With the cost of living steadily rising, many homeowners are looking for creative ways to generate extra income. One such opportunity is renting out your driveway. 

If you have a parking space or driveway that sits empty most of the day, turning it into a source of passive income is easier than you might think. Here’s how you can get started and make the most from this opportunity.

Why rent out your driveway?

The demand for parking spaces in busy cities and towns across the UK is huge. Many areas suffer from a lack of available (and affordable) parking, leading commuters, tourists and even local residents to search for alternatives. Renting out your driveway can help fill this gap while putting extra money in your pocket.

How much can you earn?

The amount you can earn by renting out your driveway varies based on location, demand and the availability of alternative parking options. In central London, for example, you could earn between £150 and £400 per month. In other cities and suburban areas the earnings might be lower but still substantial enough to make it worth your while.

So how do you get started?

Various apps and online platforms make it easy to list and rent out your driveway. These platforms provide a user-friendly interface, allowing you to manage bookings and payments efficiently. 

In this article I will focus on JustPark, one of the most popular and widely used parking platforms. But there are several others – listed later – that are well worth checking out too. 

How does JustPark work?

Through their website and mobile app, JustPark puts drivers in touch with home-owners and businesses who have parking spaces (and/or EV charging facilities) available near their destination. They say they help over 13 million drivers a year find parking spaces at over 45,000 UK locations.

Listing your space is free and you can set your own price based on how long the driver wishes to stay. JustPark will suggest an appropriate price based on your location and the facilities you are offering, but you aren’t obliged to accept this.

JustPark charges space-owners (or hosts as they call them) a 3% fee on bookings (so if you charge £10 they will take 30p, meaning you receive £9.70). They also make money from drivers, adding up to 25% of the host’s asking price to the fee charged. They say, however, that charges to drivers are still typically 30% lower than ad hoc street parking (if you can find it), which makes the service attractive to drivers too.

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A big attraction of JustPark is that they handle all the admin on your behalf. All payments are made via the site, and hosts can withdraw earnings via PayPal or direct to their bank account. JustPark also ensures hosts still get paid even if the booker doesn’t turn up.

The money you earn from renting out your parking space is covered by the tax-free trading allowance, so you can make up to £1,000 per year completely free of  tax (and no need to declare it to the taxman). According to the JustPark website, hosts have made a total of over £50 million since the platform first started. Their top hosts earn over £4,000 a year. 

All drivers using the service have to register, so you know exactly who will be using your space on any given day. There is also a rating system so you can see any comments other users of the service have made about them. Hosts are also rated by drivers, incidentally.

You can offer spaces by the day, week or month, and set any restrictions you wish on when your space is available. Anyone is welcome to advertise spaces on JustPark, but the locations in most demand are those near airports, stations and stadiums, and in major cities. 

Other options

As mentioned, JustPark isn’t the only platform offering this service. Here are a few others to check out:

Parklet – Similar to JustPark, Parklet allows homeowners to rent out their parking spaces. It offers flexible payment options, including monthly rentals, which can attract long-term renters.

Your Parking Space – YourParkingSpace caters to both short-term and long-term parking needs, making it ideal for different types of renters. The platform handles all the logistics, including payment processing.

Kerb – Kerb is a parking app that allows homeowners to rent out their driveway to commuters, event-goers, and more. It has a global reach, making it useful for those living near airports or other major transport hubs.

Top tips

To maximize your earnings and attract more renters, consider the following tips:

• Create clear and detailed listings – include high-quality photos and precise descriptions of your space.
• Offer competitive pricing – research similar listings in your area to set a competitive rate.
• Maximize availability – the more available your parking space, the higher your chances of securing renters.
• Communicate well – respond promptly and courteously to booking requests and enquiries.
• Prioritize safety and security – ensure your driveway is well maintained and well lit at night. 
• Avoid confusion or misunderstandings – provide clear instructions for renters.
• Offer EV charging facilities – with EVs growing in popularity, this can be a great selling point for your space. And of course, you can charge more too.

Closing thoughts

I hope this article has opened your eyes to the money-making potential of renting out your driveway. 

Obviously in recent years the pandemic and working from home reduced demand for parking. But with life returning to normal now, demand for parking spaces is steadily increasing again. If you are lucky enough to have a driveway or other parking space you could rent out, why not start making money from it today?

