FIRST-TIME buyers Heather and Ed saved up the £13,000 they needed to buy their first home by switching from Asda to Aldi and ditching holidays abroad.
Heather Townend, aged 33, and Ed Gledhill, aged 32, bought their two-bed terraced house in Golcar, a village just outside Huddersfield in Yorkshire, in May last year.
The property cost £110,000 and the couple were able to knock down the asking price from £120,000.
They've spent the last 18 months painting it, decorating it, and filling it with furniture – all while planning for their wedding next May – and the birth of a baby (due mid-November).
In total, it took the couple around 19 months to save the £13,000 they had set themselves as a target to buy their first home.
They achieved this by switching to budget supermarket Aldi, cutting out big holidays, and making savings on rent by moving back in with Ed’s parents.
This meant Heather, who works in insurance, and Ed, who works as a senior sales executive, were able to stump up a 10 per cent deposit of £11,000.
They then got a mortgage for the remaining £99,000, which left them with £2,000 to cover their solicitor fees, surveyor fees, and other moving costs.
We chatted to Heather and Ed as part of our My First Home series to get the inside track from them on what it takes to get a foot on the first rung of the property ladder.
We also got them to share their tips on how you can do it too.
What’s your house like and how much did you pay for it?
We have bought a two-bed terraced house with a front and back garden.
Downstairs, there’s a little hallway, front room and kitchen/ dining room leading out on to the back garden.
There’s also a small utility room which houses our washing machine.
Upstairs there’s a bathroom, large front bedroom, and smaller back bedroom (which will soon become the baby’s room).
The property was initially on the market for £120,000, but as we were on a tight budget, we first offered just £115,000.
When this got rejected, we upped our offer to £117,000 but this got rejected as well.
At this point, we decided to look elsewhere, as the property only had two bedrooms – and we didn’t want to go much higher for a place with just two rooms, as ideally we’d hoped to get a house with three.
Just a few weeks later, we found out the seller had dropped the price to £115,000 – as by that time, she had found a place she wanted to buy and needed to sell relatively quickly.
That’s when we made an offer at £110,000, and this got accepted.
Did it take long to find the right place?
This house was one of the first properties we saw. We actually went on to see around 40 places in total, but kept coming back to this one.
As we knew we wanted to start a family, the aim was to find a home where we could bring up a child.
This house felt the right size for us and we liked the fact it didn’t need too much work – apart from painting and decorating – meaning we could just move in and start living there.
We also liked the fact the local schools have great reviews.
How did you save for your house?
When Ed and I first got together, I was renting a place and Ed was living with his parents.
We then moved in and rented together for a year – in Golcar.
But we soon realised that we would be able to save much more quickly by moving back in with Ed’s parents and saving on rent, so we did this for two years when I was aged 31 and Ed was aged 30.
I think this was harder for me than for Ed, as he’d only lived independently for a year – whereas I hadn’t lived with my parents since I was aged 19.
On the plus side, Ed’s parents live in quite a big house which meant we weren’t too much on top of one another.
During these two years, Ed and I contributed around £100 a month between us towards bills, and then paid for our own food and everyday living costs on top.
We did make quite a few sacrifices, such as not going out very much, and putting my annual bonus straight into our house fund, rather than using it to go on holiday – though we did manage to treat ourselves to the odd weekend away.
We also changed our shopping habits, and swapped shopping at Asda for shopping at Aldi, which reduced our shopping bill from around £90 a week to nearer £40.
We had a plan to put £1,000 between us into a savings account each month – with the aim of reaching our target of £13,000 in just over a year.
But seven months in, I managed to write off the car which set us back quite a bit.
We didn’t want to buy a car on finance, so ended up paying £3,500 for a new car – and this took quite a big chunk out of our savings.
After this expense, it took us around 19 months in total to get to our target of having £13,000 slotted away.
What size deposit did you pay and what mortgage did you get?
We paid a 10 per cent deposit of £11,000, and then took out a 90 per cent mortgage for the remaining £99,000 – over a 25-year term.
We are currently on a two-year fixed-term deal with Coventry Building Society at 2.9 per cent over 25 years, and need to remortgage again in May 2019.
How did you feel when you completed?
When we finally completed, we were just so happy it was all finished.
But at the same time, we were scared, as this meant we were officially homeowners – and officially grown-ups.
