Table of Contents
- Are you able to inform us about your property and the realm you reside in?
- How a lot did the property price?
- How did you save for the deposit?
- Have been there any shock prices in the course of the shopping for course of?
- Did you encounter any issues with the acquisition?
- How lengthy is your mortgage time period and what are your month-to-month repayments?
- What recommendation would you give to different first time patrons?
WHEN first-time purchaser Steven Luemba determined to get severe about saving for a home he knew he’d should curb his £100 a month purchasing behavior.
The 29-year-old inside designer lower down on his spending sprees and restricted the quantity he needed to drink on nights out to assist save up the £18,000 he wanted to purchase his first house.
Inside designer Steven Luemba, 29, lower down on shopping for garments and sneakers to assist him save up for his £315,000 one-bedroom flat
As a substitute of spending £50 to £100 a month on garments he did one purchasing journey a yr, however nonetheless restricted himself so he may save an additional £1,000 a yr.
He picked up the keys to his one-bed £315,000 flat in Hackbridge, south London, in February this yr simply earlier than coronavirus lockdown hit the UK.
Steven additionally determined to chop again on the variety of drinks he had when he went out with buddies, however he didn’t have to surrender on his social life.
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Steven picked up the keys to his newly constructed flat in Hackbridge, south London, in February this yr
The one-bedroom flat comes with a contemporary toilet and big personal terrace
By additionally transferring in along with his mother and father for 3 years, the place he paid simply £300 a month in hire, he managed to place away round £1,000 a month.
On the time, he was a basic-rate taxpayer, which means he earned lower than £50,000 a yr.
Steven put down the deposit on the property in February 2019 and was attributable to transfer in the summertime of that yr, however he had his plans thrown up within the air attributable to delays with the construct.
Now fortunately settled in his new house, Steven shared his experiences of getting on the property ladder for The Solar’s My First Home collection.
Are you able to inform us about your property and the realm you reside in?
I dwell in a one-bed condominium in Hackbridge, south London, in a improvement referred to as New Mill Quarter by housebuilder Barratt.
I’m initially from south-east London, however was open to transferring wherever that wasn’t too far out and is straightforward to get into city.
Hackbridge is in south west London, and is a very handy location for me, as I work in central London and wish to have the ability to get in simply.
It solely takes half-hour to get into London Victoria, and my condominium is correct throughout the highway from the station so it ticked all of the bins.
The flat is on the highest flooring of a brand new construct block
The property is positioned proper throughout a prepare station, making the commute into London straightforward
The personal out of doors terrace has greater than sufficient house for gatherings
My flat is on the highest flooring of a brand new construct block. I used to be initially in search of a two-bedroom condominium, however this comes with its personal personal terrace so I used to be offered as quickly as I noticed that.
I put new shutters and blinds in once I moved in, and acquired myself a number of luxurious objects like a settee from Swoon and a marble desk from West Elm, in addition to good eating room chairs – however then I’ve bought numerous different good bits from Ikea and John Lewis too.
I even have an enormous 10 seater desk on the terrace with a parasol, which has been nice for seeing buddies since lockdown has eased.
How a lot did the property price?
The condominium was £315,000 in whole, with an £18,000 deposit, figuring out as roughly 5%.
I additionally needed to put down an extra £500 to safe it after I noticed the plans as there have been different individuals focused on buying.
I managed to avoid wasting £25,000 in whole over round three years. As I saved my cash in a Assist to Purchase Isa, I bought an extra £2,000 bonus when it got here to the time of buy – so I had £27,000 in whole.
I solely wanted to place down a 5% deposit, so I made a decision to avoid wasting the remaining for charges and different prices.
What assistance is on the market for first-time patrons?
GETTING on the property ladder can really feel like a frightening activity however there are schemes on the market to assist first-time patrons have their very own house.
Assist to Purchase Isa – It is a tax-free financial savings account the place for each £200 you save, the Authorities will add an additional £50. However there is a most restrict of £3,000 which is paid to your solicitor once you transfer. These accounts have now closed to new candidates however those that already maintain one have till November 2029 to make use of it.
Assist to Purchase fairness mortgage – The Authorities will lend you as much as 20% of the house’s worth – or 40% in London – after you’ve got put down a 5% deposit. The mortgage is on high of a traditional mortgage however it may solely be used to purchase a brand new construct property.
Lifetime Isa – That is one other Authorities scheme that provides anybody aged 18 to 39 the possibility to avoid wasting tax-free and get a bonus of as much as £32,000 in direction of their first house. It can save you as much as £4,000 a yr and the Authorities will add 25% on high.
Shared possession – Co-owning with a housing affiliation means you should buy part of the property and pay hire on the remaining quantity. You should purchase something from 25% to 75% of the property however you are restricted to particular ones.
“First dibs” in London – London Mayor Sadiq Khan is engaged on a scheme that may prohibit gross sales of all new-build properties within the capital as much as £350,000 to UK patrons for 3 months earlier than any abroad advertising and marketing can happen.