• Of course, if you don’t have a suitable space to offer, you won’t be able to benefit from this opportunity. You could still use JustPark and similar platforms to save money on your own parking costs, though. Either way, these services are well worth checking out.

As always, if you have any comments to share about this article, please do leave them below.Nick Daws writes for Pounds and Sense, a UK personal finance blog aimed especially (though not exclusively) at over-fifties.

Photo credits: Pexels

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Amidst an uncertain economic environment and the rising cost-of-living, it’s increasingly important to take better control of your finances.

Here are some of our favourite money stories this week to help you get your head around your finances.

Households face biggest water bills rise in decades

Jess Clark writes for The Guardian as household water bills face the biggest rise in almost two decades from April 2023.

The typical water bill will face a hike of 7.5%, increasing to an average of £448 a year. While the increase is less than inflation, one in five customers who are struggling to pay have a ‘tipping point’ of an additional 8p a day.

Water firms will see several future investments, and companies have recently increased the level of support offered by over £200m. However, consumer groups lash back calling it a ‘postcode lottery.’

Emma Clancy, chief executive of the Consumer Council for Water, comments: “Low-income households need immediate relief and the long-term security of knowing their water bill will be affordable.

“It’s not fair that struggling households face a postcode lottery when it comes to getting help with their bill – that’s why we urgently need a new water affordability scheme that provides consistent support based on people’s needs.”

One in five eating food beyond use-by date

Cost-of-living correspondent Kevin Peachey writes for the BBC that many are struggling to keep warm and eating food past use-by-date as prices soar.

The Office for National Statistics (ONS) shows data that nearly one in five adults surveyed said that they ate smaller portions or food beyond its use-by date in the days approaching Christmas.

The Food Standards Agency says that people should: “Never eat food after the use-by date, even if it looks and smells ok, as it could make you very ill”.

Four in five (80%) of those asked were worried about the cost-of-living crisis affecting them, with some also losing sleep over it. 15% were found to be worried that their food would run out before they had money to purchase more.

Cold Winter weather coupled with the soaring costs of energy bills and food prices is continuing to have a significant impact on people’s mental and physical health and wellbeing.

Londoners selling homes on WhatsApp

Damian Shepherd reports for Bloomberg on a booming private property sales market in London, with Londoners selling their homes via WhatsApp.

Under-the-table sales hit record levels with almost 25% of London homes sold off-market in the last quarter of 2022. The trend is predominantly in expensive property sales, allowing the parties to negotiate on their own terms.

Almost a third of homes sold for £1m or more were sold off-market in this period, primarily due to the increased activity at the top of London’s real estate market. A strong dollar has drawn more international buyers to the market.

A Hamptons analyst anticipates that strong off-market sales will continue through 2023. However, high-end properties will still be available in public view on property portals.

Photo by Imani on Unsplash

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Mouthy Money’s Your Questions Answered panellist Natasha Heron answers a reader’s question on whether they will have a higher rate of tax on their rental property in Wales while living somewhere else.

rental property in Wales

Question: I own a home (paying the mortgage) in Wales which is currently being rented to tenants.

In 2023 my wife and I will look to buy a home together. We currently live in a flat which is owned by my wife’s sisters.

If we were to buy a property in Wales, would I be stung with a higher rate of tax because I already own a property which is being rented?

The new property will be my main residence and, preferably, I’d like to keep hold of the property I am letting out.

Answer: This is one of the main areas which causes confusion as the SDLT surcharge on second homes includes a special exemption when a purchaser is replacing their main residence.

The test is a two-tier approach.

Firstly, do you hold more than a £40,000 interest in any worldwide residential property? If yes, then you fall into the surcharge for second homes.

Next, we look at each buyer separately to see whether they qualify for an exemption. It is important to remember that each buyer must qualify and if one does not, they will ‘taint’ the entire purchase.

Secondly, have you (or are you) making a disposal of a main residence? The main residence exemption safeguards buyers who are simply selling their main residence to replace it with another to ensure they are not unfairly landed with the surcharge.

Usually, a main residence is sold in conjunction with purchasing a new one. However, the rules do permit for a main residence to be sold within three years of the purchase. This means the surcharge applies but it is refundable provided conditions are met.

