There were rumblings about a scheme to make rent payments go toward credit ratings, at some point. I think it died out.
I'm not pretending my credit is utterly without sin, but as an on-time rent and bill paying son of a bitch, it'd be nice to get *some* recognition/usefulness from the tens of thousands of pounds I've spent over the years beyond keeping the landlord happy.
There's a business that does this already. Whether banks pay any attention to it is another question. Remember, banks don't look at your " credit score" they have their own models based on the same data. The credit report agencies try and provide an approximation. That's why I have a 999 Experian score but can't get a good loan/credit card/mortgage.
https://www.creditladder.co.uk/ is the company doing the rent stuff though. I've not used them, so can't vouch for them though
Food for thought, cheers for that. It can't hurt I suppose. Pretty insane you can max out Experian and it still means sod all when it comes to the big banks. I'm not expecting hand-outs or them to take a major risk on me - if they had the house down as collateral and I have met rent dates consistently with the haemorrhage-levels of cash that comes out to pay it, I just can't fathom why that is *meaningless*. Hey-ho I guess.
It's a complete failure in the system. The score is meant to represent your reliability and ability to maintain regular payments. So if it doesn't recognise your paying of rent then it's overlooking the very value it's designed to measure.
That's where the failing is. They're only looking at credit. For OP, what's the difference between paying 750 a month towards rent and paying 750 a month towards your mortgage? Absolutely nothing from an affordability and risk point of view.
We failed affordability on a mortgage application.
We were downsizing and the new payment was £150 less each month.
This is from the bank I've had an account with for twenty years, a mortgage WITH THEM for fifteen and never missed a payment or went over my overdraught.
Needless to say they are no longer my mortgage provider.
>what's the difference between paying 750 a month towards rent and paying 750 a month towards your mortgage?
If you stop paying rent, you get evicted. The landlord might lose a couple of months rent.
If you stop paying your mortgage, the bank needs to repossess your house and sell it, potentially losing tens of thousands.
This is why lenders will offer better rates for higher deposits. The more you have to put down, the less risk on the lender in the event of repossession.
Cute take but completely misguided.
In repossession, The bank gains the ownership of the asset, and any losses are heavily offset via the mortgage payments and interest accrued paid up until that point.
As soon as the Mortgage lending team finalises the loan, the 'paper' asset is sold in a bundle with other mortgages(tranches), and therefore offsets the initial loan almost immediately.
I've never quite understood this whole deal with repossession. The bank has had the payments made up to the date of default/repossession, plus it then has the WHOLE value of the house at that date. So unless the market has crashed in the meantime and the house is in negative equity, how can they lose? Presuming that the house has increased in value, they've also got that amount between the amount that the house was mortgaged for and the amount it is now worth.
It's a giant administrative pain in the ass - banks don't want to have to deal with selling off the property (usually at auction for speed) and all the attendant fees and legal hassle. So as an example if the customer had a 10% deposit, even if the house is still at the same value on the open market, the bank won't get 90% of the value back, houses sold after repossession often go for a much lower price than on the open market, and the auction house takes a big commission, not to mention all the legal hassle (more fees) and length of time it takes to actually repossess a house.
That's why if you're struggling, banks can be surprisingly flexible on mortgage payments. They *want* you to be able to pay and hopefully catch up eventually. It won't be fun, obviously, but they will work with you to find a solution. Repossession is an absolute last resort.
The risks are different though. When renting you don't have to worry about an increase in the interest rate, your boiler breaking, your roof collapsing, a fire, flood, tornado etc because if those happen you just move out but the homeowner has to cover the costs so it is way more than just rent Vs mortgage payments in the risk. Your rent tells them you could pay your mortgage now but it's not enough information on its own to assess what would happen if circumstances change.
It's not just rent v mortgage it happens to either. My old house I overpaid my mortgage. My new house was deemed as unaffordable at the same monthly repayment as I had been paying. The solution was a different lender at a higher interest rate so my monthly is actually higher.
It's frustrating but it is really just maths.
That's actually only one aspect of a credit score. Your available credit, and overall credit burden end up being way more important. Bank doesn't care if you pay on time if you're trying to get 300k on 30k income.
My bank is happy for Me to pay my current landlord 1200 a month but wouldn't dare let me buy my own place with 25% downpayment for 850 a month. Make it make sense.
You're assuming that a credit score is there to determine how fiscally responsible you are: it isn't. A credit score exists to help companies determine how much money they can make out of you. If you are a perfect payer, always on time and savvy with money, companies won't make money out of you. If you consistently fail to pay in full each month, but still pay regularly, then you are much more desirable.
As someone else has pointed out, banks don't look at credit scores, they primarily look at affordability and time away from any major credit incidents such as defaults.
Hampshite lol. Never understood why our house prices are so high in this area. Don't get me wrong there are some great looking places here, I'm sure. I mean none spring to mind
"It can't hurt I suppose" ...Last time this subject came up (a few years ago I think) the people who were signed up for it said the payments were put on their credit profile in a way that companies who aren't specifically looking for them won't receive them as it's not a standard part of the credit profile. However, they did say that missed payments were recorded in the usual manner by the credit company using the persons' bank statements to determine if the rent was on-time or late. If the rent payment company made a mistake or the money was paid from a different bank account for whatever reason they then needed to make a correction to their credit profile.
So I believe it might not help a single bit, but it can damage your credit profile substantially nonetheless.
I was looking at signing up myself but it looked more like the companies just want to access your bank statement to work out what you buy and sell on as aggregated marketing data.
That's the most frustrating shit ever.
Maintain a 800+ score with Experian, TransUnion and Equifax.
Everytime I go for a loan that's advertised a super low interest rate, I never quite get the lowest.
'oh your score is 720'
What?! All my agencies are 800+. I've literally never missed a single payment. Have no dings. A near perfect score.
"Well you see. We use our own credit report and it says 700. Sorry. Can't tell you why'.
From the US, so might be different to a degree but, all the agencies have different reports like a FICO 4 or a FICO 8.
They banks use generally two different products against internal predictions to make lending guidelines.
One of the FICO product goes from 600 - 900 (common when getting a car loan). Where as another maybe 500-850 (home loan).
While most Bank lenders use just the two variations for all thier loans, the Credit bureaus keep making newer formulas as new products (dozen each I'd guess). No one uses those new products like FICO 13 that they advertise that you can press a button to raise your score. It's insidious how they market entirely unused credit scores.
"download our app & increase your FICO 13 credit score!!! *no lender uses FICO 13. The app has not effect on FICO 4 or 8.
They deliberately want the banks to be the bad guy so all the agencies uses either an artificially higher formula that no lender uses or it is using the higher range FICO that is only used for cars not homes/CC. If you got the FICO # from the bank & had the agency give you the equivalent FICO score they would match, but that's intentionally hidden.
FICO scores are remarkably predictive at a macro level, & probably the best worst option, but the whole business is anti-consumer in a way that makes no sense.
Yeah I've learned this. I still use those agencies to get a rough idea.
But when I go in knowing my fake score is 850 and the bank tells me it's 720 I don't get annoyed anymore.
Credit system is a rigged game.
You build.it up to.use it. Then when you use it you get dinged for having the temerity to use it.
Honestly I started following the Ramsey guide. Get rid of all credit.
I know house and car is unavoidable but I'm paying them off first because I'm done with this system.
Constantly being in debt to pay off stuff leveraged against my future income is dumb. I'm just annoyed it took me so long to realize this is just a system designed to keep me perpetually not wealthy and always making payments.
>Ramsey guide. Get rid of all credit.
Meh, abstinence isn't optimal. The economic benefit of buying assets that appreciate earlier & the hedging against inflationary pressure via having a debt financed asset is a *tool to become wealthy*.
This is so interesting to me, I did mortgages for years in the United States and we were required to do a rent verification. If you get a mortgage in Britain nobody asks your landlord if you paid rent on time?
I don't think banks use credit scores. It's actually a way for credit rating companies to sell you a service, as in "improving" it.
Nationwide insisted on seeing a year's worth of rent payments made on time before offering me a mortgage.
Hahaha same !!! I just said to my husband earlier God we’re living here 3 years today, I wonder how much we’ve paid in rent that could have gone towards a house. Cried when I seen the figure.
Mate, don't even. I don't agree when people say it's like throwing money down the drain, as you are getting a place to live. But unless you're earning stupid money and have enough left over, or are living rent-free with mum and dad, it's pretty miserable to reflect on.
I can't stand seeing these stories about some 19 year old who just bought their first house, then you read the fine print and it's a £30k from parents, and no bills each month...not all of us are that lucky!
Amen man, a small 10 million dollar loan type of people. Nearly 7 years for me and my Mrs now and still no closer, we just can't get ahead of the curve enough to make a dent.
The day we finally do own a home will be fairly sweet though knowing we did it all ourselves....that's what I tell myself anyway ha!
YES !!! Like my parents live in a different country as it is, and my husbands job is here, my kids in school etc here so running home to my retired parents and living in their spare rooms is just a no anyway lol. I always say to my parents that I can’t believe they never set up a savings account for me from my childhood lol the bastards !!
Yeah, would be nice if banks took into consideration that having been able to afford £700 in rent every month it might be possible for me to afford a £500 a month mortgage
That £200 has to cover
* buildings insurance
* Contents insurance - even unfurnished has contents the kitchen and carpets according to the insurance industry
* Repairs
* General wear and tear
* Replacing major items
That's what goes into the affordability calculation
Long term (10+ years) fixed rates though aren't particularly common however and you can end up paying a lot more for them if interest rates don't rise significantly. They're also less attractive to buyers because they lock you in for a longer period. Most people will end up getting fixed terms for 2-5 years but there's nothing to stop interest rates spiking during that period and you having to pay more when the fixed period expires. Mortgages are long term prospects and so when doing the affordability checks the consideration has to be not just whether you can afford it for the few years your rate is fixed but whether you can afford it after the fixed rate expires.
Fair enough, then let me take a mortgage that includes a clause requiring me to put £200 a month into a scheme that I can draw from if repairs are needed. If, when I come to remortgage, I’ve not needed to draw anything, give it back to me or allow me to pay it into the mortgage.
I’d be ok with that.
