Like many first-time buyers, Sarah Foster and Graham Cudbertson scrimped and saved to gather enough money for a deposit.
Weve practically been living on baked beans for the last couple of years, says Graham, a 28-year-old marine information officer. But weve put away enough for a deposit on our first home.
In fact Graham and his fiancée Sarah, 30, saved £15,500, and the couple have just bought a three-bedroom house in Leven, east Yorkshire, which cost them £155,000.
The property is more expensive than most first homes £128,842 is the UK average according to Nationwide, but less than the couple would have to fork out in London, where first-time buyers spend as much as £211,345, says the building society.
Nearly half of all first-time buyers save over £13,000 for their deposit, according to Abbey, which means Sarahs and Grahams years of saving have stood them in good stead.
Abbeys chief economist, Barry Naisbitt, says: The first thing any young people thinking of buying should try to do is save up as big a deposit as possible. As most first-time buyers cannot rely on handouts, they have to save up in the traditional way, although more than a third save jointly with a partner or friend.
Sarah and Graham initially tried to buy a property in 2003. With only six days to go until exchange of contracts, the vendor unexpectedly pulled out of the deal.
We couldnt believe it, says Graham. To be honest, the experience knocked our confidence and set us back, as we lost a few hundred pounds in legal and survey fees.
Fortunately, the couple happened upon a new-build home, in the village they wanted to buy in, so put their names down for a home in July 2005.
We only saw the first phase of the development, explains Sarah, an accountant: But we loved the houses, so we bought one of the next phases, off-plan. We got a fantastic deal, with a larger than usual plot size. Its a spacious three-bed semi, with a detached garage and a utility room.
The couple have a family member who is a solicitor, so they were able to get advice they trusted during the process. They also had a few months to shop around for a mortgage while their brand-new home was being built.
We looked on the net, spoke to family and friends and checked out the best-buy tables in the newspapers. We noticed that the Yorkshire Building Society was number one in the best buys, so we decided to find out if it would lend to us, says Graham.
Sarah earns £25,000 and Graham £24,000, and after applying for a mortgage they found they were able to borrow the £142,000 they needed to put alongside their deposit to buy their new home.
The pair decided upon a five-year fixed deal over a 30-year term, at 4.49 per cent. After five years it will revert to the lenders standard variable rate (SVR). The payment on the repayment mortgage is £757 a month.
Taking the product out over 30 years gives us a lower monthly premium at the start, says Graham: In a few years time, when we have had salary increases, we hope to increase the payments, to pay it off more quickly.
Sarah and Graham, who are getting married this summer, spent £1,550 on stamp duty, £300 in legal fees and £290 on a valuation. The mortgage arrangement fee was £495.
After their years of waiting, the couple, who have just moved into their new home, are very pleased to be there at last: Its taken us a while to get on to the property ladder, says Graham. But the house is fantastic and were enjoying shopping for new furniture to make it our own.
