Can't see myself buying my first house any time soon

Getting_greyer

Owleyes00 said:

Getting_greyer said:

[Deleted User] said:

lookstraightahead said:

[Deleted User] said:

Yes, it's very difficult at the moment and prices continue to rise faster than most people can save up.

Obviously finding a better paid isn't easy or you would have done it, and moving far away often makes little difference as wages are comparatively lower there too. That said, if you are willing to move to Scotland or can get a visa for the EU, there are opportunities.

Keep an eye on your age too. Once you hit about 42-43 it will be difficult to get a 25 year mortgage, as the bank will assume you will retire at 68 (current retirement age). Similarly 32-33 for a 35 year mortgage.

Most people in your position who manage to buy something have help from their families. Free money from their parents, inheritance, that kind of thing. I guess you have thought about that too.

Sadly there are very few options if you are unwilling to emigrate.

Loads of banks offer mortgage past 70 - lots of people don't do the normal retiring thing nowadays as the benefit the younger generation have is that they will on average live longer.

most people don't have help from their families surely? 

Buying too young can be a burden. Because as you say, some want to travel (although you call it emigrate).

You can earn quite a lot if you are willing to move and happy to house share.

The majority of first time buyers have help from their families, either bank of mum and dad or inheritance. That's the reality in 2022.

I didn't know that tbh. I'd always assumed parents tried to pass on wealth to 40/50 yr old s just prior to inheritance tax etc.  I wonder what the average bank of mum and dad help is.

Almost everyone I know my age (late 20s/early 30s) who has bought somewhere has had some kind of help be it a gift from parents or inheritance from grandparents. We had both - my partner inherited £32.5k and my parents gifted me £30k. We also put in £24k of our own but are under no illusions that we wouldn’t have a house anything like what we have ended up with without significant financial help and it is extremely unfair that we were able to this and others are not.

https://metro.co.uk/2022/03/09/number-of-first-time-buyers-doubles-but-half-of-them-had-family-help-16234447/ 

Very interesting.

Frustrating that I can't find the original research paper.  Though on the face of it does suggest a majority receive parental help.  Though just trying to add this bit up 

"Most people (62%) said they relied on their own savings, but more than half (56%) said they wouldn’t have been able to buy their first home without family support or a financial contribution".  

Research pool of 2000, but still a sizable chunk either way.

grumiofoundation

Getting_greyer said:

Owleyes00 said:

Getting_greyer said:

[Deleted User] said:

lookstraightahead said:

[Deleted User] said:

Yes, it's very difficult at the moment and prices continue to rise faster than most people can save up.

Obviously finding a better paid isn't easy or you would have done it, and moving far away often makes little difference as wages are comparatively lower there too. That said, if you are willing to move to Scotland or can get a visa for the EU, there are opportunities.

Keep an eye on your age too. Once you hit about 42-43 it will be difficult to get a 25 year mortgage, as the bank will assume you will retire at 68 (current retirement age). Similarly 32-33 for a 35 year mortgage.

Most people in your position who manage to buy something have help from their families. Free money from their parents, inheritance, that kind of thing. I guess you have thought about that too.

Sadly there are very few options if you are unwilling to emigrate.

Loads of banks offer mortgage past 70 - lots of people don't do the normal retiring thing nowadays as the benefit the younger generation have is that they will on average live longer.

most people don't have help from their families surely? 

Buying too young can be a burden. Because as you say, some want to travel (although you call it emigrate).

You can earn quite a lot if you are willing to move and happy to house share.

The majority of first time buyers have help from their families, either bank of mum and dad or inheritance. That's the reality in 2022.

I didn't know that tbh. I'd always assumed parents tried to pass on wealth to 40/50 yr old s just prior to inheritance tax etc.  I wonder what the average bank of mum and dad help is.

Almost everyone I know my age (late 20s/early 30s) who has bought somewhere has had some kind of help be it a gift from parents or inheritance from grandparents. We had both - my partner inherited £32.5k and my parents gifted me £30k. We also put in £24k of our own but are under no illusions that we wouldn’t have a house anything like what we have ended up with without significant financial help and it is extremely unfair that we were able to this and others are not.

https://metro.co.uk/2022/03/09/number-of-first-time-buyers-doubles-but-half-of-them-had-family-help-16234447/ 

Very interesting.

Frustrating that I can't find the original research paper.  Though on the face of it does suggest a majority receive parental help.  Though just trying to add this bit up 

"Most people (62%) said they relied on their own savings, but more than half (56%) said they wouldn’t have been able to buy their first home without family support or a financial contribution".  

Research pool of 2000, but still a sizable chunk either way.

So 118% of first time buyers covered there! 