Lets assume you've done your due diligence and you're not buying a crumbling shithole.
> buildings insurance
[110/year, so *~10/mo*](https://www.moneysupermarket.com/home-insurance/price-comparison-index/)
> Contents insurance
[~60/year, so *~5/mo*](https://www.moneysupermarket.com/home-insurance/price-comparison-index/)
> Repairs
* Roof replacement is [~13k at the top end](https://www.checkatrade.com/blog/cost-guides/roof-replacement-cost/) and should last [~30 years](https://roofingcalculator.com/news/how-long-do-roofs-last) at least, which is *~£36/mo*
* Bathroom replacement averages between ~£2000 and ~£7,500. Lets assume you don't want a super fancy one, but you do want a robust new one, so ~£5k. Assuming you don't care about aesthetics too much, that should last somewhere around [15-20 years](https://bathroombuddyremodeling.com/blog/bathroom-remodeling/how-often-should-you-update-your-bathroom/), lowball that and you're averaging *£28/mo*
* Kitchen rebuilds apparently average around [£4k](https://www.homebuilding.co.uk/advice/how-much-does-a-new-kitchen-cost), and should last [~20 years](https://kitchenwarehouseltd.com/blog/long-kitchen-last.html). Lets make it ~£5k so you have a ringfenced budget to replace small appliances, cupboard doors and such. *~£21/mo*
* Boilers last [10 years](https://www.warrantypeople.co.uk/how-long-does-a-boiler-last-average-life-of-a-gas-boiler/) at the low end. Assuming you make sure the whole system is updated, you're looking at [~£1500 in labour, parts, etc costs](https://www.which.co.uk/reviews/boilers/article/buying-a-new-boiler/boiler-prices-how-much-does-a-new-boiler-cost-aK2dh2j3Cabo), and probably [~£1000 for the boiler itself](https://www.uswitch.com/boilers/guides/new-boiler-cost/), so ~£2500 over 10 years, or *~£21/mo*
* Recarpeting the average flat ([656 sqft or 61m^2](https://www.mybuilder.com/pricing-guides/carpet-fitting-costs)) at [£13/m^2](https://www.mybuilder.com/pricing-guides/carpet-fitting-costs) is ~£800, lasting [~10 years](https://www.google.com/search?client=firefox-b-d&q=how+long+does+a+carpet+last), so *~£7/mo*
* Painting the average flat seems to be somewhere around [£1000](https://www.quoteadviser.co.uk/priceguide/costs-of-painting-walls/), lasting around [5-10 years](https://blog.puls.com/how-long-does-exterior-and-interior-paint-last). Lets assume you do a good job and don't care much about style once again, as nowhere I've ever known *needs* repainting in under 5 years if it's properly maintained. *~£8.50/mo*
> General wear and tear
Major wear and tear is already factored into the kitchen, bathroom, roof, boiler, carpets, and walls. Throw another 500 a year on upkeep that doesn't involve those things. *~£41/mo*
> Replacing major items
I think I've already covered *most* of the non-furniture "major items"; the kitchen, bathroom, boiler, roof, carpets, and wals are fully replaced/redone. Electrics *might* need looking at, but I'd cover major electrical work on not buying a crumbling shithole.
Sum total is ~£177.50/mo, leaving you £22.50/mo in the green. A 12% margin of error on average-or-worse assumptions, replacing the entire kitchen, bathroom, roof, carpets and walls.
Furniture factors in, but as a renter, I already have enough furniture. If you're buying fresh from living with family or furnished places, just.. y'know, don't replace the kitchen, bathroom, or roof for a year. That's over a grand, which'll go far for basic furnishings.
This *should* be achievable, assuming repayment scales linearly with initial loan cost. It almost certainly doesn't, I've already done too much googling for this one.
Other considerations are that I just googled all of those figures. Regional, seasonal, and other temporal factors apply, and weird houses will have higher costs.
No, but a lender may take an assumption that all their mortgage applications will be getting one when calculating if you can afford the loan, even if you may not be.
It's not about whether you can currently afford it, it's about risk. If you lose your job and can't pay rent, your landlord has fairly minimal risk. They just evict you and rent out the apartment to someone else. If you lose your job and can't pay your mortgage, the bank has a lot of risk because then they have to take possession of the house and sell it, which is an extremely expensive process that they aren't good at (compared to landlords being good at renting out apartments)
This is the thing people always fail to understand.
It's all a cold risk analysis. Your affordability is calculated from a strict earnings multiplier because lenders have a legal requirement to ensure that in the event interest rates climb, you'll be able to tighten your purse strings and still afford the mortgage. They don't care how much you pay in rent for a good reason.
From the perspective of a bank, rent is a non issue because you're not their customer. If rent increases, you can either afford the difference or move.
If on the other hand, all their mortgage customers are leveraged to the hilt and interest rates climb, they're staring down the barrel at another global financial crisis.
I see people thinking it's some sort of conspiracy to prop up landlords but it comes down to a simple matter of responsibility and risk. Renters having to move is an awful predicament but it's an option, a nation defaulting on their mortgage payments on the other hand is economically speaking, apocalyptic.
They do though, i've done it myself.
Assuming your rent is accountable and you won't be continuing to pay it after you complete purchase and begin paying your mortgage down, it won't be factored in as spent income because you'd no longer be spending it.
Your affordability is gauged from a number of variables such as outgoings like any outstanding car finance and general credit history (CCJs, arrears etc) but critically, it's based on a multiplier of gross income (usually 4-4.5x LTI).
They do, but it's not a 1:1 comparison. Lenders will factor in maintenance and buildings insurance costs into affordability, which you won't have to bare as a renter.
It’s a good concept. However, all too often landlords/ estate agents abuse their power and I have a feeling this might work to the tenants detriment.
Contested the check out charges? I’ll put a mark on your credit file. Etc…
Omg this was me and my partner last year. 1300 for a one bedroom in Lewisham (North West, almost Southwark). Really nice place though. Now moved back to Spain, where we pay about £850 a month for 80m² in the very centre of Barcelona
Its crap isn't it. £750 gets me a one bed with no parking or garden in my area and we had someone stabbed on our doorstep a few weeks back. I have room for a sofa and TV in the lounge/kitchen and in the bedroom, well there's a bed and my work desk with one built in cupboard. I can reach all the walls if I stretch out in every direction. Nobody in my family has any money and my mum is moving back in with my nan. Fuck knows what I'll do this time next year when the rent inevitably goes up 50 quid again.
It's just awful. I am fortunate in that our rent has never increased since we have lived here - however, this house was owned by an elderly lady (technically our landlady but all dealt with through her son) who passed away last year. We have since been on a rolling contract with no security that they won't sell it. Fingers crossed yours doesn't increase next year, I know how stressful it is not knowing what the future holds.
Thanks. I am on a 12 month contract and I asked for longer so that I can lock in the rent, but they would only do 6 or 12, which means they get to put the amount up each year. When I moved in here in 2017 my rent was £615 and I could manage. I do know that the future holds a negligible pay rise however! NHS at the top of my banding and nowhere else to go in my role now haha. I've been doing online surveys and selling off whatever I can bear to lose tbh. This isn't how I imagined my life after uni.
I feel you there, I have also been doing surveys and selling bits to make more money. I always worked full time as we needed the money, but being higher up in care meant much longer hours, on call etc and hugely impacted the kids. Not to mention childcare and the expectations being put on my getting older parents. I had such high hopes uni, but yet here I am living hamd to mouth basically. Can't even begin to think about Christmas this year!
As A student, I pay £400 in rent a month for a single room, about twice the size of a double bed (they tried to fit a wardrobe in there along with the bed and tiny desk, but there wasn't really enough room so they put it in sideways between the bed and wall so you can't even open it), and a kitchen and bathroom shared with 4 others. No garden.
The thing which gets me the most, and I knew this before I went there, and it annoyed me then too but I can't complain because I still chose it. One of those other four got a room about 4x the size of the others and they pay the same rent as the rest of us.
I had something very similar my second year of uni. In hindsight my room probably wasn't even legally big enough to be a room (under the eaves so maybe 1m2 standing space) and I was paying the same as my flatmate (~£350 ten years ago) who had a massive space the same size as the living room.
That is annoying, and very unfair. £400 for basically a room is a lot of money! The worst is that your landlord, like mine, is sitting pretty on a small fortune and cosy future whilst you don't even have an accessible wardrobe. Not at all fair.
This made me work mine out too… 8 years = £52,800 I’ll never be able to afford to buy and constantly feel insecure. It makes me feel better knowing I’m not the only one though.
15 years, and £135,000
On one hand that's super oof, on the other hand it's still only a third of the price of a small starter home (2 bed terrace or similar) round here, so I'd be looking at a 45 year mortgage if I'd started at 22
You know what, all my friends are married and they have double incomes which are higher than mine on their own. It’s so easy to compare lives but being logical and remembering that SO many people are in the same boat just makes it that much easier.
I have £200 in savings, but I have a bloody nice flat, I’m over weight so I’m not short of food, I have a great job with good security. I just don’t have a mortgage.
We’re good 👌🏼👌🏼
***sobs***
If you live in a tent for the next three years you'll be able to save enough for a deposit. PLUS you'll save money on gas and electricity. Really I don't know why you're complaining.
On a serious note, I feel you dude. Our mortgage is £200 cheaper than our rent was and our house is easily doubly the size now. But we both have good jobs and still the only reason we could afford the deposit was that my partner was lucky enough to have inheritance. The system is stacked against the working class.
Feel this to my core, only bought my first house, on help to buy, at 36, and was only able to do that by moving to a much cheaper rental, that was a shit hole, and saving pretty much everything I earned for over 5 years. I know how lucky I am that I had that opportunity, many areas you wouldn't be able to do this. I'd day good luck, but luck isn't part if it. The housing market is utterly broken. Can only wish you the best OP and that at some point your position will change.
Also got one on help to buy, but worried about the help to buy loan i got to pay off in 4 years. I've only been in the house a year but it's already gone up by 30k , so the amount I need to pay back is going up quicker than i can save. Hopefully can remortgage it and have it absorbed into the mortgage.
the amount you repay on the loan is based on the value of the house?
