Renters pushed to breaking point as Britain's selfish homeowners gloat their hands

greensalad

ukcarper wrote: »

What about help to buy 3. Saving for deposit while renting has always been a problem the only option is to houseshare while you save.

What is H2B3?

ukcarper

greensalad wrote: »

What is H2B3?

http://www.hsbc.co.uk/1/2/mortgages/help-to-buy?mtp=search&WT.mc_id=HBEU_HSBC_PPC_Generic_Mortgages__DR_Google_5&WT.srch=1

Not sure how widely it's available or what type of property it applies to but could be worth a look.

Dasa

ukcarper wrote: »

What about help to buy 3. Saving for deposit while renting has always been a problem the only option is to houseshare while you save.

Someone I know that's renting is paying more rent than a mortgage would be. They keep saying they want their own house but not prepared to go without anything. They want a house as good as the one they're renting, won't even consider getting one that needs doing up and still go on their holidays abroad. They expect to do all these things but moan they can't save for the deposit.


When I bought my house, I went without, bought second hand, no holidays and had two jobs, worked 9-5 and then behind the bar in a club 4 nights a week until 3.00 am. Interest rates were 15%.

caronoel

greensalad wrote: »

Because our struggle is saving the deposit, not paying the mortgage. Most of our money is spent on rent, leaving not a huge amount left to save each month.

20% deposit on £250k = £50k. We have no hope in hell of saving that. Even with steady wage increases, we would never be able to save £50k AND keep in line with the rate at which the house prices are increasing. Might take us 7 years to save £50k. By then, £250k house has gone up to another £100k. Now, required deposit is £70k. Not to mention, in 7 years I might not want a 2-bed flat any more.

Impossible moving target.

H2B would help us jump a little higher in terms of securing house price at a lower cost. We could save 5% deposit in maybe 18 months, a year if we really tried. House price will have gone up only a little.

Not to mention, there is a serious lack of housing even in those ones you shared. Once you strip out the shared ownership, retirement and BTL-only there are only 8 properties in the town and wider area. There are going to be a lot more than 8 people vying for a 2-bed flat, not to mention those who can offer over the asking price (BTL investors).

You have three points there, all of which sound like excuses for action:

1) Can't save 20% for a desposit

Plenty of 95% mortgages available to FTBs:
http://www.moneysupermarket.com/mortgages/search/results/?ltv=94.0&goal=MOR_FTB

2) Limited supply in Woking

There is a world beyond Woking

Have you looked at:

• East Croydon or surrounds (< 30 minutes into Victoria or London Bridge, and close to Gatwick)
• Guildford - plenty in that price range and you get a seat into London
• Luton - much cheaper than Woking, with a grammar school system and some nice villages a drive away. Very regular train service - 35 minutes to Kings Cross

Or some place on the Crossrail route:
http://www.crossrail.co.uk/route/maps/

Prices on Crossrail will go bananas once the line opens

3) Competing with BTL investors

From a vendor's view point, an FTB is in just a good position as any BTL because both have no chain.


You really are just looking for excuses not to buy.

If you put your mind to it, and take the blinkers off on HTB, you will see you have a whole universe of choices before you and you really are one of the lucky ones who is in an eminently strong position.

Go for it!

cells

caronoel wrote: »

You have three points there, all of which sound like excuses for action:

1) Can't save 20% for a desposit

Plenty of 95% mortgages available to FTBs:
http://www.moneysupermarket.com/mortgages/search/results/?ltv=94.0&goal=MOR_FTB

2) Limited supply in Woking

There is a world beyond Woking

Have you looked at:

• East Croydon or surrounds (< 30 minutes into Victoria or London Bridge, and close to Gatwick)
• Guildford - plenty in that price range and you get a seat into London
• Luton - much cheaper than Woking, with a grammar school system and some nice villages a drive away. Very regular train service - 35 minutes to Kings Cross

Or some place on the Crossrail route:
http://www.crossrail.co.uk/route/maps/

Prices on Crossrail will go bananas once the line opens

3) Competing with BTL investors

From a vendor's view point, an FTB is in just a good position as any BTL because both have no chain.


You really are just looking for excuses not to buy.