If we use the two-step approach above, ask:

1. Do you own more than a £40k interest in a residential property? Yes, you have a BTL.

2. Main residence exemption:

a. Have you sold a main residence in the past three years?

b. Are you selling a main residence?

As you are married, we can consider whether you can rely on your wife’s situation. Unmarried, joint purchasers cannot rely on one another’s situation, but spouses and civil partners can.

If your wife has sold a main residence within three years preceding the purchase and she also lived in her property as a main residence in that time frame, you can potentially rely on her sale.

Assuming the answers to the above are “no”, the surcharge will apply to your new purchase.

Your only option to avoid the surcharge is to sell the BTL before purchasing your new property. If it is sold afterwards, you cannot reclaim the surcharge as you have not occupied the BTL as your main residence.

This is a tricky tax and you must seek advice at the earliest opportunity.

Natasha Heron is a tax manager at the accountants Hillier Hopkins, and host of the Tax Able With Tash podcast.

Photo by Thirdman

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The perfect opportunity for those looking to buy, build or improve their home, the National Homebuilding & Renovating Show is back at the NEC, Birmingham between 24-27 March 2022 … and you can get two free tickets worth £36!

The show will be hosting more than 250 exhibitors showcasing thousands of products and, holding free daily seminars and masterclasses covering a whole host of areas including kitchens; bathrooms; doors and windows; extensions and conversions; eco and heating; architecture; design; financial services; planning permissions and much more.

The Home Improvement Theatre, sponsored by Korniche, will impart useful wisdom on all things interior design, kitchens & bathrooms, renovations and extensions.

More about the Homebuilding & Renovation Show

Visitors keen to find out more about the design, planning and construction process are recommended to book an Ask the Architect consultation, where chartered specialists can assist with consumers’ specific issues.

Members of the Federation of Master Builders will guide people booking an Ask the Builder session on hiring accredited, highly skilled construction workers.

A key feature at the show is The Advice Centre, where homeowners can discuss their project ideas with industry leaders.

For specialist advice and tips on all aspects associated with self-build and renovation, 15-minute Ask the Expert consultations are available through interactive sessions to help assist visitors in achieving and realising their property ambitions.

Experts at this year’s National Show include property expert Michael Holmes. Michael has presented over 150 property shows for the likes of ITV and BBC including ‘Good Bid Good Buy’ and ‘Build, Buy or Restore?’ He will be offering design guides at the show on home staples such as kitchens and extensions.

Also participating at Ask the Expert is eco genius David Hilton who will be hosting a session on how to best heat your home. 

To claim two free tickets to any one day of the show, click on the link below. T&Cs apply. 

Claim free tickets here

Photos courtesy of the Homebuilding & Renovating show

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Moving can be stressful at the best of times. But what about moving into a house you had never been to see?

Because of the coronavirus lockdown, that’s exactly what happened to me.

Until recently, I lived in a house-share in Peckham, London, on a 24-month contract, with a break clause at 18 months.

While my housemates and I loved the area, the house had seen better days, to put it nicely. Dog-eared furniture, mouldy ceilings and faulty kitchen appliances finally got to us and we decided in March to give our notice to the landlord.

But that was pre-lockdown. Back then country was still in ‘everything is fine, everybody go to Cheltenham Races’ mode.

So, as you would, we started looking online for new places to live. Eventually, we found a suitable place through OpenRent with a private landlord.

Being the veteran of a few moves, we were all aware of letting agents’ magical ability to make crap places look like palaces.

What swung it for us was that, alongside being a nice place, the landlord was clearly no photographer, so there was less of a risk that the place would actually be a cesspit when we went to view it. Bonus.

However, then, from out of nowhere, lockdown was announced and with it, property viewings were banned.

Our hearts sank. We had already given our notice to our current landlord and so we had to leave by 15 May. Yet we now had no way of finding out whether the property we had chosen was actually a hovel.

As much as we hated the idea, there was no alternative but to bite the bullet and move in anyway.

On moving day, it was a little like waking up on Christmas morning, excited about what presents await you under the tree.

Except that you don’t know whether your parents have got you a PlayStation or a 25-year-old beaten up GameBoy. Thankfully, it was the former and I am currently writing this from a light and airy (but roasting) conservatory in SE11.

