house in a scabby area that I would really struggle to sell.

I realise I would only have saved 12k after two years but this would be pure house money. Other things such as saving £100 each month towards a new car (so in 3+ years time I can get a newer one) would be completely separate.

*In comparison.
 
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billysielu said:
There's a site called CreditExpert you can sign up to.

FYI - Not using a credit card works against you. You should use your credit card and pay it off each month, it's proof you will use your credit and can pay it off in a reliable fashion.

Incidentally, credit cards should always be used for online purchases because you're spending the bank's money not yours - so it's easier to resolve incidents of fraud. It also means the money is in your account until the end of the month, so you get 0.01% interest or whatever.
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I may get a credit card with some cashback then :).
I have a LLoyds TSB one that I never use, and a Halifax one that has no fees for abroad usage.

PapaLazaru said:
Which is what most people do in Europe anyway. We are slightly obsessed with buying in the UK. Go to Germany for instance and the vast majority rent all their lives.
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If renting worked out cheaper over my lifetime then I would rent. If I got a mortgage today, when I am 49 I would own the property and owe nothing.
Also, I would feel no desire for doing the house up as it would never be mine.
 
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Crafty said:
Look at rent rates today, you'd need a good pension to support them.

The days of good pensions are long gone, it frightens me to see people in their late 20s / 30s / 40s with no pension.
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I fully agree. Many people have no confidence that they will be allowed to retire and use the pension and/or the pension won't be worth anything by the time they get there.

My employer matches my contributions up to 6% of my salary each year, but who knows what that is actually worth. I am debating not paying into a pension and using the £100 per month to overpay a mortgage!
 
Crafty said:
5.9%, ouch.. I am currently tracking at +0.79%
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Please tell me more :).
A quick Google on the forecast for house prices over the next five years shows that in 2013-2014 house price increases are expected to be below inflation.
If I start saving now then in early 2014 I may be ready to buy. Family members are suggesting that they're willing to help me out, but I would much prefer to pay for the house all by myself, but whether that is possible or not who knows.
 
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Morbius said:
I'm looking around at houses at the moment and it seems that your choices are very limited if you're single.
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I have that issue!

If I someone to move in with (hopefully on a similar salary) we would have been looking at a better house in the first place, however I am single and as such will be buying alone.

Vauxmad said:
Weston COyney is not bad area. Looked at a few houses there myself before buying my place in sneyd green (this house won because its got a huge garage! 33ft by 16ft :D As an idea for price it was £123k for a 3 bed semi in a quiet culdesac)

Got a couple of friends who live in weston coyney too
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Today is a nice day. I might go for a drive over to that area for a look around as I need to get a feel for the area I plan to live in!
I found a nice looking 3 bed detached house with a brick single garage for £105000 in Meir.......I hate to think what the area is like!!!

I don't think I will be buying the 4 bed end council terrace for £53000........
 
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Guest2 said:
Probably already been said but have fun living at home for another 4 or 5 years

Personally I would rather rent in a location I like and not worry about saving too much each month. I cam currently 28 and been renting (1 year in student hall) since I was 18.

I dont have much in savings but then I have been going on at least 4 holidays a year. I would rather rent a nice place and do stuff than save, not go on holiday and buy a house I dont like in a location that doesn't suit me
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No wonder you cannot buy if you are going on four holidays every year! :eek:

Why would I be living at home for 4-5 years? I am now saving £500 per month and will have £10000 in early 2014.
 
I went for a drive today to get a feel for a few areas. I am not ready to buy right now but want to be in a good position when the time comes.

I was looking at areas between Uttoxeter and Stoke On Trent.

I have drawn the following conclusions from today:

Houses
New builds are extremely small and you often get one single parking space that is an allocated space not a driveway.

Locations
Blythe bridge - No comment as have not checked there yet.
Weston Coyney - Seems OK but a little too close to Meir.
Meir - What an absolute **** hole. The locals were middle aged women in trackies and young smoking mums with pushchairs. Loads of run down shops and poorly kept council houses. Chavtastic.
Meir Park - Looks like a really nice place, but out of my price bracket.
Meir Heath - No comment as have not checked there yet.
Meir Hay - Seems OK and the house prices are good, but is further away from my work and parents.
Tean - In between work and parents which would be a nice location. Prices seem OK and the area seems nice.
Cheadle - Seems like a nice little town. Found a lovely 3 bed semi that has been renovated for £115000 with a decent driveway.
Uttoxeter - Lived here since 2002 and I think the area is good, but the high street is terrible. For my budget I would be right at the bottom end of the market.

Ideally I would buy in Uttoxeter, but the issue with this is that I would be buying right at the bottom end of the market. Cheadle seems a nice middle ground as it has Stoke On Trent in the address (i.e. it is cheaper than Uttoxeter so I would have more house choice) yet is surrounded by fields and seems decent.
 
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Can somebody explain a mortgage question to me:
(I will make up numbers)

Why when it says 3.8% with a £0 booking fee is the 'overall cost for comparison' 4.7% when the mortgage is a 2 year deal. Is it really a 5 year deal where the % goes up in years 3-5?

I am usually pretty sharp when it comes to numbers but I am a little confused right now :p. I get the feeling that the 'initial rate' is all fancy but later on it goes up, just like my ISA has a good (well that is debatable) rate for 1 year then goes to a really rubbish % and hopes I don't notice.

I have found sites (example link below) that explain it, but I am thinking that the 'overall cost for comparison' one is the interest rate to properly look at.
http://www.cheltglos.co.uk/guides/product-tables-explained4.html
 
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Relapse said:
House prices have hardly moved for two years, but the inflation rate is around 2.7% at the moment, so property has got cheaper, relatively speaking.
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I agree, buy buying a house that is very slowly losing value is still better than renting.

I have viewed four houses in Meir Hay this week, which is east of Longton (Stoke On Trent) and seems to be one big housing estate.
 
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