A woman has shared her first time buyer journey after saving £30,000 in three years – and without the “bank of mum and dad.”
Despite being 23, Grace Sawyer has received the keys to her first home, which is a distant dream for many people in their 20s.
She and her boyfriend, Callum Jones, were left distraught when mortgage rates started to rise and thought they’d be stuck in the rental cycle forever.
But, thanks to some very savvy methods, the partnerships coordinator and recent masters graduate have managed to get a leg up on the market after saving £30,000 through using high-interest savings accounts, lifetime ISAs and premium bonds.
Now, after three years, they have finally moved into their new three-bed, one bathroom, semi-detached home, costing £220,000 – all without the “bank of mum and dad.”
“I got the keys the other day and Callum and I were ecstatic – we never would have been able to do this without the savvy savings methods used,” Grace, from Aberystwyth, Wales, told NeedToKnow.co.uk.
“I want to share these tips with other people, as it’s very difficult to get on the property ladder nowadays, especially for those our age.
“The biggest stress was the climate, as everything was so up in the air with mortgage rates, bills and the cost of living crisis.
“We sacrificed big fancy holidays and luxurious spending – but still enjoyed life through going on holidays in the UK.
“We were just sensible with budgeting and conscious of our spending and saving goals.
“Although very supportive, we didn’t feel it was right to ask our families for help or money towards our house – they have their own to pay for.
“I do have a sense of pride knowing that we have done this all by ourselves.”
Grace and Callum initially had the idea of purchasing their new property for £250,000 with a 10% deposit.
But over the past year, when they were finally ready to buy, interest rates shot up and their budget had to take a big hit.
According to The Times, The Bank of England has increased rates 14 times since December 2021.
As they didn’t want to wait any longer, they had to accept the current market and instead, found a suitable home for £220,000 – which needs a little bit of DIY.
She said: “When I originally saw the property online, the fact that the toilet was in a separate room to the sink and bath was a big no go.
“But then, I widened my opinions and fell in love with the property, as it’s in such a great location and is of brilliant size.
“We haven’t started decorating just yet, but we’re hoping to create a more modern style, without taking away any of the homeliness.
“The garden needs a lot of work to be secure and safe and the paint needs updating in some places.
“It doesn’t need a lot of work to be up to standard, but does need quite a bit to be up to our taste.
“After fees, the rest of the money saved is being spent on these renovations, including a big rewire of the property.”
Now, they are hoping to not only add value to their property through DIY over the next few years, but also build a home for themselves without any stress.
Her advice? Research into the best savings accounts to make the most of your money.
Grace added: “Make the most of your lifetime ISAs, as we got £4,810.70 of ‘free’ money for saving in it for the past three years.
“Also, utilise high-interest savings accounts and save regularly.
“Setting up a direct bank transfer is so helpful in making sure your savings stay as savings.
“If you need a little help from mum and dad, then that’s completely fine and shouldn’t be frowned upon – but it does give a great sense of independence doing this alone.”
