I'd quite like to buy a flat with my girlfriend, but it's (almost) literally impossible (GROWN UP AND BORING CENTRIC)
Having watched house and flat prices soar now for about 15 years, I kinda always suspected they'd have to come down again at some point. And indeed they have of late. Yet STILL it's practically a dream for a first time buyer.
Having had a chat with a financial advisor, we've got a few options on the table but despite having saved up a fair old deposit and having a good combined income, we would get stung hard for even DARING to think we could get a mortgage. We also have no debt or loans (barring my student loan, over 1/2 paid off anyhow).
So whats the deal? Banks are charging interest on mortgages at about 5.74% (still grossly above the Bank of England's rate) IF you have a 15% deposit, but a 15% deposit in London is colossal and gets bigger obviously the nicer place you look at. We do just about have that amount if we were to buy a 1 bedroom place in a high rise in Zone 6 admittedly, but for anything else we only have a 10% deposit and the interest rate goes up by a good 1 or 2%, and therefore our monthly repayments spiral upwards by around £500 per month, despite the price of the property being comfortably within the '4x combined income' ratio.
Whats the answer? keep saving, and pray prices don't go up any further? Get on the ladder somewhere grim and endure a pretty dull existence to 'take that first step'? We also no longer qualify for many of the part buy / part rent schemes or civil service programmes due to our combined income being a shade over the threshold.
I know our predicament is better than most and we at least have savings / employment, but if people with stable ok paying jobs, no debt, good credit ratings and a fairly healthy wad of cash behind them can't get a place, then what's the answer?