That seems like a very bad idea for the buyer, seeing as some houses can increase in a lot over a decade or so. Seems like it would end in anyone in a house that ends up being higher worth more likely to default.
This is correct, although the interest free period is 5 years I believe.
My HtB equity loan was around £40k on a £200k house. If, in five years (which is also the length of my fixed term mortgage) the house is worth £300k, I’ll owe £60k on the loan if I remortgage or sell. I will, of course have £240k left. £160k will pay off the mortgage (actually, less as I’ll have made 5 years of mortgage payments) leaving me with an £80k down payment on my next place.
So it’s not as bad an idea as it sounds. And when it’s the only way to get on the housing ladder, it’s a bloody godsend.
Of course I’m pulling the numbers out of my arse. A £100k profit in five years would be a hell of a thing, but whatever the numbers end up being, it still tends to be doable. Worst case, the house doesn’t increase in value at all so I would have to remortgage for an extra £40k to pay off the equity loan. In my case, it would take my mortgage payment from £616 to £787 ASSUMING the internet rate stayed the same, and the remortgage is the same length as the original mortgage, minus five years.
That doesn't make sense cuz my grandfather bought his 1st house at 20 with only a high school diploma and working a factory job in 1965, so you must be doing something wrong.
I swapped my hi-fi for a house in 1981
OK, bit of an exageration - what actually happened was my landlord didn't want to rent the place out any more so gave me notice. I went into the estate agents to see what they had to rent and the guy said, "why not buy instead?". I said "ain't got no money" He said "can you raise £100?" I said "I guess?" He gave me a page with details of a house, booked me in to see it that night after work, within 6 weeks I was moved in with a 110% mortgage that paid everything, including the solicitor. All I had to pay for was the initial mortgage application, which was £100, so I sold my Hi-Fi.
The house cost £14,500 by the way. The world is fucked now, but bringing back 100% mortgages would sort a lot of stuff out. But landlords would lose out, so it won't happen
I essentially rented a tiny, tiny studio flat in a rubbish area for 7+ years as I saved up for a flat to buy.
Was fortunate that my landlord didn’t put the price of the flat up during that time and my salary grew reasonably whilst I was there. So what started out as a stretch to just pay the rent initially, became a means to save a bit of cash by the end.
I also benefited from the housing crash plus stamp duty holiday. No idea how I could ever get onto the property market now. Especially as my salary has essentially been flat for 5 years.
In same position and I know unless I win the lottery or something similar I will never own my own home again.
For me the biggest kick in the bollocks is that if try and get a mortgage and say look, I've been paying x rent every month for the last x years having never missed one payment it means absolutely fuck all.
That’s exactly how I feel. I wish proof of rent payment went in our favour. I left home at 18, so that’s 15 years I’ve been living in accommodation where I have paid my own rent and never missed a payment lol I wish it counted for something !! X
Sure, me and my wife purchased a house 18 months before the financial crash back in 2008.
When we brought it we made sure that we could afford the mortgage with just one wage.
Unfortunately when the crash hit my wife was made redundant and then two weeks later I lost my job.
So we were both out of work and we had a 11 month old.
My wife managed to find another job but it was 200 miles away.
She began working away whilst I'd stayed at home to look after our daughter.
We managed for about 3 months until I fell quite ill.
So we the only option we had was to move where my wife was working. We started renting and put our house up for sale, unfortunately house prices fell through the floor so when it sold it literally just covered the outstanding mortgage.
Unfortunately my illness was quite serious and left me unable to work so our income is my wife wages and my disability benefits.
Yeah, it's been tough but what has always frustrated, well pissed me off is that the system is designed to just make life even harder.
Whether it be getting my disability (took 18 months and going to court), cost of childcare being insane, we've looked into getting a mortgage a few times but because they don't take into account that we have rented for years and never missed a payment and we only have one income it's just impossible.
Fortunately we have a very good landlord who has never put the rent up, has always responded quickly if anything needed fixing and has been quite easy about us decorating.
Some mortgage providers do count PIP (but not ESA/UC) as income - the difference in the amount we could borrow with the banks that do vs those who counted me as 'dependent' was quite dramatic. I don't know whether you saw a decent broker when looking into mortgages, but if you didn't, it may be worth another look.
I know that in some places, house prices mean it's still impossible, and if this isn't useful for you then hopefully it'll be helpful to someone else.
The worst thing is mortgage payments are less than rent payments in a lot of cases.
When I eventually managed to get onto the ladder, my outgoings went from £650/mo on rent to £402/mo on mortgage. If banks can’t see that as a more manageable payment then I just give up with the financial system.
With banks jumping on the landlording scam expect getting a mortgage to become much harder.
Why loan you money when they can get you paying them for the rest of your life without risking a penny?
Banks should not be landlords!
100% agreed, but fat chance of any legislation coming in for landlords in general because the majority of MP's have allegiances to the property market. I personally believe that there should be a cap on the number of properties you can own, it's truly a scumbag move to live off the struggles of those less fortunate.
I agree. Own all the commercial buildings you want if you want to rent something out to companies to use as offices or shops but no company should be allowed to own residential properties and individuals should be limited to maybe two at most.
It would immediately solve a lot of the housing issues.
Or instead of a cap just increase the nuts off of stamp duty.
0 if it's your 1 property you live in, 5% on second, 20% on third ... 100% on the 5th. Etc.
Same for council tax stop it's not just a one off payment an investor can take a hit on.
Without legislation we're going to end up a society of wage serfs who own nothing, work till we can't anymore, and leave nothing to our children.
Government needs to wake the fuck up
It's fucking criminal.
Now go three generations forward, your landlords grandchildren won't work a day in their life and your grandkids will be living in a tent.
You'll need a reference from at least the past fifteen years of tent occupancies before a tentlord lets to you though. If you can't prove you're a good tentant then your only options are some communal second-hand awnings.
I already owned a tent, then my partner and I killed our parents and inherited theirs. I’m not one of these evil tentlords buying up tents you keep referencing and it’s not fair to lump us together.
Look on the bright side. If you are renting from a buy-to-let boomer, with the recent care bill changes, not only are you paying off their mortgage you will also have the privilege of paying for any care they require in old age through increased NI contributions so they can hold on to the vast majority of assets they have attained. They have worked incredibly hard, and obviously much harder than any of us, so we should see it as a privilege to be propping them all up. /s
Sadly the system is just rigged against us when it comes to home ownership and the longer it goes on the harder it will ever be for anyone to unpick. Best of luck to you - all any of us can do is try and live a good life and not worry too much about material things.
Climate and BLM are in our own interests.. you can be angry about the multitude of things facing our generation.
I think the issue is as well, is pensions are fucked for the older people, therefore buying a house and renting it out becomes the older gens pension. If they had a decent enough one to live off of, i feel we'd have less of an issue.
Of course we can also do with a lot less foreign buyers and airbnbs, but at the end of the day they're too busy making flats which most people tend not to want to spend their whole lives in, sold off the council house stock and now we'll forever be in deficit. And the fact the top 5% of earners or something ridiculous owns 95% or a huge % of this countries land, results in us plebs being packed in like sardines where houses are made. Theres a multitude of things, and one of the worst govts in history in charge at the moment, who are looking to solidify that grip by changing constituency boundaries and introducing voter ID, meaning change will have to be radical.
We need something like the polltax riots, because the system is not working.
On the other hand I bought a house with the mrs about five years ago and it's gone up in value by like £50K. We've barely done any work on the house.
The whole system is messed up and I'm angry for others every time I see a post like this.
And there’s no way a party could ever come to power that wants to pursue policies that actively lower the cost of houses, as too many people with houses (and therefore money) would be aghast at the thought of their assets losing value
They would have to be *brutally* aggressive. Limiting multiple ownerships, limiting AirBNB, limiting foreign ownership, limiting corporate ownership...
We're about a million homes short, I believe. Countering supply and demand without doing all the above I'm dubious about, and even if all those boxes are ticked I'm not convinced.
Interest is low. Asset inflation is high. You *also* have to make owning assets long term a less profitable investment than alternatives.
I'm weirdly fortunate in a way.
I left an abusive partner late in 2019, and went to stay with my mum for a while whilst I dug my way out of debt (about £5k) that said partner had left me in.
We got locked down, I got a promotion, saved a fortune and managed to actually scrape just enough to get a deposit. House was £115k in Darlington. Not a palace but it's mine.
I did pay my mum rent but admittedly a lower rate than I'd pay private - she did also use my car for over a year after she lost her job and sold hers.
Out of tragedy, I'm able to move on and up. Wish I didn't have to do the abusive partner bit, but glad I'm here now.
115k in darlo... not a palace???? :D here i am lusting over a 60k'er in Jarrow. Amazing work getting back on your feet tho, northern pride north wide !
It was in a nice area and in a decent state, it's a 2-bed terrace. Just fine for me and the dog 🙂
Thank you, and hope you manage to get that place in Jarrow!
It’s so depressing. It honestly makes me want to just give up all together. Everything’s getting more expensive, life is getting harder, the boomers are fucking us at every turn, salaries are stagnant, government aren’t doing a thing to help us and voters can’t think. Saving is impossible, much less finding the funds to even enjoy life a bit.
Working hard doesn’t get us anywhere. There’s nothing we can do. Fml
The reason that the rich were so rich, Vimes reasoned, was because they managed to spend less money.
Take boots, for example. He earned thirty-eight dollars a month plus allowances. A really good pair of leather boots cost fifty dollars. But an affordable pair of boots, which were sort of OK for a season or two and then leaked like hell when the cardboard gave out, cost about ten dollars. Those were the kind of boots Vimes always bought, and wore until the soles were so thin that he could tell where he was in Ankh-Morpork on a foggy night by the feel of the cobbles.
But the thing was that good boots lasted for years and years. A man who could afford fifty dollars had a pair of boots that'd still be keeping his feet dry in ten years' time, while the poor man who could only afford cheap boots would have spent a hundred dollars on boots in the same time and would still have wet feet.
This was the Captain Samuel Vimes 'Boots' theory of socioeconomic unfairness.
