To buy or not to buy?!

***_Laura_***_2

Hello everyone, I am currently living with my fiance in a flat and we have been wanting to buy a house for a while. We want to do things sensibly so are thinking of moving back home to my parents and save a deposit for a house and extras then look for a mortgage and house.

I just feel worried about everything. I am 24, fiance 25. My oh works full time, I work 30 hours but temporarily am working more, we have both been at our jobs for over 2 years and are not in any debt (yet of course!)

Anyone have any advice on what we should do? I have been browsing MSE in regard's to mortgages/houses and it seems so daunting! We cannot stay at this flat much longer because neighbour's below are so noisy, rent is going up plus there's lots of damp!!

Thanks!

Person_one

What exactly is worrying you? Its always daunting the first time but its not really as scary as it seems I promise!

I take it you don't have any savings yet? The only thing you can do really is try and scrimp every penny until you have a deposit. Moving in with parents can be a good way to do it but make sure its a living situation you can cope with long term as there are other ways to live cheaply, such as lodging, or sharing a 2 bed flat with another couple.

Person_one

MadnessOfHPC wrote: »

But you intentionally ignore the advice of a Shared Ownership scheme or a Joint Mortgage. Both of which would get her happily on the ladder before any scrimping and saving every penny.

I couldn't in good conscience recommend shared ownership.

Her mortgage will be joint with her fiance, I'm not sure what else you might mean.

Running_Horse

The best advice is keep saving.

Shared ownership is OK for a few in high price areas buying a family home for life. But not best for those who could afford to buy anyway if they saved up a little more.

By the time you have the deposit and legal costs you will be wiser and more confident about the process, and maybe more secure and earning more at work.

Henry_P_Chester

Saving is the key. You need to concentrate on saving as much as possible. Moving back in with your parents would be a good idea. The more you save the better smaller mortgage you will need and the better chance you will have of getting approved.

I would not even consider shared ownership. You combine the worse part of buying with the worse of renting. You may as well just rent a house.

MobileSaver

MadnessOfHPC wrote: »

But you intentionally ignore the advice of a Shared Ownership scheme or a Joint Mortgage.

I echo Person_one, Running Horse and Chester; based on the initial information from the OP, suggesting a Shared Ownership scheme would be very poor advice.

OP, you both simply need to save, save, save until you have a sensible deposit and then go and buy your dream house together.

The vast majority of home owners who are having problems now are those who had tiny or no deposits and so never really had any equity in their homes. In the short term house prices can go up or down but the more equity you have in your house the less this affects you if prices are down.

Ultimately owning your own home is one of the best things you'll ever do - good luck on your FTB journey.

***_Laura_***_2

Thanks everyone for the comments, you've really helped us make up our mind, will be talking to parents tomorrow although it was their idea for us to move back but I obviously want to let them know what they are letting themselves in for!! Just got to give our landlord notice now and sell most of our stuff!

mrstinchcombe

MadnessOfHPC wrote: »

How old are you? People suggesting you and your fiance move back into your parents is shocking advice. As I said there are fantastic schemes out there, like Shared Ownership, Joint Mortgages, etc... to get such FTBers like yourself safely onto the ladder and living the dream. I think your parents deserve a bit of time to themselves now. Let's not be selfish.

SHared Owndership is NOT good advice.

casper_g

MadnessOfHPC wrote: »

How old are you? People suggesting you and your fiance move back into your parents is shocking advice. As I said there are fantastic schemes out there, like Shared Ownership, Joint Mortgages, etc... to get such FTBers like yourself safely onto the ladder and living the dream. I think your parents deserve a bit of time to themselves now. Let's not be selfish.

Two generations of a family living together isn't something everyone likes the idea of these days, but it's pretty common and works well for billions of people around the world (literally biillions, I am sure). I think it's bizarre to call suggesting considering it "shocking advice". I understand shared ownership can have many problems with it, and I'm not sure what you mean by a joint mortgage -- are you suggesting a joint mortgage with the OP's parents? If so, that would be asking them to take a big risk with their finances, potentially much more damaging than having their daughter and her partner live with them -- a course of action they have apparently suggested themselves!

myhouse_2

Regarding this recent boom in Shared Ownership which every builder seems to offer now, it just seems to me that this whole system has been developed because the builders know that their houses are now too high for people to afford. To try to keep prices high and encourage people to buy, they have introduced a method to help people to keep overpaying.
Best to sit tight and save enough money to buy outright.