Starter Residence Initiative – A Authorities scheme that may see 200,000 new-build properties in England offered to first-time patrons with a 20% low cost by 2020. To obtain updates on the progress of those properties you possibly can register your curiosity on the Starter Homes web site.
How did you save for the deposit?
I nonetheless managed to maintain my social life, however I mainly didn’t purchase any garments for 3 years.
I’d solely deal with myself to one thing new every year, so it helped me enhance my financial savings.
Earlier than I began saving, I might in all probability spend between £50 and £100 a month on a number of items.
As soon as I began saving, I might solely spend round £200/£500 as a one off.
This implies I lower my garments purchasing finances by as much as £1,000 a yr.
I nonetheless managed to maintain my social life, however I’d solely have a few drinks if I went out and tried to dwell off £100-£200 enjoyable spending cash a month.
I used to be additionally fortunate sufficient to have the ability to transfer again in with my mother and father in Greenwich, London, for 3 years and solely paid £300 a month in hire.
Steven stated he wearing black so it wasn’t as apparent that he wasn’t shopping for many new garments
The fashionable kitchen is large enough for Steven, who lives by himself
Steven is presently ready for a brand new inbuilt wardrobe, so he is utilizing a rail for his garments within the bed room
He additionally has a separate storage cabinet for coats and sneakers
General, this meant I used to be capable of put away round £1,000 a month on common, though this is able to fluctuate as some months you’d have extra outgoings than others.
I didn’t have any monetary assist from my household aside from dwelling at house, I wished to do that completely by myself – and I feel as a result of I used to be so pushed I didn’t discover it onerous to sacrifice issues.
Ultimately it’s so value it as a result of now I’m simply paying a mortgage for my very own profit somewhat than into another person’s pocket each month in hire.
As a result of I used to be strict with my spending, I used to be capable of do my saving and nonetheless do three journeys a yr overseas someplace.
No matter is necessary, you may make it work. It’s simply that generally you’re going to should sacrifice different issues. You possibly can’t at all times have all of it.
Have been there any shock prices in the course of the shopping for course of?
There weren’t actually any shock prices, the truth is I used to be fairly fortunate because the £2,000 bonus from my Assist to Purchase Isa helped to pay for nearly the entire solicitors charges, which had been round £3,000 in whole.
I had a mortgage dealer too who price round £400, which I didn’t suppose was too costly – particularly as I needed to apply for an extension on my mortgage when the construct was delayed.
The inside designer handled himself to a marble desk from West Elm as soon as he moved in
In whole, Steven reckons he is spent round £10,000 doing up the flat
Initially my mortgage expired on the finish of 2019, however once I hadn’t moved in by then my brokers organised an extension for me at no added price.
Fortunately the rate of interest had additionally gone down by then as nicely, so I ended up with a fair higher price.
I feel the one price I hadn’t actually considered had been the transferring prices of hiring a van and storing furnishings, which was about £500 in whole – however fortunately I had fairly a bit additional saved so this wasn’t an issue.
Did you encounter any issues with the acquisition?
Probably not, however there was a delay in the course of the shopping for course of, which is kind of frequent with new builds.
I ended up ready a complete additional yr earlier than I may transfer in – which was positive for me as a result of I may keep at my mother and father’ within the meantime.
However I do know individuals who have needed to keep in Airbnb’s whereas they wait, which might get costly – so it’s positively one thing to consider for individuals who need to purchase a brand new construct.
Steven says he sees cash spent on furnishings as a future funding
I’m simply comfortable I managed to get in earlier than we went into lockdown – it’s been very nice as I bought to know all my neighbours throughout that point.
We’d carry chairs out to our entrance doorways and chat to one another from throughout the hall.
How lengthy is your mortgage time period and what are your month-to-month repayments?
I made a decision to take out an extended mortgage of 40 years with Halifax, as I believed I’m nonetheless younger and this makes my month-to-month repayments far more manageable.
In the mean time I’m paying £500 a month, which is nice for now as I’ve spent rather a lot on furnishings and with payments on high of about £500 it means I’m able to carry on high of my funds and never fear an excessive amount of.
My price is mounted for 2 years, so I’m hoping I is perhaps incomes a bit more cash by then and can be a bit extra settled – so I’m planning to lower the time period and improve my month-to-month funds to begin paying off extra of the mortgage then.
What recommendation would you give to different first time patrons?
I might say shopping for a home might be going to be probably the most tense factor you ever do, nevertheless it’s so so value it.
There have been factors the place I’d go to my buddies’ flats in London and suppose ‘oh possibly I ought to surrender and simply hire someplace and get out of my mother and father’ home’, however I’m so comfortable I didn’t give in.
There may be a great deal of paperwork to do, and saving could be actually tough – however once you’re in your new house you’ll be so comfortable it’s all value it.
A married couple managed to buy their £282,000 two-bedroom terraced house outside Brighton by reducing again on holidays and consuming out.
In the meantime, a savvy entrepreneur got on the property ladder four years earlier than planned by beginning his personal enterprise whereas working full-time.
First-time purchaser Charlotte Gorick was additionally able to save up £11,000 to put towards her £120,000 two-bed home after a £100 Microsoft Excel course helped her bag a full-time job.