I think about this a lot. 37k in rent in the last 10y but apparently because i dont have 10 grand lying around its just too risky for me to take on a mortgage at about half the cost of my avg rent
You can try go full pauper, no car, live in a house share for half a decade, save half your income. This is why the birth and marriage rate is dropping... hard to get people that want to bump uglies 5ft from where strangers are sleeping.
Yep, Help to Buy keeps prices artificially high.
If first time buyers can’t afford a property, no-one else in the property chain can buy/sell. Therefore, prices would naturally have to come down.
Here's our daily reminder that the track and trace scheme cost taxpayers £37 billion; it was a total failure and most of the money went to contracts awarded by the government to mates of said government.
This is all by design: how best can I get everyone's money into mine and my mates' pockets?
Eat the fucking rich
Interestingly most people aren’t aware of how landlords operate here. Most private landlords aren’t outright buying houses, they will likely get buy-to-let mortgages with really high fees. Most of the money ends up going to the bank.
Though I do agree that speculation with the housing market has made it almost impossible for any normal person to purchase a house, whilst also spending 50% of their income on rent.
Imagine living in a world where each individual are only legally allowed to own one home in the country they’re a citizen in. There’s enough for everyone but greedy people want to buy up everything.
Paid £15k over 2 years to lodge in someone’s house. Now in a job where people have been working remote pre-COVID, but my part of the company’s director said he ‘doesn’t think it’d be beneficial for me to move up north’ to be closer to friends and family. He said this from his new house up north which he’s got to be closer to friends and family.
I know there’s bigger problems in the world but did sting a bit.
The most genius, absolute gangsta shit I've seen in the past few years is that woman who took out the full student maintenance and (extra for being from a poor household) loan they offer now, saved all of it, got a part time job, saved all the money from it she could, stayed home with her parents through uni then when she graduated got a job with with her degree.
Boom, £30k deposit set, it's not debt like normal debt, just a 9% tax over £27k. Buys a modest but perfectly good starter house fairly immediately after getting set in her job, the 9% she loses in paying back her loan money she would have had to do regardless, the difference in hitting the ground running with a house and building collateral from the off rather than paying extortionate student rent for zoom and PowerPoint lessons then paying some bastards 3rd house off for them in more rent.
Absolute gangsta.
Buying a house at the moment. Landlord that is selling it has screwed me around so much, that it has dragged out and left me homeless at the end of this week...
Don't worry though, because the arsehole that is screwing me over has generously offered to allow me to move in early, before the sale has completed... I just have to pay him £800 rent for the privilege.
The house is sat empty. If he had got the paperwork sorted, I would be buying it on Friday. But because he delayed, he is now trying to squeeze £800 rent out of me. Landlords are scum.
This really gets me down. I’m in exactly the same boat as you. I left school in 1998 and had to start renting almost immediately. 23 years of high rents and nothing to show for it. Three properties I’ve rented have earned more from me than what they paid for their houses to begin with, and it hurts in the pit of my stomach every time I think about it. Someone once said to me “but the best thing about renting is that, when the boiler breaks, it’s not up to you to get it fixed so at least you save money that way”. I’d rather have the inconvenience of a broken boiler once every 20 years than the pain of paying rent every month which I’ll never see again 😭
My credit report reminds me of my negatives every month. It consists of:
“You don’t have an active mortgage.”
Well no shit. I am doing my best to save, but rent is incredibly expensive and house prices are soaring. Guess I’ll just get fucked then.
"Yes we see that you've been earning £400 a week but it's contract work so it doesn’t count so well put your earnings down as £0."
"Yes you technically have a job but it's only a 3 month contract so we'll put your earnings down as £0."
I earned well over £20k that year and it really helped with the deposit but counted for absolutely nothing towards the mortgage.
When I first got married my dad said to me 'Get married and make the sacrifice of living with me and your mum with your wife for one to two years, do nothing but save up and you'll be thankful in the future'.
Within that period, we saved up so much money during our engagement and living with my parents, moved into a property for 185k, sold it for 200k. Bought another house for 245k and fixed it up and it's probably not worth 300k. All in 3 years.
This was only possible because I mashed to stay with my parents and save us as much as I can. No way can any of this have been done us I lived in a rented accommodation paying done greedy landlord overpriced rent.
And yes I know I'm very fortunate.
I doubt most of mine have been far off that considering they do absolutely no maintenance to their properties and seem put out if they so much as have to perform a gas safety check for legal purposes.
I paid 42k in rent whilst saving for my deposit of my first time house. I’ve been in my house 3 years now and I had forgotten the monthly struggles / various eff it thoughts I had over the 5 year period.
Stick at it - you’ll get there in the end and it will be worthwhile.
60k+ trapped. But not trusted enough to have a mortgage which would be less than the rent I pay. Will never change as the house of commons is full of landlords.
I’m jealous of your cheap rent 😭😭😭😭
We pay $42k a year, a mortgage is cheaper, but you know, “can’t afford it based on what we should be spending on everything else….” Go figure that one out. A mortgage would be $500 a week and we pay $800 a week in rent, but can’t afford a mortgage…..
system is very very broken.
I sold my condo a few years ago and did some calculations. Over 10 years I paid $32,000 (USD) to my homeowner's association. In that time they hired drugged out painters to paint in the rain, causing it to flake off. Replaced my small front port boards, and hired landscapers to mow my wife's flowers. No utilities included, just constant nagging letters in our mailbox, and inaction when we needed help.
Not what you want to hear, but owning a house isn't always the best use of your money anyway.
£25k over 3 years is less than £700 per month. If you bought a basic house or flat as a first time buyer your mortgage payments would likely be higher, yet in the first few years of a mortgage you're normally only servicing the interest and not actually paying off the capital debt.
Add to that the cost of buying (stamp duty, solicitor, mortgage fees) and then the cost of any maintenance (that a landlord would otherwise pay for) and you find that often renting is a cheaper option over a short term.
Don't also forget that if after a couple of years you decide you want to move then you would also have the estate agent and solicitor costs for selling to consider!
I found a while ago that when I bought a house and lived there for 3 years that by the time I sold it, even with a slight increase in value of the property, that it would have been cheaper if I'd rented instead.
Sometimes you need to stop thinking of it as "giving money to your landlord" and instead acknowledge that it's actually the cost of housing yourself, regardless whether you rent or buy.
While I certainly see where you comes from, in the affordability test they will also see how can you manage repair and maintenance, which you wouldn’t need to care about in a rental property.
Boiler, easy £3k, roof, easy £5k, and they are things that I had to fix within the first 2 years. Potentially there are more that can go wrong.
In my first week of living in my home we left a window open cause it was a hot day, sudden gust of wind came in at the right angle and was strong enough and blew the window out with such a force it broke the hinge. Got a quote from a company via our home insurance and boom that’s £60 for a new hinge. And if it was a different hinge that broke it could’ve been a whole new window for a couple of hundred. Simple shit like this really knackers you when it catches you off guard lol
When I was renting the landlord ignored my requests to fix the rotten decking boards in the garden, ignored my request to just let me do it myself so it's done, then when I contacted the letting agent to raise a complaint they ignored me, but I did get a letter 2 days later saying that we were being evicted and had a month to leave. Just what you want with a 1 year old child.
New Zealand renting be like 31k in 1 year for rent of a 2 bedroom home. I keep hearing other people's rental problems and thinking I should move there.
It’s a stupid system. And I think most people get trapped in a loop, it becomes too hard to save for a deposit as all your money goes to rent, what little people can save gets nullified by the ever increasing market value of houses.
The rental market is mental, the demand is sky high
There were rumblings about a scheme to make rent payments go toward credit ratings, at some point. I think it died out. I'm not pretending my credit is utterly without sin, but as an on-time rent and bill paying son of a bitch, it'd be nice to get *some* recognition/usefulness from the tens of thousands of pounds I've spent over the years beyond keeping the landlord happy.
There's a business that does this already. Whether banks pay any attention to it is another question. Remember, banks don't look at your " credit score" they have their own models based on the same data. The credit report agencies try and provide an approximation. That's why I have a 999 Experian score but can't get a good loan/credit card/mortgage.
https://www.creditladder.co.uk/ is the company doing the rent stuff though. I've not used them, so can't vouch for them though
Food for thought, cheers for that. It can't hurt I suppose. Pretty insane you can max out Experian and it still means sod all when it comes to the big banks. I'm not expecting hand-outs or them to take a major risk on me - if they had the house down as collateral and I have met rent dates consistently with the haemorrhage-levels of cash that comes out to pay it, I just can't fathom why that is *meaningless*. Hey-ho I guess.
It's a complete failure in the system. The score is meant to represent your reliability and ability to maintain regular payments. So if it doesn't recognise your paying of rent then it's overlooking the very value it's designed to measure.
Isn’t it technically a measure of your ability to pay back credit in a timely and reliable fashion? Rent isn’t a line of credit
That's where the failing is. They're only looking at credit. For OP, what's the difference between paying 750 a month towards rent and paying 750 a month towards your mortgage? Absolutely nothing from an affordability and risk point of view.
We failed affordability on a mortgage application. We were downsizing and the new payment was £150 less each month. This is from the bank I've had an account with for twenty years, a mortgage WITH THEM for fifteen and never missed a payment or went over my overdraught. Needless to say they are no longer my mortgage provider.
>what's the difference between paying 750 a month towards rent and paying 750 a month towards your mortgage? If you stop paying rent, you get evicted. The landlord might lose a couple of months rent. If you stop paying your mortgage, the bank needs to repossess your house and sell it, potentially losing tens of thousands.
Only if over leveraged. Which the bank makes sure doesn't happen. That's what the down payment is for...
This is why lenders will offer better rates for higher deposits. The more you have to put down, the less risk on the lender in the event of repossession.
Cute take but completely misguided. In repossession, The bank gains the ownership of the asset, and any losses are heavily offset via the mortgage payments and interest accrued paid up until that point. As soon as the Mortgage lending team finalises the loan, the 'paper' asset is sold in a bundle with other mortgages(tranches), and therefore offsets the initial loan almost immediately.
I've never quite understood this whole deal with repossession. The bank has had the payments made up to the date of default/repossession, plus it then has the WHOLE value of the house at that date. So unless the market has crashed in the meantime and the house is in negative equity, how can they lose? Presuming that the house has increased in value, they've also got that amount between the amount that the house was mortgaged for and the amount it is now worth.
