FIRST-TIME buyer Paul managed to knock £55,000 of the cost of his £184,950 first home – and he didn’t even need to haggle.
Buying your first home is an expensive business, and many people often feel that getting a foot on the property ladder simply isn’t possible.
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But there are government schemes to help savers desperate for a place of their own.
Supermarket manager Paul Cartwright, 38 used the First Homes Scheme to buy his two-bedroom semi-detached home in Coningsby, Lincolnshire.
First-time buyers can bag a home with a discount of up to 50% using this government scheme.
Paul managed to get a 30% discount worth £55,000 on his first home.
The home’s discount will stay with the property forever, which means you must give them the same percentage discount that you got, based on the property’s value at the time of sale.
For example, if your house was on the market for £100,000 with a 30% discount, you would £70,000 from the sale.
You can only sell on your property to someone who is also eligible to use the First Homes scheme.
To access the scheme, you will need to have a deposit worth at least 5% of the discounted purchase price and earn less than £80,000 a year or £90,000 in London.
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Local councils may also add further rules such as a local connection or reserving the properties for key workers only.
First Homes is usually offered on a small number of properties within new developments, so you will need to look for local builders advertising the scheme and apply through them.
If you don’t know who your local council is, you can find it using this handy tool.
Paul tucked away £150 a month for five years and kept a close eye on his outgoings to afford his £7,500 deposit.
He was also lucky enough to get between £3,000 and £4,000 worth of furniture gifted to him by friends and family to kit out his new pad.
Paul finally got the keys to his new home on December 2, 2022.
We sat down with Paul to chat through how he went from saver to homeowner for The Sun’s My First Home series.
Tell me about your home
It’s a two-bedroom semi-detached new build house in Coningsby, Lincolnshire.
I have an open-plan living room and dining room, and a separate kitchen.
There’s also a separate living room and utility room.
Upstairs, there’s two double bedrooms and a bathroom.
I have a back garden and a large driveway.
How did you decide on location?
I was previously renting a flat in Boston, Lincolnshire, when a friend who works for Chestnut Homes told me about the development.
I’m a store manager for Lincolnshire Co-op and I often move around to different stores as part of my job.
Coninsby with good transport links so I can get to anywhere relatively quickly and I’m also only around 12 miles from family.
How much was it?
I bought my house through the First Homes Scheme.
It allows buyers in England to buy their first home with a discount of up to 50%.
My house was on the market for £184,950 and I got a 30% discount of £55,485.
I put down a 5% deposit of around £7,500.
I took out a mortgage of around £121,965 over five years, with a fixed rate of 2.58%.
My mortgage repayments are just over £500 a month.
Why did you chose to use the First Homes Scheme?
I wouldn’t have been in a position to buy my first home if it wasn’t for the scheme.
It meant that I could put down a small deposit of £7,500, which seemed a lot more achievable.
If I was to buy somewhere without the scheme, I would have needed to save for a few more years or rethink my finances and put away more money a month.
Of course, the scheme might not work for everyone because it’s only applicable to new builds – but it worked for me.
It appealed to me more than other schemes like the Help to Buy equity loan scheme.
This is because you have to start paying it back after five years with added interest, and I didn’t like the idea taking on another loan.
How did you save for it?
I first started saving around five years ago with the goal of buying a house.
There was no particular rush for me to move out, and saving over a longer period of time meant I could comfortably save little and often.
I’m also fortunate enough to be in a good job, earning a manager’s salary so my saving target was affordable for me.
I set up a standing order of £150 to go out of my current and into my savings account on the same day I was paid.
This meant there was less temptation to spend the cash because I never really saw it reach my account but it was stashed away.
I also lived at home with my mum for three years, paying her around £100 a month in rent and £100 in cash to cover food bills.
My total monthly outgoings during this period were around £660 – including a £250 car loan, £54 phone bill, £30 internet bill, £39 car insurance and £300 on fuel to work.
I always made sure that I made my loan repayments on time and in full, because I knew this could have negative consequences for my credit score if not.
Two years ago, I moved out and rented a one-bedroom flat which cost me £485 a month, including bills.
I was just lucky to get a good deal and a great landlord and it meant I could still comfortably put away £150 a month.
How did you afford to furnish it?
I was lucky enough to be gifted a lot of my furniture from my mum.
She had downsized not long before I moved into my house and she kept a lot of stuff in storage for me.
I also got a sofa for free from a friend.
This meant I only had to for out for a dining table and chairs and a bed, which came to just under £1,000.
Overall, I think I saved between £3,000 and £4,000 on furniture.
What advice would you give to other first-time buyers?
The best thing you can do is look into what government schemes you are eligible for.
I was also really lucky to receive the furniture from my mum, so don’t worry about asking for help.
Just be sensible with your targets and make sure you have an achievable goal.
Another family used the snowball method to clear £26,000 worth of debt and buy their first home.
One savvy saver managed to put half of his wages away while still renting to buy his first home.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected]