On top of all that, Ed then proposed on our first day in the house – so it was a very exciting and very emotional time all round for both of us.
Heather and Ed's top tips for first-time buyers
- Be prepared to make compromises. If you’re buying with a partner, make sure you agree on the key aspects of the property, but have areas where you are prepared to be flexible. I had always wanted a separate dining room, but as this would have pushed us over budget, I was willing to compromise on this. I settled for a kitchen with space for a dining table – as this meant we could get the house we both loved
- Once you’ve moved into your home, you need to go on being careful with your money. This means looking for deals and discounts, and using websites such as TopCashback to get cashback on purchases. Since moving in, we’ve tried to save money wherever we can.
How did you afford the furniture?
We had quite a bit of furniture from the year we had spent renting together, including a three-piece suite, which we’d put in storage, and a double bed, which we took to Ed’s parents’ house.
Our plan was then to buy a few extra items each month once we’d moved in – and decorate the rest of the house bit by bit – as and when we could afford it.
However, my nana sadly died just before we bought the house and left us some money.
This meant we were able to buy some new furniture – including wardrobes, bedside tables and a bed for the spare room – more quickly than we’d first anticipated.
We also used some of the inheritance money to start the painting and decorating.
That said, we are still on a tight budget, and are always looking for ways to make savings.
We were able to get a discount on our fridge freezer and washing machine through Ed’s work, as he works for a firm which sells appliances. This has meant savings of around £325.
In addition, we used TopCashback when paying for things such as insurance and utility bills – and when buying stuff from eBay.
We recently got £70 cashback when buying a £160 home insurance policy from Admiral via TopCashback. Savings like this have made a real difference.
Ikea has also been a complete godsend.
Were there any issues?
We paid £400 to get a HomeBuyer Report, and the only major issue this survey really picked up was the fact the circuit board was outdated and was going to need to be replaced.
There was no mention of any issues with the boiler, yet the boiler broke down in November, around seven months after moving in.
A local boiler engineer said we could pay £200 to get it repaired, but that we risked further repair bills.
At this point, we decided to bite the bullet and buy a new boiler, as this seemed to make better financial sense in the long run.
But this was a bit of a shock payment so soon after moving in, and wasn’t something we’d budgeted for, so we had to pay for this on credit.
We took out a credit card with First Direct offering 0 per cent on purchases for 17 months. This deal meant we weren’t paying more than we had to on our borrowing.
More recently, we had an issue with water leaking through our ceiling into our kitchen from the bath.
But fortunately, we only had to pay around £150 for a new seal on the plug. We’d been worried this was going to be another major bill.
What’s the area like?
Our village is quite rural with lots of fields and farm shops dotted around, but it’s also not too far from local amenities such as shops and pubs.
We live around 20 miles from the centre of Huddersfield – and close to one of the main bus routes into town. We both work in Huddersfield, so both have commutes of less than 25 minutes.
As Ed grew up in the neighbouring village to Golcar, we already knew lots of people here, so it feels pretty welcoming.
Are you looking to move any time soon?
We plan on staying put for at least five years.
That will give us time to build up some equity, and then maybe look to buy something bigger a bit further down the line – so we can then think about extending the family again.
What help is out there for first-time buyers?
Help to Buy Isa – It's a tax-free savings account where for every £200 you save, the Government will add an extra £50. But there's a maximum limit of £3,000 which is paid to your solicitor when you move.
Help to Buy equity loan – The Government will lend you up to 20 per cent of the home's value – or 40 per cent in London – after you've put down a five per cent deposit. The loan is on top of a normal mortgage but it can only be used to buy a new build property.
Lifetime Isa – This is another Government scheme that gives anyone aged 18 to 39 the chance to save tax-free and get a bonus of up to £32,000 towards their first home. You can save up to £4,000 a year and the Government will add 25 per cent on top.
Shared ownership – Co-owning with a housing association means you can buy a part of the property and pay rent on the remaining amount. You can buy anything from 25 to 75 per cent of the property but you're restricted to specific ones.
"First dibs" in London – London Mayor Sadiq Khan is working on a scheme that will restrict sales of all new-build homes in the capital up to £350,000 to UK buyers for three months before any overseas marketing can take place.
Starter Home Initiative – A Government scheme that will see 200,000 new-build homes in England sold to first-time buyers with a 20 per cent discount by 2020. To receive updates on the progress of these homes you can register your interest on the Starter Homes website.
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