But things could have quite easily gone dreadfully wrong and I have certainly learnt a thing or two about renting that I never knew before.

And while viewings are allowed again now, there are people who choose to move into homes they have never seen, particularly if they are moving to the other end of the country, or even a different country altogether for that matter. Google it, if you don’t believe me.

So, as someone who has taken such a giant leap of faith, here are some helpful hints and tips.

Get more proof of a property’s condition

It’s important to remember that you are on the right side of the supply and demand relationship in this circumstance.

The landlord has a property to fill and you need to be assured its safe and clean, and actually resembles the photos on a letting agent’s website.

So, you are well within your rights to ask for a video tour of the property and closeups on things like the sockets and furniture.

If they refuse, there’s a good reason why and you should probably look elsewhere.

Share tasks

If you’re moving in with other people – friends, or perhaps a partner – share the property search responsibilities.

And use all of the search websites – Rightmove, Zoopla – the lot, as you might miss a gem if you don’t.

We added potential properties to a Google Sheets document, all marked up with the price, location and our own observations.

That helped us quickly work out which ones were worth considering and which ones weren’t.

Research the area

There’s nothing worse than finding the perfect house but turning up and realising you hate the area. So before you move in, find out more about it.

Does it have a crime problem? Is the house miles away from public transport? Are there fun things to do nearby? And perhaps most importantly, what are the pubs like? These are all important questions.

Google Maps is also a great tool to see what the surroundings look like.

Don’t be pushed around by agents

Firstly, find an agent you trust – that applies even if you are able to view a property – and don’t let them force you into making decision you’re not comfortable with.

Yes, we were in a rush, but that doesn’t mean that we had to jump at the very first offer. It’s fine to negotiate on price.

And also, if there is something about the house you don’t like (does it need repainting? Has it been checked for rodents?) then raise it. Remember, you’re the customer and therefore you’re in control.

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Like so many young couples, owning our own place was something we had always dreamed of.

When we began looking at houses in November 2019, we couldn’t have imagined that a few months later we would be moving into our new home during a global pandemic.

For us the desire to buy came from the numerous dealings with incompetent lettings agents and landlords over the years, which left us frustrated and no better off financially.

The plan was always to buy when we could, and I think our initial search was more inquisitive than anything: what size and style of property do we like? Should we revamp an older house or get a ready-made new build?

But what started as wondering, soon became a reality and just over a month later we had reserved our house.

I’m not the best at online shopping as I find it difficult to judge something I can’t actually see, and this was only amplified when it came to buying something as big as a house. It’s all well and good scrolling through pages on Rightmove, but until you’re committed enough to schedule a viewing, it’s difficult.

This is where the idea of new builds came in. We didn’t know if we would like them, but we thought they’d be a great way to ‘window shop’ and get décor inspiration.

With the numerous horror stories associated with new builds, we were very particular about which ones we would even consider. We went for only large 4* house builders and above, as rated by the National House Building Council (NHBC). This narrowed down our options and the exciting part of viewing show homes began.

We actually ended up buying one of the first houses we saw, but this wasn’t until after we had seen many more developments and who knows how many houses.

Throughout the whole process we continued to compare other houses to ‘ours’, so I think subconsciously we had both made our minds up but were afraid to commit to anything out loud because it would make it real. It is a scarily big decision when it’s your first house.

What sold it for us were a few things: the house builders’ quality of finish and the fact that a lot of features came as standard, while other builders were charging over the moon for basic things like having a shower over the bath! They also offered open plan living, which is something we’re used to and works well for us but isn’t available in a lot of properties. And the location of the plot on the development and of course the location itself were great.

It basically ticked all our boxes and we highly recommend having a checklist with both a ‘must have’ and a ‘nice to have’ column. Sales advisors will try selling you the dream, whether the house for sale has what you’re looking for or not, so be particular and don’t be afraid to walk away if it isn’t quite right. It’s a big investment after all and you don’t want any regrets.

In terms of the location, we were after somewhere commutable to Milton Keynes, where we both currently work, but that also offered easy links to cities like London and Birmingham for current meeting requirements, and for the future if we change jobs. Looking further afield from Milton Keynes and moving north of our hometown in Oxfordshire allowed us to get more for our money.

