How is anyone supposed to get a mortgage?
Rent prices are so high, and salaries aren't getting any higher (but house prices are)... How is anyone supposed to get a mortgage?
How can we afford a mortgage without waiting for zillions of years? Well, how can ANYONE, without a trust fund? Surely something should be done about it...
How can we afford a mortgage without waiting for zillions of years? Well, how can ANYONE, without a trust fund? Surely something should be done about it...
(edited 3 years ago)
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u dont
Maybe live with your parents and ask them to remortgage on your name. That is the best option. It would be cheaper plus when they die at least you will get the house still
The simple answer is that you buy your first home up north if possible. You can get a fairly decent family home for less than £200k in Manchester-Leeds-Nottingham and once that mortgage is paid off (granted you still need to save the deposit) then you can use that home as collateral for a mortgage down south.
Or you get a bit lucky. By having parents who are disabled i may be able to use their right to buy to get a £110k+ property for about £50k.
Or you get a bit lucky. By having parents who are disabled i may be able to use their right to buy to get a £110k+ property for about £50k.
On the credit score thing: you need to be out of your overdrafts consistently. That should be your first 'savings' goal. You say you don't have money to spare for credit cards - proper use of credit cards shouldn't cost you anything and will raise your credit score. You should be able to get a credit card with a low limit (and probably a relatively high rate) quite easily from your bank - set up a Direct Debit to pay it off in full every month and simply do some of your regular spending from that card rather than with your debit card or cash.
On the savings thing: You'll probably need to prioritise the house over all other savings goals, probably including your wedding, I'm afraid. Remember that once you're in a house you own, the money spent on the mortgage becomes, in a sense, the house savings, allowing you to save for other things.
It may also be necessary to revise downwards your homebuying goals. If you've been looking at prices for 2 bed houses, try looking at 1 and 2 bed flats. It gets you on the ladder, and especially if you're in the same area you want to stay in, a rising tide should lift all prices relatively proportionately. How I think of it is "A 1 bed flat is always going to be worth a 1 bed flat, no matter what happens to the prices"
On the savings thing: You'll probably need to prioritise the house over all other savings goals, probably including your wedding, I'm afraid. Remember that once you're in a house you own, the money spent on the mortgage becomes, in a sense, the house savings, allowing you to save for other things.
It may also be necessary to revise downwards your homebuying goals. If you've been looking at prices for 2 bed houses, try looking at 1 and 2 bed flats. It gets you on the ladder, and especially if you're in the same area you want to stay in, a rising tide should lift all prices relatively proportionately. How I think of it is "A 1 bed flat is always going to be worth a 1 bed flat, no matter what happens to the prices"
This is why 20 and 30 somethings today have been labelled generation rent. For many the only way to save up a big enough deposit to buy somewhere is to live with parents for a few years first. And being in their 50's shouldn't stop your parents getting a mortgage, my parents got divorced and got mortgages for their own places at 55 and 57 respectively in 2008, after the financial crash.
(edited 3 years ago)
until quite recently young people didn't expect to buy a house, they expected to rent. Now we are going back to those days becuase we have a government that believes in increasing inequality.
It isn't all bad - when you have a house you are reponsible for all the maintenance and repair and can be spending a lot of time and money on that.
I wouldn't spend 8k on a wedding while trying to save for a deposit, that's just waste. If you really want a house you scrimp and/or take extra jobs until you have the deposit.
It isn't all bad - when you have a house you are reponsible for all the maintenance and repair and can be spending a lot of time and money on that.
I wouldn't spend 8k on a wedding while trying to save for a deposit, that's just waste. If you really want a house you scrimp and/or take extra jobs until you have the deposit.
You join the Labour party and campaign for affordable homes and stop the tories inflating the housing bubble by allowing overseas investors to use property as a zombie investment or selling social housing or allowing people to convert pension annuinties into cash to invest in property
Tory econ 101 blow bubbles
Tory econ 101 blow bubbles
To get on the housing ladder you need to be a extreme cheapskate. Lucky for you I am one of the most tightest scrooges your ever encounter online.
So how can you get onto the housing ladder.
1. Get a low rent. Move in with your parents and live in a overcrowded house for 5-10 years.
2. Be aware of every variable cost such as electricity, gas, food and even water rates! Yes that is right water meter. Watch it like a hawk.
3. If you can get something for free take it. It doesn't matter what it is just take it. Everything has value. Even your rubbish.
