How I went from renting to homeowner with no money (No help to buy-literally)

I made it! :)

It has now been 7 months since i’ve moved into my new home and BOY OH BOY has the time flown from what I thought was a whole eternity from getting my offer accepted. 

 My experience of the home buying process was frustrating, long, tedious and BLOODY HARD, sorry I can’t lie to you.

Here are a few things that helped me get through and can hopefully inspire you.

When I started this process, I had no deposit, I never knew I could afford to get onto the property ladder. If I can do it, you can to.

Last year I was renting a studio apartment in London paying. Rent was £795PCM + £75 council tax, electricity for the matchbox apartment cost nearly £100. The pressure was just getting worser. lol!

Anyway, here are some tips that helped me get on the property ladder. 

1. Get friends that encourage you, that have preferably done the journey 

The blind leading the blind is a hard no on this one. You need to get people around you that inspire you and care about your life goals and want you to win. I’m not saying ditch all your friends who don’t share your life goals, but on this one, you need someone who is on the same wavelength or preferably done the journey.  

I had a good friend that championed me and spoke to my potential rather that my current situation at the time. 2 years prior she challenged me and said it is possible for me to buy my own home, but I looked at her and laughed and thought this was not possible. Nevertheless, she put me in touch with a broker, I sat down with him and he told me that going into my unarranged overdraft every month is not helping you sis. 

2 years after that initial meeting, I fixed up my credit, therefore I was in a much better position, I wasn’t being charged late fees and I had a firm grip on my spending habits. She gave me the number to another mortgage broker which expedited my journey to becoming a homeowner.   

2. Make sure you get a good broker 

Helpful tips 

• To save time make sure that you have at least 6 months of payslips scanned, address history for the past 3 years 

• The amount of money that the bank will offer you is 4x your salary. 

• Make sure you set aside £300-£500 for a good broker 

Now at this point I still had no deposit, but I was determined and a lot more hopeful.   

A good broker will take all your financial commitments into consideration as well as lifestyle habits so that they can find you a good mortgage rate that gives you change to spend on the things that matter to you after you pay those monthly mortgage instalments. 

 3.Agreement in Principle  

Do not do what I did 

• View properties before you get the AIP -I was viewing and putting in offers for properties that were way above my pay grade. It will save you time and embarrassment. Trust me lol! 

Once the Mortgage broker runs your credit through their database and you get the green light, Hooray!!! You finally have an official agreement in principle which is valid for 3 months.  

I was lucky enough to get a 5% deposit mortgage which gave me a more attainable goal to save towards. 

With your AIP estate agents will see you are a serious buyer and it will be a lot easier to view properties as they will see you as a serious buyer. 

4. Research, Research, Research 

Helpful tips  

• Expect to be outbid for a property you love  

• Put in your best offer if it’s the home you want (If you are trying to barter, 9 times out of 10 someone else will outbid you, especially in this climate) 

• YouTube property experts that helped me along this journey are:  

• DM Mortgages 

• Alexkerrmortgage 

• Please do your own further research 

• You need time to view properties especially if you’re relocating outside of London. 

My budget couldn’t afford to completely own a London home, so Kent was my next best option which provides me easy access into London.  

Now, my advice when you’re putting in an offer for the home that you can really see yourself in. Give the best offer you can. Don’t try and barter unless you know what you’re doing otherwise someone else will pay the price that you are not willing to. 

5. How are you going to raise those funds? 

Helpful tips  

• It’s important to not that the process from receiving your AIP to you getting the keys can take at best 3 months or in my case (worst case) a year. 

• If you are raising the money from scratch set a plan with an end date of what you want to achieve financially  

• You must be disciplined  

• Get a side hustle if our day job isn’t enough 

So, you have your AIP, you are booking home viewings with agents, you have a figure of what you need to save for a deposit. 

Now, if you are anything like me; you like eating out, you splurge occasionally, now is not the time for this. 

I had a good group of friends who understood the assignment and didn’t entice me to spend more than what I needed too. Perks of being the life and soul of the party is that your mates will do whatever possible to make sure you don’t miss out. At least mine did.  

I hope you enjoyed reading this! Please support my blog by leaving a comment and sharing it. 

Yas xox 

I did it!!