Cant get on property ladder

Pixiepooh

Hi guys. Hope someone can give me some help and advice.... my friend is trying to get a flat for the 1st time but no one will touch her unless she has a guarantor or a massive deposit! To which she cant get either. I cant be her guarantor as my financial situation wont allow it.... she has no one she can ask. Is there anything else she can try??? :money:

MovingForwards

Look at cheaper properties in a cheaper area, get a better paid job, speak with a whole of market mortgage broker, check all credit reference agencies reports to see if there are late / missed payments, defaults, CCJs, IVA, bankruptcy etc.

Mr_Singleton

Welcome to life!

I'm in London and don't think it's possible to get a 1 bed flat for much less than £200k

Chapter24

Mr_Singleton wrote: »

Welcome to life!

I'm in London and don't think it's possible to get a 1 bed flat for much less than £200k

We're in the south east, same here, really. Not sure where the OP is, but nowhere's going to let you have a mortgage unless you've got a deposit saved.

A 2-bedroom flat round here would set you back about £275k
Rent on a 2-bed costs about £1200 a month :eek:

I've no idea what young people are supposed to do, really, other than live with their parents till they're 40!!

pattypan4

we lived with parents and saved like crazy, rode bikes everywhere, no phone not much drinking etc. Fact of life then too, had to save hard to get the deposit, once we had the deposit then we got married. Husband had 2 jobs, I had a weekend job. Sheer hard work and no handouts from anyone and nothing expected


Two friends could do it, half and half for a 2 bed flat, at least it would get them on the ladder

Davy_Jones_II

The traditional way is to cut back on all unnecessary spending, find any way you can to earn more and then to just save as had as you can.

I’m only just becoming middle-aged, not old, but as with generations before there were just very few things that we could buy or do when starting out. Drinks out were rare, meat was a treat, a special treat was four cans of lager and a rented video, we did not take holidays, and so on.

We also both worked our way into professional careers in our twenties, ones that would likely earn better money in later years in change for a few years of very hard work and study early on.

Eventually, and a good few years later, I’m in a very nice family home in the commuter belt. It takes commitment, time, and planning, there’s no short cut.

Chapter24

pattypan4 wrote: »

Two friends could do it, half and half for a 2 bed flat, at least it would get them on the ladder

two very well-earning friends.. which most young people are not.

pattypan4

I agree with Davy jones, there are no short cuts and it takes effort and sacrifice, something which some young people don`t want to do. What makes you think that we had high earnings when young and saving? we certainly did not but we had that savings aim, a home of our own. We used to walk rather than take a bus, had no car, the bus fare went into the savings pot. No quick fixes I am afraid and it won`t happen without grit, determination and single-mindedness, oh yes when we did get married, my hen night was an evening in the local put, it just cost the drinks, same for most of us.

billy2shots

Davy_Jones_II wrote: »

The traditional way is to cut back on all unnecessary spending, find any way you can to earn more and then to just save as had as you can.

I’m only just becoming middle-aged, not old, but as with generations before there were just very few things that we could buy or do when starting out. Drinks out were rare, meat was a treat, a special treat was four cans of lager and a rented video, we did not take holidays, and so on.

We also both worked our way into professional careers in our twenties, ones that would likely earn better money in later years in change for a few years of very hard work and study early on.

Eventually, and a good few years later, I’m in a very nice family home in the commuter belt. It takes commitment, time, and planning, there’s no short cut.

Have to agree with the above.
I’m not trying to stereotype but the vast number of people I speak to who ‘can’t afford’ to buy, can afford

-Regular evenings out
-Buying coffee in Costa
-Sky/Netflix/prime subscription
-latest phones on big contracts
-annual holidays
-smoke
-changing wardrobe frequently for brand named clothing.

It’s amazing the amount of people I talk to who consider some of the above as ‘essential spends’.
Personally I don’t and i managed to be mortgage free last year at the age of 36 on a property bought for £220k 9 years earlier. For context I am not a higher rate tax payer and my wife works 12 hours a week. No inheritance etc.

We’ve now moved and I have a £215k mortgage now, I plan on finishing it within 15 years by continuing to live within my means.

Chapter24

billy2shots wrote: »

Personally I don’t and i managed to be mortgage free last year at the age of 36 on a property bought for £220k 9 years earlier. For context I am not a higher rate tax payer and my wife works 12 hours a week. No inheritance etc.

We’ve now moved and I have a £215k mortgage now, I plan on finishing it within 15 years by continuing to live within my means.

£220k? so you would have needed to be earning about a third of that, between the two of you. That's pretty high earnings.

Even if you'd somehow managed to save £50k deposit it still would have been a struggle on average wages.

Chapter24

pattypan4 wrote: »

I agree with Davy jones, there are no short cuts and it takes effort and sacrifice, something which some young people don`t want to do. What makes you think that we had high earnings when young and saving? we certainly did not but we had that savings aim, a home of our own. We used to walk rather than take a bus, had no car, the bus fare went into the savings pot. No quick fixes I am afraid and it won`t happen without grit, determination and single-mindedness, oh yes when we did get married, my hen night was an evening in the local put, it just cost the drinks, same for most of us.

I think you need to put that into some context. Area / time, etc.
Houses, generally WERE more affordable decades ago, and it's much cheaper oop north. OK there's a reason for that but still..