PROPERTY GLADDER
Young couple bought £220k home before turning 21 – and they did it WITHOUT the bank of mum and dad
A YOUNG couple lived on a diet of beans and noodles while they saved to buy their first home, all before they turned 21.
Nathan Doe, 21, and Tyla Stanworth, 20, from Newport, bought their £220,000 three-bedroom home together last June without dipping into the bank of mum and dad.
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It took them a year to save for the deposit, which they did by not partying and drinking, and moved in with their parents.
"We were living with my dad for a year, that was our base, but obviously had to pay him rent," Nathan, said. "We really don’t drink and don’t go out partying.
"Deciding to buy the house did mean that we had to make sacrifices as the majority of our combined wages went straight into the savings," Tyla, said.
"We never went out, our shopping lists consisted of noodles and beans, but in the long run it was so worth it."
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Tyla and Nathan have been working full-time since they finished school but both enrolled in apprenticeship programmes which allowed them access to their preferred career paths.
Nathan now works as a train planning and diagramming specialist for Arriva Trains Wales and Tyla works in the facilities and finance team at Qualifications Wales.
While they were busy saving for their new-build home, their combined income was around £30,000 a year.
The couple are aiming to be completely mortgage-free by the time they are 40 and hope to retire by 55.
What help is out there for first-time buyers?
GETTING on the property ladder can feel like a grim task but there are schemes out there to help first-time buyers own their own home.
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 - Another government scheme that gives anyone aged 18 and 39 the chance to save tax-free and get a bonus of up to £32,000 towards your 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 to be 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 .
Nathan said they saved their £11,500 deposit by putting money into a Help To Buy ISA. But after stamp duty and other costs Nathan said they spent something in the region of £25,000.
They also benefited from a help to buy equity loan – a five-year interest free loan which paid for 20 per cent of the cost of the house.
Tyla said: "It was a goal we wanted to achieve pretty much as soon as we got together – Nathan already had a help to buy ISA set up and then I set one up myself.
"We put in £200 each month and got £50 back from the Government so we were getting a free £100 a month."
The couple hope to pay off their loan before the interest-free period is up but believe the house has also increased in value by about £20,000 since they purchased it last June.
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"That should mean after five years of owning our house, at the age of 25, we should have at least £80,000 of equity," Tyla said.
Now in their full-time career roles the pair are bringing in a combined household income of around £50,000 a year and are busy planning their wedding in September.
The £10,000 cost of that will also be paid for out of their own pockets.
Nathan said: “I think the biggest thing is if you want something enough and you are prepared to make sacrifices for it anything is possible.
"We want to go on big holidays and travel the world but at the end of the day there’s nothing better than going home to your house and it’s yours."
LATEST ON HOUSE PRICES
Moving home with mum and dad might be a necessity now that first time buyers will have to fork out nearly £50,000 for a deposit on a mortgage if they want to own their first home.
Plus the average age of when people are likely to become homeowners in England has also risen to 33 from 30 a decade ago.
One London lad bought a £135,000 three-bed house with his girlfriend at just 18 - but he made one big sacrifice.
While banks are starting to offer alternatives, such as "no deposit" mortgages to customers in order to help them get on the property ladder.
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