The first question a lot of people have when you tell them you’re buying a house is: “how are you affording that?” With the highlight reel nature of social media, people tend to only see the holidays and fun activities and forget there’s a whole host of things happening behind the scenes. We have always been sensible with our money. Don’t get me wrong, we definitely enjoyed our university years and continue to travel the world but squirreling away a bit each month soon adds up over the years.

The mortgage process was a bit more complex. Because my other half, Ciaran, works for a bank, he took the lead in sorting out the mortgage.

After speaking with a number of mortgage brokers referred to us by the house builders, because we were told we had to have an affordability check carried out first, we decided to make use of the Help to Buy equity scheme. This made the most sense as it allowed us to put down a smaller deposit, leaving us with more money to kit the house out and keep a larger ‘rainy day’ fund.

We also opted for a 35-year term with an initial five-year fix, mainly to reduce our monthly payments, but it’s nice to have certainty during this uncertain time. However, we do plan to make overpayments to reduce the term and come re-mortgage time we will reduce it further.

Getting the mortgage was fairly straightforward. The broker we used specialised in new builds, so that made the whole process a lot smoother. Because we used the broker referred to us by our house builder, the broker fees were covered by the developer. Having already gone through plenty of the detail and understanding the fees, we felt no need to look around at other brokers or mortgage lenders.

It’s worth pointing out that many brokers don’t charge fees at all, so definitely be sure of how much you’re paying and why. Don’t feel pushed into using the broker recommended by the developer if you want to shop around.

Because we had been saving up our deposit for a long time, when we decided we wanted to buy finding the perfect house and getting the right mortgage was actually pretty straightforward. So we were super excited when moving day finally came round, only to discover that we’d have to move in the first week of the UK lockdown. Now that’s another story!

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I spoke to tax expert Oliver Claridge, a tax expert in law firm Forsters’ corporate tax department about the tax disadvantages of choosing to leave the knot untied.

Pensions and income tax

Cohabiting couples are unable to claim state benefits based on their deceased partner’s national insurance contributions, unlike those who are married or in a civil partnership.

Claridge explained that they are also less likely to be able to receive payments from their late partner’s pension scheme, although this depends on the terms of the specific scheme.

“Cohabiting couples who are not married or in civil partnerships are also not entitled to the marriage allowance, which allows spouses or civil partners to transfer £1,250 of their personal allowance to their partner,” he said. “If the lower earner has an income of less than £12,500, this can potentially give them a tax saving of £250.”

Married people may also inherit anything between 50% and 100% of the state earnings related pension of their late partner, which unmarried couples will not inherit automatically.

Inheritance tax (IHT)

According to Claridge, married couples and civil partners have unlimited transfers between themselves that are exempt from IHT, both during their lifetime and after death, unless one partner has a different domicile status and the transfer is to the non-UK domiciled partner.

“Cohabiting couples may face IHT charges depending on the size of their partner’s estate and they will not receive any bereavement benefits,” he added.

If a person is married or in a civil partnership, their estate can be passed on tax free to their partner, but this is not the case for co-habiting couples, who will be liable for a 40% inheritance tax (IHT) on estates worth more than the current threshold. 

Capital gains tax (CGT)

Married couples or couples in a civil partnership are able to pass property to each other on a no gain, no loss basis when it comes to CGT.

“This means that if you pass property to your partner, no CGT is payable regardless of whether it was transferred as a gift or sold for value, meaning they receive the asset at your base cost,” Claridge explained.

“Meanwhile, there is no equivalent for cohabiting couples as any gift between the couple will be at a deemed market value and so is potentially liable to CGT.”

Photo by Everton Vila on Unsplash

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Perhaps that’s a bit strong – but that “free” money can be financially lethal, if not literally so. To this day, I see it as one of the most irresponsible things any business has ever done to me. Yet, it was commonplace at the time and for that reason I won’t name and shame the lender.

Oh screw it, it was Northern Rock.

I’d been working as a journalist for a national newspaper in London. This time I’m really not going to name names due to sheer embarrassment – the paper used to support the Nazis and is the only paper in the world to be banned as a credible source by Wikipedia. You know the one.

The rabbit hutch I’d been living in near Kensington High Street was being sold and, as a friend of mine – a biscuit designer – lived a short commute away in Brighton (this was before Southern Rail abolished the concept of achievable commutes), I decided to do a bit of sofa surfing on the south coast.

