Loads of Londoners end up ditching the city when it comes to buying a home.
London prices just aren’t feasible for the majority of us – especially when we’re dedicating most of our money to pricey rents.
For Tristan Cobourne, a 26-year-old engineer, when it came time to invest in his first property he chose to move from Hackney to Strood, in Kent, back in March 2017.
After years spent saving for the deposit, he was able to get a mortgage on a three-bedroom Victorian terraced home.
Hi, Tristan! Let’s get right into it. How much was your deposit?
I paid £228,000 and put down a 5% deposit, so just over £11,500.
I started saving when I was just 17, with a monthly target of putting away £500 a month.
Once I started university I started to cut back even more by giving up clubbing and martial arts classes – saving an extra £125 per month. I then budgeted just £10 on food, eating only simple pasta dishes and took on extra bookings as a bouncer four nights a week.
Once I saved £6,000, my mum and a friend lent me £7,000 to help me with the deposit I needed.
I was putting away £500 a month minimum and I remember being annoyed if I put away any less than that. In total I saved £6,000 on my own. I had an everyday savings account and a cash ISA so anything left over in my savings account would get moved into the ISA.
I’d spend £40 to £50 a month on food for myself and didn’t get a car until after university. I had several jobs including working in Sports Direct part-time and as a doorman four nights a week. To help me reach my deposit total, my mum gifted me £5,000 then a friend lent me £2,000 to cover the solicitor fees.
From a young age, if I wanted to get something, I had to work for it so I understood the necessity to save for things, as there wasn’t a concept of disposable income.
This essentially turned into a habit, where it became important to avoid debt, and instead build rainy day funds and budget for various interests I would have at the time.
How much do you now need to pay each month for the mortgage? And what about bills?
My mortgage is £749 a month, bills are roughly £400 a month.
How did you find the process of getting a mortgage?
Once I settled with a mortgage adviser the process was relatively smooth, but I found it confusing that the amount I could borrow changed depending on the lender. One person would let you borrow a certain amount, then another lender would give you a higher or lower amount. So it was hard to know who to go with.
Advice for first-time buyers:
Miles Robinson, Head of Mortgages at online mortgage broker, Trussle, recommends the following tips for first-time buyers to consider when getting on the property ladder:
Manage your expectations from the start
It’s easy to get carried away when looking for your first home but try to have realistic expectations of what and where you can afford so that you won’t be disappointed further down the line.
Set yourself a budget and separate your ‘must-haves’ and ‘nice-to-haves’ before you start your property search, as this will cut out time going to unsuitable properties and keep you focused on a more achievable homeownership goal.
Shop around for the best deal
Given that there are so many deals on the market, and a maze of jargon to sort through, finding and securing the right mortgage can seem daunting.
It’s important to spend the time to ensure you get the best possible deal for your circumstances. Don’t be drawn in by those that have the lowest headline interest rates as there may well be high product fees or other hidden charges.
Using a free online mortgage broker like Trussle will help you find the right deal for you based on the true cost, giving you an honest overview of how much you’ll be paying, factoring in fees and cashback to the repayment cost.
Be smart with your finances
Buying a home is a huge financial commitment and mortgage lenders will want to see that you’re a trustworthy borrower. Closing any unused bank accounts and paying off your credit card each month will help to get your credit score in check and boost your chances of being accepted for a mortgage.
If you haven’t already, consider looking into the Government-backed schemes available to young people, such as the Help to Buy Equity Loan or Lifetime ISA to really maximise the amount of money you’re putting away.
To help with this, we’ve designed a tool to help savers understand all of the home ownership schemes available to them.
Be inquisitive when viewing properties
When viewing a property, make sure you take lots of photos and ask plenty of questions. It’s easy to overlook what may seem like small things when buying your first home, like cracks in the walls or signs of damp, but you don’t want to get stuck with costly home repairs later down the line.
However, try to remember that it doesn’t have to take much to transform a house into a home. There’s nothing stopping you from turning the property around on a relatively low budget if you make a realistic and affordable list of DIY priorities. You could even get the help of friends and family before hiring a tradesman to keep costs down.
Buying with somebody else
Whether that be a partner, friend, or family member, investing with another person makes it a lot easier to get onto the property ladder. You would then only need to save half the amount for a deposit, making your savings goals much more manageable
. However, it is important that you are having open and honest conversations with the person you plan to buy with, given that this is likely to be the biggest financial commitment either of you have ever made.
How did you find this place?
I wanted to purchase a property in London but I knew that it was far more expensive than the surrounding areas. I used Zoopla’s mapping tool and drew a circle around the M25.
I then compared house prices for the size of the property as well as weighed up using the Help To Buy scheme. The final decision was based on transport links to London, the size of the property, price and design.
How have you made the house feel like home?
I’ve probably spent around £2,000 to £2,500 on furniture and decorating. I’d say it took two months to get it fully sorted.
It’s fully furnished now minus the touches of ornaments and pictures. For the first year it remained just as I bought it, but now all three rooms are complete with new laminate flooring and new paint. I also have a dedicated office which would be where the dining room would usually be.
What do you like about living in Kent?
It’s quite different to London and a lot quieter. I like the ability to travel to London and experience the hustle and bustle, but also return to Kent for some downtime.
I have never been attached to living in a particular place. London is extremely accessible from various points, so moving out was more of a smarter financial decision for me.
Are there any issues with the property?
There was an issue with the roof above the bathroom, where heavy rain would pass through and cause damp and affect the bathroom ceiling. This was fixed in the summer of 2019.
There are other areas of spot damp but this is to be expected in a Victorian property of this age.
What are your housing plans for the future?
I’m very interested in creating a housing portfolio. Although, I haven’t decided whether this will be UK based or not. I will remain here for the foreseeable future but will keep an eye out for any opportunities in the surrounding areas too.
Fair enough. Shall we have a look around?
How to get involved in What I Own
What I Own is a Metro.co.uk series that takes you inside people's properties, to take an honest look at what it's like to buy a home in the UK.
If you own your home and would be up for sharing your story, please email whatirent@metro.co.uk.
You'll need to have pictures taken of your kitchen, living room, bathroom, and bedroom, plus a few photos of you in your room. Make sure you get permission for your housemates! You'll also need to be okay with sharing how much you've paid to live there and how you afforded the deposit, as that's pretty important.
If you're renting, you can take part too! What I Own runs alongside What I Rent, which is the same series but all about renting. Again, if you'd like to get involved just email whatirent@metro.co.uk.
MORE: What I Own: Lola, who saved £57,000 alone for a deposit on a two-bedroom flat in Catford
MORE: What I Own: Karen, a £371,000 four-bedroom house in Kent with its own medieval gaming room
source https://metro.co.uk/2020/02/01/tristan-26-paid-11500-deposit-three-bedroom-home-strood-kent-12164218/
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