A young couple have managed to buy their first home for £235K just a year after graduating – even though they had no savings to begin with.
Beth Sharpe, 24 from Newbury, Berkshire and her partner Ed Rawcliffe, 23, decided to move in with her mother Wendy for a year so they could maximise their saving potential.
The couple planned to stay for two years, but after just 12 months they had managed to put together a nest egg of £13,500.
Between them they earned £3,500 after tax and after paying her mother £250 a month rent, they put away £1-£2,000, which they maximised by using a Help To Buy ISA.
Then, thanks to a gift of £10,000 from Ben’s father the couple – who both work in sales – were able to put down a ten per cent deposit on a two bed semi-detached home in Newbury after a year, while still maintaining a social life.
Beth told The Sun that they still went on nights out with friends and even managed to treat themselves to a few holidays.
Beth Sharpe, 24 from Newbury and her partner Ed Rawcliffe, 23,were able to put down a ten per cent deposit on their first home, a year after graduating
After graduation the couple found jobs in sales and managed to save £2,000 a month after moving in with Beth’s mother
‘Don’t make too many sacrifices and don’t stop doing the stuff you love because otherwise you get miserable,’ she said.
‘Moving home with your parents it sacrifice enough.
However, she admits that anyone considering the move back home should be prepared for some downsides.
‘It was only the three of us living there and we do get on really well, but sometimes it was tough,’ she said.
The couple maximised their monthly savings by using a Help To Buy ISA
‘And my mum did pester us sometimes about the cleaning but we’re so grateful that she let us stay.
According to research by Santander, more than a third of first-time buyers are ‘boomerangers’ who move in with their parents for two years to save for a deposit.
A further 15 per cent are willing to stay up to five years to save more.
Beth and Ed still enjoyed nights out and several holidays while saving, and said it’s important to have a balance