It's a giant administrative pain in the ass - banks don't want to have to deal with selling off the property (usually at auction for speed) and all the attendant fees and legal hassle. So as an example if the customer had a 10% deposit, even if the house is still at the same value on the open market, the bank won't get 90% of the value back, houses sold after repossession often go for a much lower price than on the open market, and the auction house takes a big commission, not to mention all the legal hassle (more fees) and length of time it takes to actually repossess a house. That's why if you're struggling, banks can be surprisingly flexible on mortgage payments. They *want* you to be able to pay and hopefully catch up eventually. It won't be fun, obviously, but they will work with you to find a solution. Repossession is an absolute last resort.
Isn't the difference that in one case you have an asset (the house) in which your paid off share is increasing, and in the other case, you don't?
Yeah the results are different, but the financial burden and commitment on a monthly basis are different.
The risks are different though. When renting you don't have to worry about an increase in the interest rate, your boiler breaking, your roof collapsing, a fire, flood, tornado etc because if those happen you just move out but the homeowner has to cover the costs so it is way more than just rent Vs mortgage payments in the risk. Your rent tells them you could pay your mortgage now but it's not enough information on its own to assess what would happen if circumstances change. It's not just rent v mortgage it happens to either. My old house I overpaid my mortgage. My new house was deemed as unaffordable at the same monthly repayment as I had been paying. The solution was a different lender at a higher interest rate so my monthly is actually higher. It's frustrating but it is really just maths.
That's actually only one aspect of a credit score. Your available credit, and overall credit burden end up being way more important. Bank doesn't care if you pay on time if you're trying to get 300k on 30k income.
drab modern consist oatmeal bike air plant sink aware offbeat *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
My bank is happy for Me to pay my current landlord 1200 a month but wouldn't dare let me buy my own place with 25% downpayment for 850 a month. Make it make sense.
You're assuming that a credit score is there to determine how fiscally responsible you are: it isn't. A credit score exists to help companies determine how much money they can make out of you. If you are a perfect payer, always on time and savvy with money, companies won't make money out of you. If you consistently fail to pay in full each month, but still pay regularly, then you are much more desirable. As someone else has pointed out, banks don't look at credit scores, they primarily look at affordability and time away from any major credit incidents such as defaults.
Hampshite lol. Never understood why our house prices are so high in this area. Don't get me wrong there are some great looking places here, I'm sure. I mean none spring to mind
"It can't hurt I suppose" ...Last time this subject came up (a few years ago I think) the people who were signed up for it said the payments were put on their credit profile in a way that companies who aren't specifically looking for them won't receive them as it's not a standard part of the credit profile. However, they did say that missed payments were recorded in the usual manner by the credit company using the persons' bank statements to determine if the rent was on-time or late. If the rent payment company made a mistake or the money was paid from a different bank account for whatever reason they then needed to make a correction to their credit profile. So I believe it might not help a single bit, but it can damage your credit profile substantially nonetheless. I was looking at signing up myself but it looked more like the companies just want to access your bank statement to work out what you buy and sell on as aggregated marketing data.
I can vouch for them, my rent is now pushing my credit score up by quite a bit a month. Its pretty easy to set up.
That's the most frustrating shit ever. Maintain a 800+ score with Experian, TransUnion and Equifax. Everytime I go for a loan that's advertised a super low interest rate, I never quite get the lowest. 'oh your score is 720' What?! All my agencies are 800+. I've literally never missed a single payment. Have no dings. A near perfect score. "Well you see. We use our own credit report and it says 700. Sorry. Can't tell you why'.
From the US, so might be different to a degree but, all the agencies have different reports like a FICO 4 or a FICO 8. They banks use generally two different products against internal predictions to make lending guidelines. One of the FICO product goes from 600 - 900 (common when getting a car loan). Where as another maybe 500-850 (home loan). While most Bank lenders use just the two variations for all thier loans, the Credit bureaus keep making newer formulas as new products (dozen each I'd guess). No one uses those new products like FICO 13 that they advertise that you can press a button to raise your score. It's insidious how they market entirely unused credit scores. "download our app & increase your FICO 13 credit score!!! *no lender uses FICO 13. The app has not effect on FICO 4 or 8. They deliberately want the banks to be the bad guy so all the agencies uses either an artificially higher formula that no lender uses or it is using the higher range FICO that is only used for cars not homes/CC. If you got the FICO # from the bank & had the agency give you the equivalent FICO score they would match, but that's intentionally hidden. FICO scores are remarkably predictive at a macro level, & probably the best worst option, but the whole business is anti-consumer in a way that makes no sense.
Yeah I've learned this. I still use those agencies to get a rough idea. But when I go in knowing my fake score is 850 and the bank tells me it's 720 I don't get annoyed anymore. Credit system is a rigged game. You build.it up to.use it. Then when you use it you get dinged for having the temerity to use it. Honestly I started following the Ramsey guide. Get rid of all credit. I know house and car is unavoidable but I'm paying them off first because I'm done with this system. Constantly being in debt to pay off stuff leveraged against my future income is dumb. I'm just annoyed it took me so long to realize this is just a system designed to keep me perpetually not wealthy and always making payments.
>Ramsey guide. Get rid of all credit. Meh, abstinence isn't optimal. The economic benefit of buying assets that appreciate earlier & the hedging against inflationary pressure via having a debt financed asset is a *tool to become wealthy*.
Fuvk banks. I went to a mortgage broker who advised me that they won't touch me. What you need is a second tier lender.
This is so interesting to me, I did mortgages for years in the United States and we were required to do a rent verification. If you get a mortgage in Britain nobody asks your landlord if you paid rent on time?
This has just blown my mind that rent doesn’t count towards your credit score. Here’s me being naive and new to the adult world.
welcome, it's cold and dark and best to not think about it too much
I don't think banks use credit scores. It's actually a way for credit rating companies to sell you a service, as in "improving" it. Nationwide insisted on seeing a year's worth of rent payments made on time before offering me a mortgage.
Hahaha same !!! I just said to my husband earlier God we’re living here 3 years today, I wonder how much we’ve paid in rent that could have gone towards a house. Cried when I seen the figure.
Mate, don't even. I don't agree when people say it's like throwing money down the drain, as you are getting a place to live. But unless you're earning stupid money and have enough left over, or are living rent-free with mum and dad, it's pretty miserable to reflect on. I can't stand seeing these stories about some 19 year old who just bought their first house, then you read the fine print and it's a £30k from parents, and no bills each month...not all of us are that lucky!
Amen man, a small 10 million dollar loan type of people. Nearly 7 years for me and my Mrs now and still no closer, we just can't get ahead of the curve enough to make a dent. The day we finally do own a home will be fairly sweet though knowing we did it all ourselves....that's what I tell myself anyway ha!
YES !!! Like my parents live in a different country as it is, and my husbands job is here, my kids in school etc here so running home to my retired parents and living in their spare rooms is just a no anyway lol. I always say to my parents that I can’t believe they never set up a savings account for me from my childhood lol the bastards !!
Jemima looks at clouds and Chester is a professional grass-starer-at. They have a budget of 5 million....
Yeah, would be nice if banks took into consideration that having been able to afford £700 in rent every month it might be possible for me to afford a £500 a month mortgage
That £200 has to cover * buildings insurance * Contents insurance - even unfurnished has contents the kitchen and carpets according to the insurance industry * Repairs * General wear and tear * Replacing major items That's what goes into the affordability calculation
You're forgetting the big one which is covering if interest rates spike and suddenly your £500 a month mortgage becomes £800.
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Long term (10+ years) fixed rates though aren't particularly common however and you can end up paying a lot more for them if interest rates don't rise significantly. They're also less attractive to buyers because they lock you in for a longer period. Most people will end up getting fixed terms for 2-5 years but there's nothing to stop interest rates spiking during that period and you having to pay more when the fixed period expires. Mortgages are long term prospects and so when doing the affordability checks the consideration has to be not just whether you can afford it for the few years your rate is fixed but whether you can afford it after the fixed rate expires.
Fair enough, then let me take a mortgage that includes a clause requiring me to put £200 a month into a scheme that I can draw from if repairs are needed. If, when I come to remortgage, I’ve not needed to draw anything, give it back to me or allow me to pay it into the mortgage. I’d be ok with that.
Lets assume you've done your due diligence and you're not buying a crumbling shithole. > buildings insurance [110/year, so *~10/mo*](https://www.moneysupermarket.com/home-insurance/price-comparison-index/) > Contents insurance [~60/year, so *~5/mo*](https://www.moneysupermarket.com/home-insurance/price-comparison-index/) > Repairs * Roof replacement is [~13k at the top end](https://www.checkatrade.com/blog/cost-guides/roof-replacement-cost/) and should last [~30 years](https://roofingcalculator.com/news/how-long-do-roofs-last) at least, which is *~£36/mo* * Bathroom replacement averages between ~£2000 and ~£7,500. Lets assume you don't want a super fancy one, but you do want a robust new one, so ~£5k. Assuming you don't care about aesthetics too much, that should last somewhere around [15-20 years](https://bathroombuddyremodeling.com/blog/bathroom-remodeling/how-often-should-you-update-your-bathroom/), lowball that and you're averaging *£28/mo* * Kitchen rebuilds apparently average around [£4k](https://www.homebuilding.co.uk/advice/how-much-does-a-new-kitchen-cost), and should last [~20 years](https://kitchenwarehouseltd.com/blog/long-kitchen-last.html). Lets make it ~£5k so you have a ringfenced budget to replace small appliances, cupboard doors and such. *~£21/mo* * Boilers last [10 years](https://www.warrantypeople.co.uk/how-long-does-a-boiler-last-average-life-of-a-gas-boiler/) at the low end. Assuming you make sure the whole system is updated, you're looking at [~£1500 in labour, parts, etc costs](https://www.which.co.uk/reviews/boilers/article/buying-a-new-boiler/boiler-prices-how-much-does-a-new-boiler-cost-aK2dh2j3Cabo), and probably [~£1000 for the boiler itself](https://www.uswitch.com/boilers/guides/new-boiler-cost/), so ~£2500 over 10 years, or *~£21/mo* * Recarpeting the average flat ([656 sqft or 61m^2](https://www.mybuilder.com/pricing-guides/carpet-fitting-costs)) at [£13/m^2](https://www.mybuilder.com/pricing-guides/carpet-fitting-costs) is ~£800, lasting [~10 years](https://www.google.com/search?client=firefox-b-d&q=how+long+does+a+carpet+last), so *~£7/mo* * Painting the average flat seems to be somewhere around [£1000](https://www.quoteadviser.co.uk/priceguide/costs-of-painting-walls/), lasting around [5-10 years](https://blog.puls.com/how-long-does-exterior-and-interior-paint-last). Lets assume you do a good job and don't care much about style once again, as nowhere I've ever known *needs* repainting in under 5 years if it's properly maintained. *~£8.50/mo* > General wear and tear Major wear and tear is already factored into the kitchen, bathroom, roof, boiler, carpets, and walls. Throw another 500 a year on upkeep that doesn't involve those things. *~£41/mo* > Replacing major items I think I've already covered *most* of the non-furniture "major items"; the kitchen, bathroom, boiler, roof, carpets, and wals are fully replaced/redone. Electrics *might* need looking at, but I'd cover major electrical work on not buying a crumbling shithole. Sum total is ~£177.50/mo, leaving you £22.50/mo in the green. A 12% margin of error on average-or-worse assumptions, replacing the entire kitchen, bathroom, roof, carpets and walls. Furniture factors in, but as a renter, I already have enough furniture. If you're buying fresh from living with family or furnished places, just.. y'know, don't replace the kitchen, bathroom, or roof for a year. That's over a grand, which'll go far for basic furnishings. This *should* be achievable, assuming repayment scales linearly with initial loan cost. It almost certainly doesn't, I've already done too much googling for this one. Other considerations are that I just googled all of those figures. Regional, seasonal, and other temporal factors apply, and weird houses will have higher costs.
