Soldato
That is likely to scupper you, however old it is. I do think it is unfair though. Unlucky, man.
How to get onto the housing ladder
- Thread starter OpenToSuggestions
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That is likely to scupper you, however old it is. I do think it is unfair though. Unlucky, man.
Associate
I managed to save £2500 a year during my apprenticeship so just over £200 a month.
4 years on, I bought my first house for £95k. In need of some work but still loving every minute.
Now the hard work begins doing it up.
4 years on, I bought my first house for £95k. In need of some work but still loving every minute.
Now the hard work begins doing it up.
Permabanned
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.
My missus and I are renting - £750 a month (between us) gone on that. The plan is to save 5k a year each for three years or so then buy a tiny flat. I think we need to be on roughly 30k gross each for that to work out. She'll be fine (solicitor), I may struggle (engineer).
If it was just me - I think I'd rent indefinitely.
If it was just me - I think I'd rent indefinitely.
Soldato
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.
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.
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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I think that's just the sense of security. If you own a home outright by the time you retire, there's some hope of getting by on a pension.
Plus paying rent every month feels like burning money. With a mortgage some fraction can be recovered later when the house is sold. I don't feel particularly strongly about that but the better half does.
Plus paying rent every month feels like burning money. With a mortgage some fraction can be recovered later when the house is sold. I don't feel particularly strongly about that but the better half does.
That is likely to scupper you, however old it is. I do think it is unfair though. Unlucky, man.
It doesn't scupper me any more on day to day stuff. Have a loan and credit cards, phone contracts etc. It's just something that will trip me up on a mortgage application
Renting it is then.. meh
Soldato
Indeed. I know many people, my Dad included, who has retired with his missus and own a huge house worth a massive amount of money, who do not need the space anymore. They are looking to downsize and spank the (my inheritance) cash on expensive holidays and fast cars. The gits.
Soldato
I'm so envious of Aberdeen prices.
Seems like it might be worth me just paying off my student loan though. Was going to keep it for a deposit or such like, but if its counted against you I might as well pay the thing off rather than paying whatever inflation is in interest..
kd
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.
I am 26 and I recently bought my house myself. I managed to secure a 25 percent deposit through savings but decided to go for a 15 percent mortgage as the rate difference was negligible. That extra 10 percent in the bank left me with a contingency should I be made redundant etc.
Just keep at it, I would suggest that you save for longer than 2 year ideal double that.
Just keep at it, I would suggest that you save for longer than 2 year ideal double that.
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!
Soldato
Oh I do not disagree with that. The UK market is a lot different to most of Europe where rent prices are a hell of a lot cheaper.
The market in the UK is being driven by a lack of decent housing which is, in part, being driven by people buying property to rent, to subsidise their poor pensions. This in turn is driving up the cost of housing to purchase to live in.
Associate
I thought it was difficult to buy when I bought three years ago. We needed a 10% deposit, 15k. We got a fixed rate for 5 years at 5.9%. Our repayments are £830 a month not including bills (extra £500 p/month). I consider myself lucky that I have a well paid job. I can understand why people at the age of 30+ still live at home these days.
You should be able to save 80% of your wage living at home. So as stated above get a good deposit and a few months worth of mortgage repayments as backup for a rainy day.
You should be able to save 80% of your wage living at home. So as stated above get a good deposit and a few months worth of mortgage repayments as backup for a rainy day.
Get your bank/building society to give you their basic credit card.
Use it for things like fuel & food. If you can force yourself to put money aside each month and are sensible (as you sound) you won't get carried away and spend money you don't have. It'll cost you nothing if you clear it in full each month, in fact you may even make a little by keeping your money in your account for longer (interest) and also earn cash rewards (dependent upon you card.)
5.9%, ouch.. I am currently tracking at +0.79%
OP: Just thought, set aside money for mortgage arrangement fee - typically £1k, may be less. Not sure if you can get this added to the mortgage (you used to be able to).
Also, if you possibly can when you do get a mortgage overpay it. You may find there is a limit in the first few years (e.g. you can't overpay by more than 10%), but its worth it due to the way compound interest works.
Far as pensions go - who knows, its a lottery. One thing is for sure though - if you aren't investing money you won't earn any interest !
No good relying on state pension - if it still exists it won't be enough to live on.
OP: Just thought, set aside money for mortgage arrangement fee - typically £1k, may be less. Not sure if you can get this added to the mortgage (you used to be able to).
Also, if you possibly can when you do get a mortgage overpay it. You may find there is a limit in the first few years (e.g. you can't overpay by more than 10%), but its worth it due to the way compound interest works.
Far as pensions go - who knows, its a lottery. One thing is for sure though - if you aren't investing money you won't earn any interest !
No good relying on state pension - if it still exists it won't be enough to live on.
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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This may sound stupid but what is the point in breaking your balls saving to buy a house?
Why not just continue to rent, in the good feeling that you can still afford to do things and go on holiday and no worries if the market crashes or have housing problems
A few of my friends have mortgages, but have been out about twice in the past year! Great life that is!
Why not just continue to rent, in the good feeling that you can still afford to do things and go on holiday and no worries if the market crashes or have housing problems
A few of my friends have mortgages, but have been out about twice in the past year! Great life that is!
Well if you do it properly you pay less with a mortgage than renting.