If you put your mind to it, and take the blinkers off on HTB, you will see you have a whole universe of choices before you and you really are one of the lucky ones who is in an eminently strong position.

Go for it!

The problem is when there is a lack of new build homes then its just a game of musical chairs. If they did go for it and buy its just someone else who didn't.

Renters as a group can't on net become buyers. In fact for over 5 years the opposite gas been true with homeowners declining and becoming renters

so although you can advice an individual to just go for it, they can't as a group it just won't work

caronoel

cells wrote: »

The problem is when there is a lack of new build homes then its just a game of musical chairs. If they did go for it and buy its just someone else who didn't.

Renters as a group can't on net become buyers. In fact for over 5 years the opposite gas been true with homeowners declining and becoming renters

so although you can advice an individual to just go for it, they can't as a group it just won't work

You can only take responsibility for your own actions though, and not for the herd.

cells

ctogether wrote: »

You can only take responsibility for your own actions though, and not for the herd.

We are smart monkeys not dumb cows

We can work together to achieve better outcomes

greensalad

caronoel wrote: »

1) Can't save 20% for a desposit
2) Limited supply in Woking

You really are just looking for excuses not to buy.

1) Can't save 20% for a desposit

My understanding was that 20% was standard and that 5% was very much warned against. Please correct me if I'm wrong (I'd love to be wrong on this!)

2) Limited supply in Woking
Definitely a world beyond Woking, I am 100% happy not to live in Woking. We are looking in Surrey, Kent etc. Croydon definite possibility. Guildford is far far far more expensive than Woking, I would LOVE to live in Guildford (we previously rented in Guildford but moved to Woking to save money). Luton is the only one I will not look at, sorry but Luton is absolutely grim.

Also, if I was looking for an excuse not to buy why would I be here looking for advice in the first place?!

Cornucopia

greensalad wrote: »

1) Can't save 20% for a desposit

My understanding was that 20% was standard and that 5% was very much warned against. Please correct me if I'm wrong (I'd love to be wrong on this!)

The bigger the deposit the better, but FTB-ing isn't forever, it's a one-time, first-step kind of thing. If can start paying down the mortgage soon after buying (very MSE) even better.

2) Limited supply in Woking
Definitely a world beyond Woking, I am 100% happy not to live in Woking. We are looking in Surrey, Kent etc. Croydon definite possibility. Guildford is far far far more expensive than Woking, I would LOVE to live in Guildford (we previously rented in Guildford but moved to Woking to save money). Luton is the only one I will not look at, sorry but Luton is absolutely grim.

Kent will generally be the cheapest, nicest option from that list. Surrey is particularly expensive. Kent has several commuter routes into stations all round Central London (Victoria, Charing Cross, Blackfriars, Cannon Street and St Pancras).

Suggest you start your own thread, with your detailed requirements, and people who know the area can make suggestions. If you are looking for a 2-bed flat, prices (just within commuter distance) start from £120k, and 3-bed houses from £175k.

greensalad

Cornucopia wrote: »

The bigger the deposit the better, but FTB-ing isn't forever, it's a one-time, first-step kind of thing. If can start paying down the mortgage soon after buying (very MSE) even better.

Kent will generally be the cheapest, nicest option from that list. Surrey is particularly expensive. Kent has several commuter routes into stations all round Central London (Victoria, Charing Cross, Blackfriars, Cannon Street and St Pancras).

Suggest you start your own thread, with your detailed requirements, and people who know the area can make suggestions. If you are looking for a 2-bed flat, prices (just within commuter distance) start from £120k, and 3-bed houses from £175k.

Yes, I grew up in (West) Kent so it's no issue to me. Loathe to move back to Tonbridge (where I'm from) but the area is fine with me. East Kent, less desirable but cheaper. Maidstone, Rochester etc would all be fine by me. Would mean leaving my job but confident there is enough around.

I did start a thread about it but it fizzled out. Currently I do not have a deposit saved (still paying off debt as you can see from the sig) but partner has no debt and I am a few months away from debt-free so we are just trying to understand what on earth we can do and what our target is. Tough to make a strong, concerted effort to save when you don't know what you're aiming for (at least that's what I'm struggling with at the moment!)