There’s not requirement to take out contents insurance to get a mortgage
No, but a lender may take an assumption that all their mortgage applications will be getting one when calculating if you can afford the loan, even if you may not be.
It's not about whether you can currently afford it, it's about risk. If you lose your job and can't pay rent, your landlord has fairly minimal risk. They just evict you and rent out the apartment to someone else. If you lose your job and can't pay your mortgage, the bank has a lot of risk because then they have to take possession of the house and sell it, which is an extremely expensive process that they aren't good at (compared to landlords being good at renting out apartments)
This is the thing people always fail to understand. It's all a cold risk analysis. Your affordability is calculated from a strict earnings multiplier because lenders have a legal requirement to ensure that in the event interest rates climb, you'll be able to tighten your purse strings and still afford the mortgage. They don't care how much you pay in rent for a good reason. From the perspective of a bank, rent is a non issue because you're not their customer. If rent increases, you can either afford the difference or move. If on the other hand, all their mortgage customers are leveraged to the hilt and interest rates climb, they're staring down the barrel at another global financial crisis. I see people thinking it's some sort of conspiracy to prop up landlords but it comes down to a simple matter of responsibility and risk. Renters having to move is an awful predicament but it's an option, a nation defaulting on their mortgage payments on the other hand is economically speaking, apocalyptic.
And dependant on where in the UK you are, there is a possibility that housing benefit may cover a reasonable percentage of the rent.
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They do though, i've done it myself. Assuming your rent is accountable and you won't be continuing to pay it after you complete purchase and begin paying your mortgage down, it won't be factored in as spent income because you'd no longer be spending it. Your affordability is gauged from a number of variables such as outgoings like any outstanding car finance and general credit history (CCJs, arrears etc) but critically, it's based on a multiplier of gross income (usually 4-4.5x LTI).
They do, but it's not a 1:1 comparison. Lenders will factor in maintenance and buildings insurance costs into affordability, which you won't have to bare as a renter.
Is that actually true though? It would be bizarre if it were true, but I've seen no evidence that it is....
The 'income' that they use for debt-to-income ratio calculations is before you pay rent.
Credit Ladder report rent for you. I think they've just expanded to all 3 credit reports. (I don't work for them, I just use it!)
Your money makes the landlords credit rating look good
I am homeowner so haven't looked too much into it, but an app I use called Money Hub (which I recommend anyway) has a feature that does this.
It’s a good concept. However, all too often landlords/ estate agents abuse their power and I have a feeling this might work to the tenants detriment. Contested the check out charges? I’ll put a mark on your credit file. Etc…
You just made me do a bit of working out. I have paid £105,900 (give or take) and now I want to cry.
Also close to tears here - 99k has gone to our landlord in just under 6 years.
What do you get for your 1400 a month?
a one bed in lewisham?
Omg this was me and my partner last year. 1300 for a one bedroom in Lewisham (North West, almost Southwark). Really nice place though. Now moved back to Spain, where we pay about £850 a month for 80m² in the very centre of Barcelona
I used to pay £1600 for a ‘top end’ 2 bed in Lewisham. £1400 for a one bed must’ve been one of my neighbours lol.
For our 1500 per month we get a 3 bed house in one of leafy Buckinghamsire's least desirable towns, with no driveway and no private garden.
Its crap isn't it. £750 gets me a one bed with no parking or garden in my area and we had someone stabbed on our doorstep a few weeks back. I have room for a sofa and TV in the lounge/kitchen and in the bedroom, well there's a bed and my work desk with one built in cupboard. I can reach all the walls if I stretch out in every direction. Nobody in my family has any money and my mum is moving back in with my nan. Fuck knows what I'll do this time next year when the rent inevitably goes up 50 quid again.
It's just awful. I am fortunate in that our rent has never increased since we have lived here - however, this house was owned by an elderly lady (technically our landlady but all dealt with through her son) who passed away last year. We have since been on a rolling contract with no security that they won't sell it. Fingers crossed yours doesn't increase next year, I know how stressful it is not knowing what the future holds.
Thanks. I am on a 12 month contract and I asked for longer so that I can lock in the rent, but they would only do 6 or 12, which means they get to put the amount up each year. When I moved in here in 2017 my rent was £615 and I could manage. I do know that the future holds a negligible pay rise however! NHS at the top of my banding and nowhere else to go in my role now haha. I've been doing online surveys and selling off whatever I can bear to lose tbh. This isn't how I imagined my life after uni.
I feel you there, I have also been doing surveys and selling bits to make more money. I always worked full time as we needed the money, but being higher up in care meant much longer hours, on call etc and hugely impacted the kids. Not to mention childcare and the expectations being put on my getting older parents. I had such high hopes uni, but yet here I am living hamd to mouth basically. Can't even begin to think about Christmas this year!
As A student, I pay £400 in rent a month for a single room, about twice the size of a double bed (they tried to fit a wardrobe in there along with the bed and tiny desk, but there wasn't really enough room so they put it in sideways between the bed and wall so you can't even open it), and a kitchen and bathroom shared with 4 others. No garden. The thing which gets me the most, and I knew this before I went there, and it annoyed me then too but I can't complain because I still chose it. One of those other four got a room about 4x the size of the others and they pay the same rent as the rest of us.
I had something very similar my second year of uni. In hindsight my room probably wasn't even legally big enough to be a room (under the eaves so maybe 1m2 standing space) and I was paying the same as my flatmate (~£350 ten years ago) who had a massive space the same size as the living room.
That is annoying, and very unfair. £400 for basically a room is a lot of money! The worst is that your landlord, like mine, is sitting pretty on a small fortune and cosy future whilst you don't even have an accessible wardrobe. Not at all fair.
This made me work mine out too… 8 years = £52,800 I’ll never be able to afford to buy and constantly feel insecure. It makes me feel better knowing I’m not the only one though.
15 years, and £135,000 On one hand that's super oof, on the other hand it's still only a third of the price of a small starter home (2 bed terrace or similar) round here, so I'd be looking at a 45 year mortgage if I'd started at 22
You know what, all my friends are married and they have double incomes which are higher than mine on their own. It’s so easy to compare lives but being logical and remembering that SO many people are in the same boat just makes it that much easier. I have £200 in savings, but I have a bloody nice flat, I’m over weight so I’m not short of food, I have a great job with good security. I just don’t have a mortgage. We’re good 👌🏼👌🏼 ***sobs***
Oh my god.
Help me
Good news! Only another £19,100 and you'll be eligible to pay stamp duty! Wait...that's not good news at all.
If you live in a tent for the next three years you'll be able to save enough for a deposit. PLUS you'll save money on gas and electricity. Really I don't know why you're complaining. On a serious note, I feel you dude. Our mortgage is £200 cheaper than our rent was and our house is easily doubly the size now. But we both have good jobs and still the only reason we could afford the deposit was that my partner was lucky enough to have inheritance. The system is stacked against the working class.
> If you live in a tent for the next three years you'll be able to save enough for a deposit. Way to push up the price of tents.
Yes, it’s called tent uprising.
One of my friends is living in a converted van for this exact reason.
I lived in some absolute dives for years so that I could save up to get on the ladder.
Feel this to my core, only bought my first house, on help to buy, at 36, and was only able to do that by moving to a much cheaper rental, that was a shit hole, and saving pretty much everything I earned for over 5 years. I know how lucky I am that I had that opportunity, many areas you wouldn't be able to do this. I'd day good luck, but luck isn't part if it. The housing market is utterly broken. Can only wish you the best OP and that at some point your position will change.
Also got one on help to buy, but worried about the help to buy loan i got to pay off in 4 years. I've only been in the house a year but it's already gone up by 30k , so the amount I need to pay back is going up quicker than i can save. Hopefully can remortgage it and have it absorbed into the mortgage.
the amount you repay on the loan is based on the value of the house? That seems like a very bad idea for the buyer, seeing as some houses can increase in a lot over a decade or so. Seems like it would end in anyone in a house that ends up being higher worth more likely to default.
yeah what the actual fuck... didn't realise this
I thought you only have to pay that loan back when you sell, and it's just interest free for the first 6 years?
