Jordon Thompson, 31, and partner Cormac O’Donnell, 30, become homeowners in 2020 when they buy a brand new apartment in Hounslow
Image: Jordon Thompson)
A Londoner shared how he was able to buy his first home in the city with his partner at the age of 30, after saving up nearly half his life.
Jordon Thompson, 31, and his partner Cormac O’Donnell, 30, become homeowners in 2020 when they buy a brand new apartment in Hounslow .
The couple had to put together £22,500 between themselves for their 5% deposit and use the government’s Help to Buy scheme to get an edge on the cash they needed.
Despite suggestions from Places, Places star Kirstie Allsopp that young people might find it easier to buy a home if they “just need to move somewhere cheaper”, the couple believe London is the place for them and don’t want to consider leaving the city.
And with Jordon already starting to save as a teenager, he already had quite a bit of savings by the time he started thinking about owning a home.
“It started when I was 16,” says Jordon My London his savings to buy a house.
“My father had a financial advisor who would come in to help with finances and accounts, and after their meeting I asked, ‘Who is he? What is it about? Should I open one of those savings accounts? “
Jordon grew up in Canada.
“I started it, and my parents contributed a small amount to it when I was in school,” says Jordon.
“I started putting about 10% of my weekly earnings into it, and I signed up for it automatically so it only takes a certain amount out of my account each month.
“When I moved to the UK in 2016, I opened the Help to Buy ISA and started contributing to it, so I had my savings in Canada and the ISA here.”
The Help to Buy ISA is a scheme in which the government adds 25% of any savings in your ISA (up to £3,000) when you buy your first home. It is available on homes with a purchase price of up to £250,000 or £450,000 in London.
Applications for the program are now closed, but those who already have an open ISA can claim a 25% bonus through November 2030.
There is also a New Purchase Assistance loan, for which first-time buyers need at least 5% of the sale price of their newly built apartment or home as a down payment.
The government lends you up to 20% – or 40% if you live in London – on concessional rates, subject to regional limits. In London, the area limit is £600,000.
Then you borrow the rest from a mortgage company and an equity loan from the government that charges no interest for five years.
Jordon says the Help to Buy plan has been a huge help to him and Cormac, but most of his deposit comes from savings he’s amassed since he was a teenager.
By October 2020, Jordon and Cormac had saved up enough down payment for their first home. Jordon says he’s a bit affected by the Canadian Dollar to GBP exchange rate, but he’s pleased the deposit didn’t use up his savings.
He is really pleased to have that buffer – helped too, with the £3,000 he received from the Help to Buy ISA – as he needs to buy furniture and decor for his new apartment .
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Jordon and Cormac now pay around £800 a month on their mortgage payments on their new two-bedroom flat in Barratt London Hounslow’s development, the High Quarter, is just over half what they paid for their previous one-bedroom home.
While housing outside London is certainly cheaper, leaving the city is not something Jordon and Cormac want to consider. Jordon works as a clinical audiologist on Harley Street, while Cormac works as a SEND teacher at a school 20 minutes’ walk from where they live.
“Things could be cheaper, but not much cheaper, outside of London,” says Jordon. “And the cost of public transport in the UK is sky-high.
“You have to pay a lot of money for public transport. So any savings are offset by that, and even if you save, I don’t know, 15% [buying outside of London]you also have to pay for that by the cost of travel time. “
Jordon says he loves having a home to call their own, with extra space for family and friends visiting from Canada or Ireland, and also knows he has a property he’s invested in.
“It’s great to have our own space, to do what we want with it,” he says, “We just started painting the walls, and it’s great not having to think about repainting it white when we hand it over. . ”
For others looking to climb the housing ladder, Jordon suggests “ignoring baby boomers like: ‘Stop eating avocado toast’.
“But try to be more money conscious where you can, really asking if certain habits are beneficial or help you achieve the money goals and milestones you want to achieve,” he says. or not”.
Jordon also says that having a financial advisor is “very helpful,” and that it’s important to shop for the best financial products in terms of interest rates and promotions.
He makes sure to pay off his high-interest debt first, makes sure to use balance transfers for credit cards to pay as little interest as possible, and also makes sure he’s ‘self-paying’ on the day of his claim. salary – put aside the savings that cannot be obtained. touched on when he received his paycheck to make sure he wasn’t overspending.
“Don’t be afraid to move a little further – there are some lovely places in Zones 4 and 5 in London that anyone can take advantage of,” he added.
https://www.mirror.co.uk/news/uk-news/i-bought-first-home-age-26271514 'I bought my first house at the age of 30 after saving for almost half of my life'