Once more, you’ll notice, I’ve declined to name a name – this time, the biscuit designer’s. I will continue unapologetically in this manner as I have no wish to keep London’s libel lawyers in gin and funny wigs. And if you think the people in this blog post are you, there’s an outside chance you’re wrong. But it’s slim.

I was a card-carrying, flag-waving, ocean-going member of the UK’s large subprime community.

They call Brighton “The Graveyard of Ambition” because when Londoners move there (it’s always Londoners), they never move away. But they carry on working in the capital before eventually getting sick of the unachievable commute and taking much poorer paid jobs locally so they can continue living by the sea.

I was immediately bitten by the Brighton bug and suggested buying a flat with my biscuit designer friend (I’m going to call him ‘Dave’ because I can’t think of any other names). At that point, house prices were rising as quickly as the credit was flowing.

So Dave and I decided to buy a two-bedroom flat together on the sort of whim that might persuade you to change up from Debenhams to Calvin Klein boxer shorts.

They gave us money for nice furniture. A year later we were still watching TV in two fishing chairs.

In terms of risk, I wasn’t 100% prime or even near-prime. I was a card-carrying, flag-waving, ocean-going member of the UK’s large subprime community. I viewed cash machines in the way normal people view fruit machines, whooping with joy on the rare occasions they paid out.

But no-one at the bank seemed to care about my credit-worthiness. In fact, the heart-warmingly generous lending manager reminded us we’d need something to sit on and asked us whether we might want a few extra grand for some nice furniture.

Fast forward a year and we were still watching TV in two fishing chairs – you know the ones with beer holders. There was no nice furniture.

So where had the money gone?

In the mildest of salutes to responsibility, we’d both paid off credit cards – and then started using them again. We’d also shrunk our overdrafts to almost nothing – and then watched as they rebounded enthusiastically into the red.

I asked Dave just yesterday if he remembered how poor we were.

“Don’t be stupid,” he said. “We were loaded; we lived like kings – well, for a while anyway. I was the only biscuit designer in East or West Sussex who had a plasma TV on my bedroom ceiling.”

He really did. No girlfriend – but a plasma on the ceiling. Class.

We also had the most expensive Sky TV package, the fastest broadband, and the most luxurious health club membership. We were living a bit like Withnail and I. Dave was the decadent and devil-may-care ‘Withnail’ and I was ‘I’, the worrier who reluctantly participated in the high life, nonetheless.

But reality soon caught up with us. We began missing payments on bills. Letters from phone companies, banks and credit card companies became a daily occurrence. Honestly, we had more mail than the BBC at one point. Luxury items, like the gym and Sky TV, were cancelled.

Everything turned to shit. You don’t realise how depressing it was until you look back at it.

I remember a particularly sad moment when we both ended our contract with the Grosvenor fine wines club. But the fiscal environment had worsened too. Dark clouds were gathering.

Interest rates had risen and the mortgage repayments, which were variable, climbed sharply. I was forced to change jobs and took a £10k pay cut. Everything turned to shit. You don’t realise how depressing it was until you look back at it. For the next few years, money was a constant worry. And it drove a wedge between Dave and me.

As I’ve implied, Dave was a little bit more irresponsible – or Withnailish – than me and always seemed to owe me money. Communication broke down until it was conducted almost exclusively by half-smudged Post-it notes.

If we’d just rented, like we should have, we wouldn’t have gotten into that mess.

And we *were* in a mess. Dave got really close to bankruptcy and eventually became the shamed-faced owner of an Individual Voluntary Arrangement.

Credit wonks will know what that is but, for the cooler kids, it’s a way of avoiding bankruptcy and involves brokering deals with all your creditors to come up with a single monthly payment that’s shared between them. You commit to pay consistently and, in return, they stop levying interest and charges.

Things took a turn for the (even) worse when Dave moved to Casablanca, saddling me with the whole debt.

What saved me from that was the mortgage holidays we took. Mortgage holidays, you say? Oh yes! You can stop paying your mortgage for a few months. But, of course, that too has its downsides. The interest from the monthly payment you’ve decided to take as a payment holiday gets added to your mortgage. If you’ve ever taken one of these holidays or inquired about them, you’ll have noticed that they add a few pounds a month to your future mortgage payments.

