Saving for a house deposit, how does anyone do this now...



Lowering expectations did it for me. Accept that your first house isn't going to be your forever home and is just a vehicle to get on the property ladder.

You can get a mortgage with a 5% deposit on a 2 up 2 down terraced house in Hetton for around £70k. It doesn't really matter if you get a high interest rate, it's still going to be proportionally chicken feed and much better than renting. Plus you'll likely be remortgaging/selling after a few years anyway.
 
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AndrewP said:
Aye, rents never go up like. It might be a smart move at the moment, or might not be

If in doubt, commit fraud. 🤣🤣

You can't get a loan for a house deposit.
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Technically you cant but theres nothing stopping you getting a loan for something else then use it. We were encouraged to do this by one of the main banks when we got the very first mortgage quote from them. Didn't need it like got money from family
 
Henry_Hill said:
eye watering deposit that mate well done. Assuming you live in London, £380k being 10% deposit means you’re living in a millionaire road
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Sydney, property prices are insanely high, even in relatively ordinary suburbs

Epping said:
Wouldn't expect your deposit to be half a house though..

Ideally you need a minimum of 10%
If you are renting somewhere and you have a spare room rent it out. Not ideal but worth pain to get money
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We wanted as small a mortgage as possible given the very high purchase price, which has worked out. Our mortgage is now way lower than the rent we were paying 8 years ago.

the point being we never anticipated being able to save such an amount but once we got going it got easier. Interest rates were higher so the savings grew and our wages increased during that time too (I’d just started an entry level job when we first started saving).
 
bennett83 said:
Technically you cant but theres nothing stopping you getting a loan for something else then use it. We were encouraged to do this by one of the main banks when we got the very first mortgage quote from them. Didn't need it like got money from family
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Are, fraud works canny unless you're caught.

It wouldn't be fraud if the lender was aware mind. 😂
 
elder said:
Sydney, property prices are insanely high, even in relatively ordinary suburbs


We wanted as small a mortgage as possible given the very high purchase price, which has worked out. Our mortgage is now way lower than the rent we were paying 8 years ago.

the point being we never anticipated being able to save such an amount but once we got going it got easier. Interest rates were higher so the savings grew and our wages increased during that time too (I’d just started an entry level job when we first started saving).
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Mate of mine has just put his nice but fairly bijou 4 bedder in Matraville up for sale. A fanny's hair off $2,000,000. That was one of the suburbs we had hoped we could have afforded close enough to the Eastern suburbs. But if that's all your getting for 2 mil we wouldn't have.
 
Bob Fleming said:
Mate of mine has just put his nice but fairly bijou 4 bedder in Matraville up for sale. A fanny's hair off $2,000,000. That was one of the suburbs we had hoped we could have afforded close enough to the Eastern suburbs. But if that's all your getting for 2 mil we wouldn't have.
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yeah, it’s bonkers now. Lots of people sitting on mega money.
 
Cee Jay said:
This…but then again the deposit on our first house was only £3000 :eek:
Just can’t imagine how difficult it must be nowadays
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We didn’t need a deposit. They gave us 100% of the value plus another 10% or so to get going with doing the house up. We could have got 125% of the value. This was turn of the millennium.

It was daft that they were offering that kind of thing but thankfully it worked out for us. I thank our lucky stars regularly that we happened to be looking at that time. Really feel for people trying to get on the ladder these days.
 
By;
1) being in a relationship
2) moving back in with your parents for a year
3) being well paid
4) not living or wanting to buy in an expensive city/town
5) buying something modest after saving 5%
 
I think if you really want to save up then you must start by looking at what you spend your money on.
2 Takeaways a week=£1000 a year,
1 Takeaway coffee a day £900 a year
Nights out, 1 less a month will save £800 a year inc. taxi home
Sim only instead of a contract will save £600 a year.
Sky? = £600 a year
Netflix = £120 a year
It soon mounts up, those will save £4000 a year.
 
As people are saying, there are two sides to your personal P&L… if you’re after medium to long term financial comfort (which is what a lot of people are ultimately after with home ownership) I’d focus more on your future salary than scraping a quick deposit together.

A few shifts in a bar might inch you towards a 5% deposit but putting the focus/ hours/ effort into your main career and jumping a level at work is the better long term play imo. You’ll get decades of benefit from that.

Delaying getting on the housing ladder for a bit longer shouldn’t be a big deal.


*Assuming you’re not already CEO of a FTSE 100 company
 
wisemensaysteve said:
I think if you really want to save up then you must start by looking at what you spend your money on.
2 Takeaways a week=£1000 a year,
1 Takeaway coffee a day £900 a year
Nights out, 1 less a month will save £800 a year inc. taxi home
Sim only instead of a contract will save £600 a year.
Sky? = £600 a year
Netflix = £120 a year
It soon mounts up, those will save £4000 a year.
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Respectfully, this thought process falls down in two ways.

1.) It implies that every 'luxury' is just that. I work a job whereby my hours vary massively. Sometimes I'm done at 2pm in the afternoon, others I'm working 11am-11pm. I don't work shifts so there's little warning for these things. I get a takeaway more often than not out of necessity than desire to have decent food at an inflated price.

2.) That £4k a year gets you maybe halfway towards a decent ish starter house so you'd be doing it for two years and that's with absoulutely no unexpected emergencies. It would also have you f***ing miserable. You'd be eating in everyday, with no form of entertainment at home, no way to watch the football. I also don't get a daily coffee.

My issue with being lectured by people about what us young-ins need to do is the clear and apparent fact that it's not what previous generations went through. There were no tuition fees. Jobs paid fairly, offered security. Houses weren't priced out for first-time buyers. To a man everyone I know has had to have help with their deposit. Maybe question why that's the case instead of telling young people they should eradicate anything deemed a luxury including a night in front of the telly with a pizza.
 

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