4. Keep to your budget and deprive yourself of everything.
You want to have about £500-600 excess a month. In 5 years that may be £36,000-£37,000 depending on how well you have saved.
It is also important not to switch bank account during the period which you save. This is so your bank can rate you. You also need to save every single bank statement.
Credit score or FICO score can be built up. I recommend you take a bank account that has a overdraft scheme but never ever use it. Also do not use a credit card. If you mess up even once on one of these credit builders it can ruin your credit rating. Take something which you can't mess up on like paying £10 every month for some item you buy on finance.
FICO is just about making payments over time.
And then your just about set.
But if you want to live a good future on a working class wage I would recommend leaving Sussex. Move up north along the railway. Your get a better quality house and you can commute to London for work. You should think about the quality of life instead of being in a main hub.
So how can you get onto the housing ladder.
1. Get a low rent. Move in with your parents and live in a overcrowded house for 5-10 years.
2. Be aware of every variable cost such as electricity, gas, food and even water rates! Yes that is right water meter. Watch it like a hawk.
3. If you can get something for free take it. It doesn't matter what it is just take it. Everything has value. Even your rubbish.
4. Keep to your budget and deprive yourself of everything.
You want to have about £500-600 excess a month. In 5 years that may be £36,000-£37,000 depending on how well you have saved.
It is also important not to switch bank account during the period which you save. This is so your bank can rate you. You also need to save every single bank statement.
Credit score or FICO score can be built up. I recommend you take a bank account that has a overdraft scheme but never ever use it. Also do not use a credit card. If you mess up even once on one of these credit builders it can ruin your credit rating. Take something which you can't mess up on like paying £10 every month for some item you buy on finance.
FICO is just about making payments over time.
And then your just about set.
But if you want to live a good future on a working class wage I would recommend leaving Sussex. Move up north along the railway. Your get a better quality house and you can commute to London for work. You should think about the quality of life instead of being in a main hub.
Welcome to the harsh reality of life. It is so unfair that we can not move out at age 19 
. Be happy you have somewhere to live, billions of people would kill to at least have a reasonable enough home. If you desperately intend to move out, then study hard and work hard for a top city job. That is exactly what I am doing.
. Be happy you have somewhere to live, billions of people would kill to at least have a reasonable enough home. If you desperately intend to move out, then study hard and work hard for a top city job. That is exactly what I am doing.(edited 3 years ago)
This might sound extreme but it will give you the independence you need. Go get a trailer caravan and live on a camp site. If you can make friends with a group of travelers then that would be great. Most Gypsies are decent people and very family orientated. If your a couple who behave and turn the lights off around 10pm your have no problem with them.
A lot of people treat Gypsies badly but the Irish travelers for example are one of the most productive nomadic people your ever encounter. You could also score a job off them too. They do things a little differently but keep that hush hush.
A lot of people treat Gypsies badly but the Irish travelers for example are one of the most productive nomadic people your ever encounter. You could also score a job off them too. They do things a little differently but keep that hush hush.
Most people in our generation are expected to live with parents longer, so why not accept it?
Business is business, if landlords need to hike up prices because land value is increasing it is by no fault of their own. If you really seek cheap areas look further out the cities and more so up north.
Why can you not afford to go to university? I am extremely poor and come from a working class background. I have not paid a penny yet to go, so what is the problem?
Business is business, if landlords need to hike up prices because land value is increasing it is by no fault of their own. If you really seek cheap areas look further out the cities and more so up north.
Why can you not afford to go to university? I am extremely poor and come from a working class background. I have not paid a penny yet to go, so what is the problem?
The idea I get from your last point is you expect the tax payer to fund your new home. Please explain why someone like me who will probably never get his own home have to pay towards your new home?
(edited 3 years ago)
If your rent is too high then you should move to a different city.
Rent prices aren't universal and they normally correlate with job availability, salaries, amenities, crime, size, neighbours, reputation.
If you want a house in Islington but expect to pay 400 pounds then you're overvaluing your capabilities. Stick to where your budget allows you to, not where your dreams want you to. Go to the poorer parts of your town/city and rent there. You'd have to put up with crime and long travel but hey that's why the price is low.
Rent prices aren't universal and they normally correlate with job availability, salaries, amenities, crime, size, neighbours, reputation.
If you want a house in Islington but expect to pay 400 pounds then you're overvaluing your capabilities. Stick to where your budget allows you to, not where your dreams want you to. Go to the poorer parts of your town/city and rent there. You'd have to put up with crime and long travel but hey that's why the price is low.
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