First Time Buyers- Can’t get on the Ladder

jackieblack

07hthom said:

lookstraightahead said:

Why don't you commute into London? Did an hour and a half each way for years. Sometimes you have to compromise.

We can only use our Help to Buy ISA bonus on a property up to £250,000 outside London and that’s not enough to even get a flat.

Sorry but that’s rubbish. I live an hour by train into Liverpool St and £250,000 could buy a 2/3 bed semi/terraced house within a few minutes walk from the railway station. I’m sure there must be other similar areas.

grumiofoundation

07hthom said:

nicknameless said:

first post plus hundreds of offers plus two to three year search equals (trolling)?

We’re definitely not a troll. This is just the reality for young first time buyers in London. This is our first post because we joined this forum after yet another rejection we had on Wednesdays. It was a 2 bed £350,000 house that went for £380,000 (and this is in the cheapest area we could find). There are so many people in the same situation as us and it’s incredibly sad actually. 

Obviously sounds very difficult for you (I don't know London or the London property market so can't help with that in any way).

If you want more practical, financial suggestions/help (you may not, or may not want to provide the details) then you will need to provide more information and people may be able to make helpful suggestions. 

Are you limited by mortgage or deposit?

Is there potential for pay increases in the (near)future?

Assuming you have an agreement in principle, where did you get this from? Have you spoken to a mortgage broker?

You say large deposit, how large and what are your salaries? I say this because it may be that you could actually borrow more than if you widen your pool of lenders (mortgage broker can help here) some lenders may be more willing to look at your personal circumstances rather than a formulaic salary multiple. For example if you have especially low spending and can evidence this you may be able to borrow a little more.

Do you have a lifetime ISA*? (If not may be useful to you. Has to be open for 12 months before can use and if you try and withdraw before 12-months need to pay a penalty. But might be worth opening with minimum deposit now to get 12-month clock rolling if you don't already have). 

Edit: have you looked at help to buy equity loan?


Key question is how much is your affordability increasing for every year you don't buy. I. e. How much are you able to save, how much is pay going up (meaning can borrow more). And how does this keep up with property prices in your area? 

We can only use our Help to Buy ISA bonus on a property up to £250,000 outside London and that’s not enough to even get a flat.
But In London we can use our bonus on a property up to £450,000. 

*Edit just seen more recent post. Depending on timescale of hoping to buy and how much is in HTB ISAs this may make LISA a no go. Although LISA doesn't have 250k limit outside London. 

07hthom

Areas with houses as cheap as that are too far away. We cannot be spending 2 hours travelling to work. We’re school teachers, we can’t be spending 4 hours of our day travelling. 

lookstraightahead

07hthom said:

Areas with houses as cheap as that are too far away. We cannot be spending 2 hours travelling to work. We’re school teachers, we can’t be spending 4 hours of our day travelling. 

This is the issue (I'm not having a go honestly). You have to compromise somewhere. 

If you are teachers can't you teach outside of London? It seems you've a double blow as you don't get the benefits of a high London salary, but want to stay central.

RelievedSheff

07hthom said:

Areas with houses as cheap as that are too far away. We cannot be spending 2 hours travelling to work. We’re school teachers, we can’t be spending 4 hours of our day travelling. 

What area do you need to work in?

If you give some information then people might be able to offer you some sensible locations and property options.

It does sound like you are being somewhat defeatist though and are dismissing options. It isn't uncommon for people to travel an hour or more each way to work. We commute 25 miles each way to work and had to move out of the city where we work to find a property that we could afford in an area that we would want to live in.

07hthom

lookstraightahead said:

07hthom said:

Areas with houses as cheap as that are too far away. We cannot be spending 2 hours travelling to work. We’re school teachers, we can’t be spending 4 hours of our day travelling. 

This is the issue (I'm not having a go honestly). You have to compromise somewhere. 

If you are teachers can't you teach outside of London? It seems you've a double blow as you don't get the benefits of a high London salary, but want to stay central.

So this means we can either put up with hours and hours of travel, or accept a huge salary cut where in some places drop our salary by nearly half? 

grumiofoundation

07hthom said:

lookstraightahead said:

07hthom said:

Areas with houses as cheap as that are too far away. We cannot be spending 2 hours travelling to work. We’re school teachers, we can’t be spending 4 hours of our day travelling. 

This is the issue (I'm not having a go honestly). You have to compromise somewhere. 

If you are teachers can't you teach outside of London? It seems you've a double blow as you don't get the benefits of a high London salary, but want to stay central.

So this means we can either put up with hours and hours of travel, or accept a huge salary cut where in some places drop our salary by nearly half? 

Half? At no point on the teachers pay scale do the higher London pay scales offer a 50% pay bump, let alone 100% - depending on exactly what you mean by dropping by a half. 

This is assuming you are based on the /normal/pay scales. Maybe you work at a school that pays more? 

seven-day-weekend

Move up to the Midlands or north, two teachers' salaries will be fine there and you will be able to get a decent house.  Here's one near me, in a very popular area and  half an hour by train to Birmingham or Shrewsbury.

https://www.rightmove.co.uk/properties/111892937#/?channel=RES_BUY

Owleyes00

No real advice to offer but in the OPs defence it really isn’t practical or conducive to wellbeing for teachers to have a lengthy commute as most arrive at work by 7:30am!

Posters are right though OP in that, as teachers you are able to work anywhere. Whether it is reasonable to choose to uproot your entire life (depending on your links to London) to get on the property ladder is your decision. 

As PP say, some more info about your financial position and areas might help you get some more helpful responses 😊

Greymug

07hthom said:

Is there anything more that we can do to ensure our offers are accepted? Does anyone have any advice or tips they can offer us?

Yes, buy a new build that you can afford.

No bidding wars, no risks of having your offer rejected.