Mortgages- how did you save?

[housewifey]

Okay so here's my life...
OH and I are both 22, our daughter is 2. We're obviously a young couple and didn't have a large amount of money between us when we moved in together. OH works 55+ hours a week while I work his days off and a few evening totalling 16-20 hours a week. Meaning that we don't pay childcare. Back to my question, I can't seem to save a substantial amount of money per month to afford a deposit for a mortgage. We basically spend what we earn each month on food bill etc, whatevers left gets saved unless the re are birthdays or Christmas to pay out for. How do we save?

Also we have no debt, good credit history and have overdrafts but never use them. And hope to stay this way.

Sorry for rambling, any help appreciated xxx

 

[discoclare]

I don't really have any advice other than if you have any money left at the end of the month to move it to a different account so you are not so tempted to spend it. But it sounds like you are already doing that. Could you cut back a bit on Christmas and birthdays? ie tell people like your parents (if you buy for them) that you need to save for a deposit and would prefer that you only buy for your LO for a couple of years? (not sure if that is mean but my sister told us for a few years that she couldn't afford to buy us pressies and I was fine with that). Or do some handmade pressies? Do you own a car or two? If you have two could you cut down to one seeing as you don't work the same shifts as your OH?

You asked how did others save. We haven't bought yet but are planning to. The reason we were able to save is simply I think that I'm a lot older than you. I'm 37 and earn more than twice now that I was earning at your age. I think my OH is probably earning more than three times (maybe more) what he was earning at 22. So it's not helpful to you, but I think that's how a lot of people save for their deposit, they buy their first home at an older age now than 20 years ago because of the increased cost of housing (and lack of 100% mortgages).

 

[smallpeanut]

We moved from our rented to our parents. However when we did this I didn't have annabelle. However we could save 1500 a month and we stayed for 6 months, then I sold my horses and OH sold his classic mini to make the rest. Xxx

 

[misspriss]

We didn't. Here, you can get downpayment assistance. There are government loans that can help you out. You can get an FHA loan which only requires 3.5% down, which we could come up with rather quickly, especially in the price range house we were looking for. We did save our income tax refund for that, but looks like we won't be needing it.

The other is USDA Rural Development. In order to encourage growth and development in rural areas, they will insure $0 down loans in those areas. That is what we are applying for right now.

We have debt, unsecured, secured, and student loans - but great credit, never a late payment on anything, etc.

I don't know how things are in the UK though, those are US programs! Do you know if there are any special programs for younger or first-time homebuyers in your area? I have no idea if they have those kinds of programs there, but it is worth looking into!

 

[younglove]

My best advice is to make a budget to see exactly where your money is going. This is a really good worksheet for building a budget https://www.gailvazoxlade.com/resources/interactive_budget_worksheet.html

That website has a lot of good tips on saving and budgeting.

You can also try couponing, price matching, trying to buy things when they are on sale to reduce your shopping costs. You can also call your utilities (tv, cell phone, etc.) to try to renegotiate and reduce your monthly bill.

Good luck

 

[housewifey]

Yeah we are trying to cut back, we only have one car already, and planning a UK holiday this year ( we went to Florida last year ) I never actually thought about not doing presents, might suggest that! And I'm definitely using that budget sheet, thanks.

My dad seems to think I'm too young for a mortgage but I hate renting so much, I'm basically paying my landlords mortgage off! I'm just worried about waiting too long and then house prices continuing to go up and then I want to have more children which will make it harder to save.

Thanks for the American info btw, although I live in scotland, I'm actually an American citizen and OH and I have spoke about the possibility of moving over there ( although we have to be married because he is british) but that might be an option for us in the future.

 

[Toms Mummy]

If anything I reckon there'll be a housing crash in the next few years.

It took us 10 years to save for a deposit for a house. That was before children and with well paid jobs!.... Just take your time, the average 1st buyer now is in their mid 30's!

 

[bookreader]

We are saving just now to emigrate and have had a huge change to our lifestyle but i love it to be honest. but i do love a bargain.
My OH works shifts so it is often just me for dinner, so i buy reduced food, freeze it etc.
Dont really buy clothes, if i do generally from the charity shop or sales.

It has become a way of life. Oh and no holidays at the moment. But we had a fab one to Japan just before i got pregnant so cant complain.

In Scotland i hate the whole offers over system as well.