Oh, and then things got even worse. Swaggering like a modern day Humphrey Bogart, Dave literally moved to Casablanca, in Morocco, where the biscuit design industry was booming. He somehow persuaded me to take legal ownership of the whole negative-equity-ridden flat, saddling me with the entire debt.

Helen put a stiletto up my behind and told me to get a proper job.

But, look. I’m still here. I’m a survivor! So how did I pull through?

Love, actually.

Yes, I met my then future and now current wife, Helen, and moved in with her, enabling me to rent out the Money Pit so that it paid for itself. I also got a great job – in Brighton. So much for The Graveyard of Ambition. I think, looking back, that was Helen’s doing too, since she put a stiletto up my behind and told me to get a proper job.

So I was able, slowly, to pay off my debts and now, 14 years later, I owe roughly what the asking price of the house was when we bought it in 2005. But, of course, it’s worth a lot more – about £70k more – and provides a good rental income.

So what did I learn?

First, avoid mortgage holidays. In fact, if you need one – and there’s no serious change in your circumstances – you probably shouldn’t have a mortgage in the first place.

But, actually, you should think about whether a mortgage is right for you in the first place. Renting would almost certainly have suited Dave and me better.

Finally, be careful who you buy with. I don’t mean Northern Rock, in my case. I mean Dave. If you’re going to buy with someone – if you have a Dave or Davina in your life – make sure they’re not the sort of person who thinks a ceiling-mounted plasma TV is cool.

My experiences and the lessons I learned inspired me to pass on that knowledge that now seems embarrassingly obvious – but never was – to others. This was one of the motivations I had when creating Mouthy Money alongside the site’s editor, Amy Rowe.

As you can see (you’re on it now), it’s a money blog – or digital magazine – with some 20 writers telling inspiring stories about their every day money challenges and successes. There’s loads here about mortgages and house buying so, please, take a look around. Touch things, if you really have to. But don’t break anything.

We’re different from the typical money blogger site because we don’t target people who think they need financial advice. Our audience is people who enjoy reading about other people’s lives and learning from their mistakes and successes.

They’re people who hate reading about finance but love reading about people’s financial decisions.

Before I go, I’ll leave you with another quote from Dave. I asked him what advice he might have for people thinking of getting a mortgage.

He thought for a minute, took a swig from what I now imagine to have been a Malibu and Coke and said: “If you can afford it, do it. If you can’t, do it anyway. It’ll be all right in the end.”

And, speaking as Dave’s chief creditor, that is most definitely NOT the moral of this story.

The post Like giving crack to a cocaine addict: my life with a 110% subprime mortgage appeared first on Mouthy Money.

In simple terms, I missed the window. My parents have never owned property, nor their parents before them. Growing up, money for a deposit and mortgage was unthinkable. Owning property has never been a ‘thing’ for us. It was never the goal and never the barometer by which we measured others’ success or failure.

In my late twenties, while many of my friends were busy with mortgage application fine print, I was in financial recovery after the end of a long-term relationship. I admired the sacrifices that my friends made in order to sign on the dotted line, and their dedication to the cause. Many had a helping hand from supportive parents, too, without which they’d also have struggled.

[Owning a property] was never the goal and never the barometer by which we measured others’ success or failure

A mortgage for my husband and me, when we got married in 2003, was denied because of my somewhat unenviable financial history. I worked hard to decrease debts and stabilise our finances but a mortgage was always tantalisingly just out of reach, even during periods of stability and hard saving. In 2006, my son was born, and all our income and resources went into maintaining the roof over our heads. Rent, huge commuting costs and stratospheric nursery fees meant that even our two decent salaries couldn’t stretch to more than treading water. This, compounded by two redundancies in the space of 14 months, meant that acquiring a mortgage (even if we’d had a deposit) was out of the question.

In 2010, my husband was offered a job overseas and it was the fresh start we badly needed. It took years to build up our savings but, nowadays, we have adequate pension plans in place, modest investment plans, and no debt, which we hope will fund a stress-free – if quiet and unexciting – retirement.

As renters, we don’t have to worry about maintenance expenses or negative equity. We realise that these worries are a small price to pay for peace of mind in the years to come, but we enjoy a mobile and footloose life that being tied to one location, or troublesome tenants, would not support.