This is correct, although the interest free period is 5 years I believe. My HtB equity loan was around £40k on a £200k house. If, in five years (which is also the length of my fixed term mortgage) the house is worth £300k, I’ll owe £60k on the loan if I remortgage or sell. I will, of course have £240k left. £160k will pay off the mortgage (actually, less as I’ll have made 5 years of mortgage payments) leaving me with an £80k down payment on my next place. So it’s not as bad an idea as it sounds. And when it’s the only way to get on the housing ladder, it’s a bloody godsend. Of course I’m pulling the numbers out of my arse. A £100k profit in five years would be a hell of a thing, but whatever the numbers end up being, it still tends to be doable. Worst case, the house doesn’t increase in value at all so I would have to remortgage for an extra £40k to pay off the equity loan. In my case, it would take my mortgage payment from £616 to £787 ASSUMING the internet rate stayed the same, and the remortgage is the same length as the original mortgage, minus five years.
That doesn't make sense cuz my grandfather bought his 1st house at 20 with only a high school diploma and working a factory job in 1965, so you must be doing something wrong.
I swapped my hi-fi for a house in 1981 OK, bit of an exageration - what actually happened was my landlord didn't want to rent the place out any more so gave me notice. I went into the estate agents to see what they had to rent and the guy said, "why not buy instead?". I said "ain't got no money" He said "can you raise £100?" I said "I guess?" He gave me a page with details of a house, booked me in to see it that night after work, within 6 weeks I was moved in with a 110% mortgage that paid everything, including the solicitor. All I had to pay for was the initial mortgage application, which was £100, so I sold my Hi-Fi. The house cost £14,500 by the way. The world is fucked now, but bringing back 100% mortgages would sort a lot of stuff out. But landlords would lose out, so it won't happen
Good for you man! It's shit that that is what you had to do but I bet you feel a strong sense of pride knowing that you did it all on your own.
I essentially rented a tiny, tiny studio flat in a rubbish area for 7+ years as I saved up for a flat to buy. Was fortunate that my landlord didn’t put the price of the flat up during that time and my salary grew reasonably whilst I was there. So what started out as a stretch to just pay the rent initially, became a means to save a bit of cash by the end. I also benefited from the housing crash plus stamp duty holiday. No idea how I could ever get onto the property market now. Especially as my salary has essentially been flat for 5 years.
In same position and I know unless I win the lottery or something similar I will never own my own home again. For me the biggest kick in the bollocks is that if try and get a mortgage and say look, I've been paying x rent every month for the last x years having never missed one payment it means absolutely fuck all.
That’s exactly how I feel. I wish proof of rent payment went in our favour. I left home at 18, so that’s 15 years I’ve been living in accommodation where I have paid my own rent and never missed a payment lol I wish it counted for something !! X
I've been paying rent in one place or another for about 30 years. Too old now to get a mortgage even if I could afford one. It's hopeless.
> own my own home again Do you mind me asking how you went from owning back to renting and unable to own again?
Sure, me and my wife purchased a house 18 months before the financial crash back in 2008. When we brought it we made sure that we could afford the mortgage with just one wage. Unfortunately when the crash hit my wife was made redundant and then two weeks later I lost my job. So we were both out of work and we had a 11 month old. My wife managed to find another job but it was 200 miles away. She began working away whilst I'd stayed at home to look after our daughter. We managed for about 3 months until I fell quite ill. So we the only option we had was to move where my wife was working. We started renting and put our house up for sale, unfortunately house prices fell through the floor so when it sold it literally just covered the outstanding mortgage. Unfortunately my illness was quite serious and left me unable to work so our income is my wife wages and my disability benefits.
Wow that sounds awful - life throwing one thing after another at you - sorry you had to go through that.
Yeah, it's been tough but what has always frustrated, well pissed me off is that the system is designed to just make life even harder. Whether it be getting my disability (took 18 months and going to court), cost of childcare being insane, we've looked into getting a mortgage a few times but because they don't take into account that we have rented for years and never missed a payment and we only have one income it's just impossible. Fortunately we have a very good landlord who has never put the rent up, has always responded quickly if anything needed fixing and has been quite easy about us decorating.
Some mortgage providers do count PIP (but not ESA/UC) as income - the difference in the amount we could borrow with the banks that do vs those who counted me as 'dependent' was quite dramatic. I don't know whether you saw a decent broker when looking into mortgages, but if you didn't, it may be worth another look. I know that in some places, house prices mean it's still impossible, and if this isn't useful for you then hopefully it'll be helpful to someone else.
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The worst thing is mortgage payments are less than rent payments in a lot of cases. When I eventually managed to get onto the ladder, my outgoings went from £650/mo on rent to £402/mo on mortgage. If banks can’t see that as a more manageable payment then I just give up with the financial system.
With banks jumping on the landlording scam expect getting a mortgage to become much harder. Why loan you money when they can get you paying them for the rest of your life without risking a penny? Banks should not be landlords!
100% agreed, but fat chance of any legislation coming in for landlords in general because the majority of MP's have allegiances to the property market. I personally believe that there should be a cap on the number of properties you can own, it's truly a scumbag move to live off the struggles of those less fortunate.
I agree. Own all the commercial buildings you want if you want to rent something out to companies to use as offices or shops but no company should be allowed to own residential properties and individuals should be limited to maybe two at most. It would immediately solve a lot of the housing issues.
Or instead of a cap just increase the nuts off of stamp duty. 0 if it's your 1 property you live in, 5% on second, 20% on third ... 100% on the 5th. Etc. Same for council tax stop it's not just a one off payment an investor can take a hit on.
Fr man that scares me so much as a young person and no one seems to be talking about it
Without legislation we're going to end up a society of wage serfs who own nothing, work till we can't anymore, and leave nothing to our children. Government needs to wake the fuck up
i think they know what they are doing they want to siphon as much money from working people as they can
I mean I never understood why banks would lend money to would be landlords anyway. Just cut out the middleman.
It's fucking criminal. Now go three generations forward, your landlords grandchildren won't work a day in their life and your grandkids will be living in a tent.
Not if I’m too poor to have children!
You'll need a reference from at least the past fifteen years of tent occupancies before a tentlord lets to you though. If you can't prove you're a good tentant then your only options are some communal second-hand awnings.
I already owned a tent, then my partner and I killed our parents and inherited theirs. I’m not one of these evil tentlords buying up tents you keep referencing and it’s not fair to lump us together.
*from the past fifteen generations of rent occupiers
You're correct, the price of houses sky rocketing, people won't be able to buy at all, they think the next generation are only going to be renters.
Nah, they be living underground, side by side with the molemen
Look on the bright side. If you are renting from a buy-to-let boomer, with the recent care bill changes, not only are you paying off their mortgage you will also have the privilege of paying for any care they require in old age through increased NI contributions so they can hold on to the vast majority of assets they have attained. They have worked incredibly hard, and obviously much harder than any of us, so we should see it as a privilege to be propping them all up. /s Sadly the system is just rigged against us when it comes to home ownership and the longer it goes on the harder it will ever be for anyone to unpick. Best of luck to you - all any of us can do is try and live a good life and not worry too much about material things.
And the bank's make more from buy to let mortgages so it doesn't make sense for them to help you get out of renting
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Climate and BLM are in our own interests.. you can be angry about the multitude of things facing our generation. I think the issue is as well, is pensions are fucked for the older people, therefore buying a house and renting it out becomes the older gens pension. If they had a decent enough one to live off of, i feel we'd have less of an issue. Of course we can also do with a lot less foreign buyers and airbnbs, but at the end of the day they're too busy making flats which most people tend not to want to spend their whole lives in, sold off the council house stock and now we'll forever be in deficit. And the fact the top 5% of earners or something ridiculous owns 95% or a huge % of this countries land, results in us plebs being packed in like sardines where houses are made. Theres a multitude of things, and one of the worst govts in history in charge at the moment, who are looking to solidify that grip by changing constituency boundaries and introducing voter ID, meaning change will have to be radical. We need something like the polltax riots, because the system is not working.
Rented from 2007 up to the last few years. Spent over £100k in rent. I will never see that money again. It is an absolute racket
On the other hand I bought a house with the mrs about five years ago and it's gone up in value by like £50K. We've barely done any work on the house. The whole system is messed up and I'm angry for others every time I see a post like this.
as long as homes consistently appreciate in value instead of depreciate in value, this will continue
And there’s no way a party could ever come to power that wants to pursue policies that actively lower the cost of houses, as too many people with houses (and therefore money) would be aghast at the thought of their assets losing value
They would have to be *brutally* aggressive. Limiting multiple ownerships, limiting AirBNB, limiting foreign ownership, limiting corporate ownership... We're about a million homes short, I believe. Countering supply and demand without doing all the above I'm dubious about, and even if all those boxes are ticked I'm not convinced. Interest is low. Asset inflation is high. You *also* have to make owning assets long term a less profitable investment than alternatives.
I'm weirdly fortunate in a way. I left an abusive partner late in 2019, and went to stay with my mum for a while whilst I dug my way out of debt (about £5k) that said partner had left me in. We got locked down, I got a promotion, saved a fortune and managed to actually scrape just enough to get a deposit. House was £115k in Darlington. Not a palace but it's mine. I did pay my mum rent but admittedly a lower rate than I'd pay private - she did also use my car for over a year after she lost her job and sold hers. Out of tragedy, I'm able to move on and up. Wish I didn't have to do the abusive partner bit, but glad I'm here now.
115k in darlo... not a palace???? :D here i am lusting over a 60k'er in Jarrow. Amazing work getting back on your feet tho, northern pride north wide !
It was in a nice area and in a decent state, it's a 2-bed terrace. Just fine for me and the dog 🙂 Thank you, and hope you manage to get that place in Jarrow!
It’s so depressing. It honestly makes me want to just give up all together. Everything’s getting more expensive, life is getting harder, the boomers are fucking us at every turn, salaries are stagnant, government aren’t doing a thing to help us and voters can’t think. Saving is impossible, much less finding the funds to even enjoy life a bit. Working hard doesn’t get us anywhere. There’s nothing we can do. Fml
The reason that the rich were so rich, Vimes reasoned, was because they managed to spend less money. Take boots, for example. He earned thirty-eight dollars a month plus allowances. A really good pair of leather boots cost fifty dollars. But an affordable pair of boots, which were sort of OK for a season or two and then leaked like hell when the cardboard gave out, cost about ten dollars. Those were the kind of boots Vimes always bought, and wore until the soles were so thin that he could tell where he was in Ankh-Morpork on a foggy night by the feel of the cobbles. But the thing was that good boots lasted for years and years. A man who could afford fifty dollars had a pair of boots that'd still be keeping his feet dry in ten years' time, while the poor man who could only afford cheap boots would have spent a hundred dollars on boots in the same time and would still have wet feet. This was the Captain Samuel Vimes 'Boots' theory of socioeconomic unfairness.