[Deleted User]

Getting_greyer said:

[Deleted User] said:

lookstraightahead said:

[Deleted User] said:

Yes, it's very difficult at the moment and prices continue to rise faster than most people can save up.

Obviously finding a better paid isn't easy or you would have done it, and moving far away often makes little difference as wages are comparatively lower there too. That said, if you are willing to move to Scotland or can get a visa for the EU, there are opportunities.

Keep an eye on your age too. Once you hit about 42-43 it will be difficult to get a 25 year mortgage, as the bank will assume you will retire at 68 (current retirement age). Similarly 32-33 for a 35 year mortgage.

Most people in your position who manage to buy something have help from their families. Free money from their parents, inheritance, that kind of thing. I guess you have thought about that too.

Sadly there are very few options if you are unwilling to emigrate.

Loads of banks offer mortgage past 70 - lots of people don't do the normal retiring thing nowadays as the benefit the younger generation have is that they will on average live longer.

most people don't have help from their families surely? 

Buying too young can be a burden. Because as you say, some want to travel (although you call it emigrate).

You can earn quite a lot if you are willing to move and happy to house share.

The majority of first time buyers have help from their families, either bank of mum and dad or inheritance. That's the reality in 2022.

I didn't know that tbh. I'd always assumed parents tried to pass on wealth to 40/50 yr old s just prior to inheritance tax etc.  I wonder what the average bank of mum and dad help is.

I recall the average being £32,000 from mum & dad last year. A couple of newspapers reported it.

Everyone FTB I know, all my friends and family, bought their first place with either a big deposit contribution from their parents or a big inheritance.

The problem is that now they don't have anything like that much spare cash to give to their children, and if they have any wealth left after care costs and the like they won't be passing it on for another 30-40 years. On top of that, the gap between wages and house prices keeps increasing. Low interest rates offset it but those may be coming to an end, along with very high inflation which hits mortgage affordability checks.

TXC

Your ceiling with the lender vs. your salary sounds really low!  I'm on about 15% more salary wise but have been able to borrow about 35% more than your quote (and thats with a 10% deposit - feels like you might even have a 15% saved up looking at your OP??) - as others have said absolutely engage a broker and shop around, you should be able to get to 190 at least I would have thought

TXC

Re: bank mum and dad, absolutely agree. I would never have been able to look at buying without them. I didn't get a lump sum but I did live here rent free for 3 years enabling me to save a lot more than i normally would.

lookstraightahead

Is there an expectation that parents should help? 

I was never in a position to get help from my parents financially or later with children.

i could only get a mortgage by having two incomes and I also had a big uni loan. Wish I hadnt bought at all as I was only mid twenties, but I kept hearing "buy, buy, buy". Worst financial decision I ever made.

Getting_greyer

Most people (62%) said they relied on their own savings, but more than half (56%) said they wouldn’t have been able to buy their first home without family support or a financial contribution".  

So I'm guessing this means 62% no cash from parents.  But 56% had help in some form, whether cash or low/free rent at home. Which still suggests it's 38% who received direct cash deposit gift.  That's still a lot.

Also no amount listed so could be ranging from £50 to £500k

Getting_greyer

lookstraightahead said:

Is there an expectation that parents should help? 

I was never in a position to get help from my parents financially or later with children.

i could only get a mortgage by having two incomes and I also had a big uni loan. Wish I hadnt bought at all as I was only mid twenties, but I kept hearing "buy, buy, buy". Worst financial decision I ever made.

Think depends on your parents.  If they haven't got two pennies to run together than probably not.

GixerKate

In the original post Help to Buy was dismissed as a possibility but perhaps this should be reconsidered along with shared ownership?  Both of this schemes are aimed at people who find it difficult to get on the property ladder so I wouldn't suggest dismissing it completely based on what 'people' say.  

There are many people (myself included) who have gone down the Help to Buy route as it was right for them.  It meant that my family and I could afford to get the house we wanted at the price we could afford.

SaintJudy

[Deleted User] said:

Yes, it's very difficult at the moment and prices continue to rise faster than most people can save up.

Obviously finding a better paid isn't easy or you would have done it, and moving far away often makes little difference as wages are comparatively lower there too. That said, if you are willing to move to Scotland or can get a visa for the EU, there are opportunities.

Keep an eye on your age too. Once you hit about 42-43 it will be difficult to get a 25 year mortgage, as the bank will assume you will retire at 68 (current retirement age). Similarly 32-33 for a 35 year mortgage.

Most people in your position who manage to buy something have help from their families. Free money from their parents, inheritance, that kind of thing. I guess you have thought about that too.

Sadly there are very few options if you are unwilling to emigrate.

I bought last year at the age of 47 and got a 27 year mortgage. So what you said here isn't entirely true. The bank did want to see that I was paying into a pension but that was it.