Single woman who sofa-surfed to save up for deposit to buy £148k one bed flat in Cheltenham
Tanya Pyrka, a 26-year-old who works in marketing, scrimped and saved every penny to buy her flat in Cheltenham for £147,500
WHOEVER says you've got to be loved up in order to get on the property ladder is wrong - as Tanya Pyrka is living proof of that.
The marketing guru, 26, bought her one-bed flat in Cheltenham for just under £150,000 two years ago, but she sofa surfed with friends while she was scraping together the deposit.
Single first-time buyers face saving for over a DECADE for a 15 per cent deposit, and up to 17 years for Londoners.
So it's no wonder that around of third of Brits (31 per cent) reckon the only way they'll be able to afford to do it is with a partner and or after getting married, according to Skipton Building Society survey.
We caught up with Tanya as part of our My First Home series where we get all of the gossip on what it takes to get the keys to your own place.
What's your home like and how much did you have to pay for it?
I've got a one bedroom flat in a grade II listed building in Cheltenham.
I got the keys in March 2016 and paid £147,500, even though it was on the market for £150,000.
What size deposit did you pay and what mortgage did you get?
I put down £14,500 and borrowed £133,000 on a two-year fixed-rate deal at 2.64 per cent interest with Nationwide.
In March this year I remortgaged to another two-year fix with Nationwide at a much cheaper rate of 1.34 per cent which has saved me £80 a month.
So now I pay £470 a month for my mortgage.
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How did you afford to buy a home?
I saved hard for a deposit over about five years in total. I had about £3,000 saved after university from weekend and summer jobs.
I lived at home with my parents - while working - to avoid paying rent. When I did internships in London I managed to sofa surf, again to avoid paying any rent.
I cut down on buying clothes, nights out and expensive coffees to make sure I could stash away as much as possible.
I did dog walking for about £10 an hour, and any other cash-in-hand jobs even when I had a full-time job - to get as much coming in as I could.
It wasn’t easy living at home at times, but it's so worth it to be able to get on the property ladder. It’s impossible to save a decent deposit when you’re forking out
for rent.
The amount I managed to save each month varied. My main aim was always around £1000 but sometimes unexpected payments or birthdays would crop up.
I remember I once only managed to save around £600 one month and the guilt was unreal. Even at times I would purposely put myself into my overdraft - which was free for graduates - just to stop me spending any money.
My best tip when saving is to print out your bank statement each month and highlight the things you can stop spending on - that’s why I cut out coffees.
I couldn’t believe how much I used to spend on them. I managed to get £25,000 together in the end which I was so happy about.
What are Tanya's top tips for saving for a deposit?
TANYA managed to get on the property ladder when she was 24 but she did some serious saving. Here are her tips on getting the funds together:
Move home with mum and dad - Not having to pay the going rate for rent meant that Tanya could tuck some of her wages away. "it wasn't easy," she said, " but it's so worth it."
Sofa surf - Going a short term internship far away from home? Ask to stay with a friend to save you paying rent on your own place.
Cut down on spending - It might seem obvious but the money Tanya wasn't spending on clothes, night out and expensive coffees she put away into her savings account.
Cash-in-hand jobs - “There is so much you can do to earn a little extra cash," she says. "I did lots of dog walking charging £10 per dog for an hour long walk. I did as much babysitting as I could for a tenner an hour. This also is a great way of keeping you out of the pub. I also used to eBay for friends and family. Not many people can be bothered to put their things on eBay, so I’d offer them £20 to get their items on as long as I thought I could make a profit.”
Why didn't you use the Help to Buy scheme?
I found out about Help to Buy way too late to get involved with it. Plus I really wanted a period property where I could work on and add value.
With Help to Buy being for new-builds only, it wasn’t for me.
Were there any issues getting a mortgage?
Yes! I wanted to get a mortgage in principle to show estate agents I was a serious buyer.
I saw several high street lenders, including Nationwide, who all said I failed the affordability test for the amount I wanted to borrow.
None of them suggested I went to see a broker for help but luckily a friend put me in touch with hers.
The broker managed to get me a loan approved from Nationwide in the end – even after they had already rejected me.
They helped me to prove that my income and savings did meet their criteria. I paid broker fees of £200 which was so worth it.
How did you find the property?
I actually drove past it on the way to another viewing. As soon as I got an appointment and walked inside I knew it was for me.
Lots of properties I saw were so poky and dark. My flat is light and airy which I love, plus I can walk into town which makes life easy.
I had to enter a bidding war with another buyer but I still got it for less than asking price. I won because I bid £500 more than the other person.
How did you feel when you completed?
It felt surreal actually. All that money spent, and you’re handed a set of keys and waved off.
The first thing I did was go and buy a Stanley knife so I could take up all the carpets which were just awful.
I also took off some dingy fire doors and bought some old oak ones which I had to put on their sides to resize. I don’t mind a bit of DIY.
How did you afford the furniture?
I barely have any new stuff. My parents gave me a bed and I bought a second hand headboard and some material to recover it.
I blagged a table and chairs from friends who were about to throw them out and got a sofa from someone selling one on Facebook.
It’s quirky but not particularly comfortable. Instead of buying artwork or prints to hang on the walls I bought cheap blank canvasses and painted my own designs.
For accessories like cushions I go to the sales in places like HomeSense.
Did the place need much work?
Yes, plenty. I am currently in the middle of putting in a new bathroom. I’ve had the bath taken out and a walk-in shower installed and all I have left to do is to box in all the pipes now.
I bought a new kitchen from Ikea in the sale and I also painted the whole place.
The sash windows really need doing but they will have to wait - they’re so expensive to fix.
I’m ploughing every spare bit of cash into getting the place just right. So even now I’m still watching my bank balance. But instead of going to the pub I get mates round and have a bottle of wine – that’s much cheaper.
What was the hardest part about buying a house?
The cost. Buying a house really is a massive learning curve. I had no idea about the true costs such as stamp duty and service charges that come with leasehold
flats. But I was lucky to be able to live at home and save.
I’ve also found lots of ways to keep money coming in to help pay for on-going renovations. I rent out my parking space and park my car a few streets away where there’s free parking. I get about £100 a month from that.
I sell lots of stuff on Gumtree - including the doors I ripped out when I moved in and some old radiators. People will buy anything.
When do you think you’ll move again?
I have no idea and the flat isn’t finished yet. When it is I would only want to sell when the market is strong - it's in a funny place right now.
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 to 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 .
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