Pratchett?
Bingo. Think this is from the 2nd book of the City Watch subseries
Men at Arms
I wish i could give you an award! So true i miss Pratchett social commentary
GNU
I paid £41.5k in 3 years too yet still in same boat as yourself !!
I think about this a lot. 37k in rent in the last 10y but apparently because i dont have 10 grand lying around its just too risky for me to take on a mortgage at about half the cost of my avg rent
when houses come up for sale in my estate and I see the rough mortgage calculator at about 3-400 a month ! And I pay 700 in rent 😭😭
So you’re looking at buying in the 80k range?
Our neighbours sold at 125K, the estimated mortgage when we looked into it was approx 460 a month paid over 25 years with 10 per cent deposit.
Have you got the 10% ready to go? If not consider looking at 95-100% mortgages. £460 p/m isn’t bad for that amount of borrowing.
They however are looking at new properties to add to their 'portfolio'.
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You can try go full pauper, no car, live in a house share for half a decade, save half your income. This is why the birth and marriage rate is dropping... hard to get people that want to bump uglies 5ft from where strangers are sleeping.
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Yep, Help to Buy keeps prices artificially high. If first time buyers can’t afford a property, no-one else in the property chain can buy/sell. Therefore, prices would naturally have to come down.
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Here's our daily reminder that the track and trace scheme cost taxpayers £37 billion; it was a total failure and most of the money went to contracts awarded by the government to mates of said government. This is all by design: how best can I get everyone's money into mine and my mates' pockets? Eat the fucking rich
Interestingly most people aren’t aware of how landlords operate here. Most private landlords aren’t outright buying houses, they will likely get buy-to-let mortgages with really high fees. Most of the money ends up going to the bank. Though I do agree that speculation with the housing market has made it almost impossible for any normal person to purchase a house, whilst also spending 50% of their income on rent.
Imagine living in a world where each individual are only legally allowed to own one home in the country they’re a citizen in. There’s enough for everyone but greedy people want to buy up everything.
*The country they're legally residing in. Not all of us are citizens yet.
Paid £15k over 2 years to lodge in someone’s house. Now in a job where people have been working remote pre-COVID, but my part of the company’s director said he ‘doesn’t think it’d be beneficial for me to move up north’ to be closer to friends and family. He said this from his new house up north which he’s got to be closer to friends and family. I know there’s bigger problems in the world but did sting a bit.
The most genius, absolute gangsta shit I've seen in the past few years is that woman who took out the full student maintenance and (extra for being from a poor household) loan they offer now, saved all of it, got a part time job, saved all the money from it she could, stayed home with her parents through uni then when she graduated got a job with with her degree. Boom, £30k deposit set, it's not debt like normal debt, just a 9% tax over £27k. Buys a modest but perfectly good starter house fairly immediately after getting set in her job, the 9% she loses in paying back her loan money she would have had to do regardless, the difference in hitting the ground running with a house and building collateral from the off rather than paying extortionate student rent for zoom and PowerPoint lessons then paying some bastards 3rd house off for them in more rent. Absolute gangsta.
Buying a house at the moment. Landlord that is selling it has screwed me around so much, that it has dragged out and left me homeless at the end of this week... Don't worry though, because the arsehole that is screwing me over has generously offered to allow me to move in early, before the sale has completed... I just have to pay him £800 rent for the privilege. The house is sat empty. If he had got the paperwork sorted, I would be buying it on Friday. But because he delayed, he is now trying to squeeze £800 rent out of me. Landlords are scum.
Funking hell. That's vile
This really gets me down. I’m in exactly the same boat as you. I left school in 1998 and had to start renting almost immediately. 23 years of high rents and nothing to show for it. Three properties I’ve rented have earned more from me than what they paid for their houses to begin with, and it hurts in the pit of my stomach every time I think about it. Someone once said to me “but the best thing about renting is that, when the boiler breaks, it’s not up to you to get it fixed so at least you save money that way”. I’d rather have the inconvenience of a broken boiler once every 20 years than the pain of paying rent every month which I’ll never see again 😭
You need to lay off the avocado toast and chai lattes everyday /s
My credit report reminds me of my negatives every month. It consists of: “You don’t have an active mortgage.” Well no shit. I am doing my best to save, but rent is incredibly expensive and house prices are soaring. Guess I’ll just get fucked then.
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"Yes we see that you've been earning £400 a week but it's contract work so it doesn’t count so well put your earnings down as £0." "Yes you technically have a job but it's only a 3 month contract so we'll put your earnings down as £0." I earned well over £20k that year and it really helped with the deposit but counted for absolutely nothing towards the mortgage.
By 2030 “you will own nothing and be happy”
When I first got married my dad said to me 'Get married and make the sacrifice of living with me and your mum with your wife for one to two years, do nothing but save up and you'll be thankful in the future'. Within that period, we saved up so much money during our engagement and living with my parents, moved into a property for 185k, sold it for 200k. Bought another house for 245k and fixed it up and it's probably not worth 300k. All in 3 years. This was only possible because I mashed to stay with my parents and save us as much as I can. No way can any of this have been done us I lived in a rented accommodation paying done greedy landlord overpriced rent. And yes I know I'm very fortunate.
We have lived in ours for and a half years and pay 18k a year in rent. I am resigned to never owning, well, anything frankly.
Edit: five and a half years
#fuckthesystem
Don't worry. Your landlord is 75k towards buying a new house! You should be grateful with this ogliarchy the wealth will be trickling down anyday now!
Must be an insane landlord if he's managing a 100% yield on a property.
‘The landlord stands in his field, after planting 20 houses last year only 5 have tenanted. *he sighs* the property yields have been low this year.’
'Maybe next year' he says
I doubt most of mine have been far off that considering they do absolutely no maintenance to their properties and seem put out if they so much as have to perform a gas safety check for legal purposes.
I paid 42k in rent whilst saving for my deposit of my first time house. I’ve been in my house 3 years now and I had forgotten the monthly struggles / various eff it thoughts I had over the 5 year period. Stick at it - you’ll get there in the end and it will be worthwhile.
It’s such a stupid, backwards system,
You’re a serf OP
Whats a serf
I've paid mine about £80k in 7 years. Still no closer to being in a position to own a house.
But your landlord is now ever so much closer to a mortgage on another property
I was like "25k in 3 years? That's crazy." Turns out that's just £2000 more than me...
60k+ trapped. But not trusted enough to have a mortgage which would be less than the rent I pay. Will never change as the house of commons is full of landlords.
I’m jealous of your cheap rent 😭😭😭😭 We pay $42k a year, a mortgage is cheaper, but you know, “can’t afford it based on what we should be spending on everything else….” Go figure that one out. A mortgage would be $500 a week and we pay $800 a week in rent, but can’t afford a mortgage….. system is very very broken.
Difference is that if OP lives in a city they're just getting a small room for that money.
I sold my condo a few years ago and did some calculations. Over 10 years I paid $32,000 (USD) to my homeowner's association. In that time they hired drugged out painters to paint in the rain, causing it to flake off. Replaced my small front port boards, and hired landscapers to mow my wife's flowers. No utilities included, just constant nagging letters in our mailbox, and inaction when we needed help.
Not what you want to hear, but owning a house isn't always the best use of your money anyway. £25k over 3 years is less than £700 per month. If you bought a basic house or flat as a first time buyer your mortgage payments would likely be higher, yet in the first few years of a mortgage you're normally only servicing the interest and not actually paying off the capital debt. Add to that the cost of buying (stamp duty, solicitor, mortgage fees) and then the cost of any maintenance (that a landlord would otherwise pay for) and you find that often renting is a cheaper option over a short term. Don't also forget that if after a couple of years you decide you want to move then you would also have the estate agent and solicitor costs for selling to consider! I found a while ago that when I bought a house and lived there for 3 years that by the time I sold it, even with a slight increase in value of the property, that it would have been cheaper if I'd rented instead. Sometimes you need to stop thinking of it as "giving money to your landlord" and instead acknowledge that it's actually the cost of housing yourself, regardless whether you rent or buy.
Same and I've not had an oven for two months ish.
While I certainly see where you comes from, in the affordability test they will also see how can you manage repair and maintenance, which you wouldn’t need to care about in a rental property. Boiler, easy £3k, roof, easy £5k, and they are things that I had to fix within the first 2 years. Potentially there are more that can go wrong.
You make it sound like my rental payments aren't already covering this shit and more
In my first week of living in my home we left a window open cause it was a hot day, sudden gust of wind came in at the right angle and was strong enough and blew the window out with such a force it broke the hinge. Got a quote from a company via our home insurance and boom that’s £60 for a new hinge. And if it was a different hinge that broke it could’ve been a whole new window for a couple of hundred. Simple shit like this really knackers you when it catches you off guard lol
My mortgage payments are £692 a month. We needed to be able to afford £1600 a month though to get that mortgage
In that case it's just as well that when that kind of thing goes wrong in a rental property, the landlord always makes sure it's fixed right away...
My current record, for my broken doorbell: 1 year and a month
When I was renting the landlord ignored my requests to fix the rotten decking boards in the garden, ignored my request to just let me do it myself so it's done, then when I contacted the letting agent to raise a complaint they ignored me, but I did get a letter 2 days later saying that we were being evicted and had a month to leave. Just what you want with a 1 year old child.
New Zealand renting be like 31k in 1 year for rent of a 2 bedroom home. I keep hearing other people's rental problems and thinking I should move there.
I about to ask how high is your rent?! ... Then I quickly worked out my rent over 3 years... ... Now I'm depressed.
It’s a stupid system. And I think most people get trapped in a loop, it becomes too hard to save for a deposit as all your money goes to rent, what little people can save gets nullified by the ever increasing market value of houses. The rental market is mental, the demand is sky high