While we envy our friends’ beautiful family homes – the product of sound decisions, hard work and many tears – we’ve resigned ourselves, not unhappily, with our property-less state. Having chosen to eschew convention in favour of an uncertain nomadic existence certainly ruffles feathers. Such a seemingly ill-disciplined endeavour would be unthinkable for some, particularly those who set dreams aside in favour of the security of a home of their own. We can see why our choices unsettle our critics, as we’re not easy to pigeon-hole. Perhaps they see frivolity and abandon, whereas the reality involved prudent retirement planning and placing a greater value on experiencing the world.

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If there’s one resolution that you should make – it’s to start saving.

A recent study found that 30% of adults have less than £300 in savings and wouldn’t be able to pay their next month’s rent or mortgage if they were to lose their job.

It’s not just those on low salaries, as you might think. Another study found that one in 10 people earning more than £75,000 a year don’t save.

Some might not be able to afford anything if they’re busy clearing debts. Any disposable income might be better off put towards clearing those debts before building up savings.

Those with seemingly large salaries might have hardly any disposable income if they’re mortgaged up to the hilt and used to the finer things in life – and are unwilling to give them up.

But for those who can, putting a little something away every month is better than doing nothing. Everyone needs some core savings as an emergency fund for those unforeseen events.

Here are five steps to adopting a healthy savings habit for 2019 and beyond.

1. Stop splashing the cash

Spend some time with your bank statements and receipts from your purse or wallet. They may not make the greatest companion, but they will definitely prove an interesting read as you finally pinpoint where your money really goes each month. Highlight the items that you regularly buy, but that you could live without. Even if you just saved the amount you stop frittering each month, you will start to see a nice fund building in time.

2. Set savings goals

There is no hard and fast rule on how much money should be squirrelled away in a savings account as an emergency or rainy day fund. But it should at least be enough to cover essential outgoings for around six months. There are lots of budgeting and savings apps that can spur you on – they can help you keep track on how your savings pots are building up. Tandem, an all-digital bank, has just launched an auto-savings feature which will scan your other accounts and work out how much you can afford to save based on what goes in and out. It will then automatically move what you can afford into an account that pays interest.

An app called Chip works in a similar way. It will scan your current account every few days and calculate what you can afford to put away. The cash is then deposited in a Chip account hosted by Barclays. 

The golden rule of saving is not to dip into any pot unless it’s totally unavoidable, so resist, resist, resist.

3. Hunt down the best rate

There’s a huge menu of savings accounts to choose from. Easy access, fixed rate accounts, regular savings accounts and then there’s cash ISAs. Whichever one you choose depends on if you think you’ll need access to the money. Ideally you won’t touch it in which case you can choose a fixed rate account where rates are higher to reward you for leaving your money for longer. There are one, two, three and five year options. Don’t assume ISAs pay the best rates – they often don’t. And we each now have a personal savings allowance which means you can earn £1,000 a year in interest tax-free if you’re a basic rate taxpayer – £500 for higher rate. Use a comparison website such as moneyfacts.co.uk to help you find the best account and rate. There are still a number of good accounts on the market despite the low interest rate environment.

4. Get paid to save

Getting paid to save sounds too good to be true. But actually you can earn as you save, using one of the Government-backed ISA schemes.

If you’re saving for a deposit for your first home, go for a Help to Buy ISA or, if you are aged between 18 and 40, a Lifetime ISA monthly savings plan to earn the generous 25% bonus on your savings from the Government.

With a Help to Buy Isa the most you can put in is £200 a month – or £1,200 a year – with no limit on how long you can save for. The maximum bonus is £3,000 on the first £12,000, giving you £15,000. 

With a Lifetime Isa you get the 25% bonus, too, but you can put in more – £4,000 – each year. You can use your savings towards your first home as long as the plan has been running for at least a year.

5. Think longer-term

It is only when this emergency pot has been built up, and disposable income increases, that it’s right to start thinking about how to make savings work harder. Investing money in the stock market offers opportunity for better returns that are likely to exceed any interest rate a high street bank can offer. Historically speaking, stock market gains far outweigh cash. But you need to be comfortable with the prospect of losing money.

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