I quit school at 16 and became a teen mum – I now own four houses after sticking to five savvy saving rules, here’s how
WITH rocketing interest rates and inflation at a 40-year high, getting on to the property ladder may seem harder than ever – but it can be done.
In the Noughties Rachel Ollington was so obsessed with buying her own home that she did all she could to make it happen — despite mortgage rates being as high as seven per cent, around half a per cent higher than they are now.
She says: “Young people may be despairing at the thought of trying to get on to the property ladder, but it isn’t impossible.
“When I was buying my first home, mortgage rates were higher than now."
Mum-of-three Rachel now lives in her third family property, a four-bedroom house in Wickford, Essex worth £475,000, which they bought for £183,000 in 2005.
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She and husband Mike, 49, now own three buy-to-let properties, with the latest, in Lincolnshire, completing last week. This is despite never earning big wages.
Rachel and Mike, 49, are parents to Abbie, 21, Erin, 15, and Aiden, 11.
Rachel, 40, says: “I bought my first home at 19, my second at 23 and my third at 24 and increased the size of my properties without increasing my mortgage and without earning huge wages.
“I now have a rental property portfolio and I co-own an estate agency business, which people have said we were mad to start in the middle of the recession, but I really want to help people to do the same as me.
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“My husband and I own four properties, for which we paid £183,000, £195,000, £124,000 and £90,000 — a total of £592,000.
“They’re now worth £475,000, £260,000, £165,000 and £90,000 — that’s £990,000. And we’re looking to buy more buy-to-lets.”
Quitting school at 16 for a £100-a-week job at an estate agency, Rachel started saving.
After becoming pregnant at 18, she squirrelled away every penny, by using money-saving envelopes and selling unwanted items from around the house.
In a year, she had enough for the deposit on her first home.
She had seen struggles of her cash-strapped parents - lorry driver Derrick and foster carer Wendy - and recalls: “Growing up, money was tight. Any extra cash after paying the bills was saved for Christmas or birthdays so I know how it feels.”
Her mum, who died from cancer in 2008 aged 48, fostered children from deprived backgrounds, and Rachel says: “Some of them had been homeless. It made me determined to own my own property.
“As soon as I could, at 16, I got a job with the view of going to college, but I fell in love with it and never went back to school.”
Living at home, Rachel managed to save around £500 a month.
After passing her driving test at 17, her weekly wage rose to £175 as she was able to work weekends and evenings.
She then met Mike, who was then a photocopier engineer, and at 25, was eight years older than Rachel.
She says: “No boys my age were thinking about buying a house, and that was my obsession. I knew as soon as I was 18, I’d get a mortgage.
“He had that same interest. So we started to save together. We didn’t go out, we were happy renting a DVD.”
Being able to bring Abbie back to her own home was everything I’d wanted, it’s why we had worked so hard.
Rachel Ollington
The following year, the couple started viewing houses, when in January 2001, aged 18, Rachel discovered she was pregnant.
“Abbie was a happy accident,” Rachel says. “I had grown up in a big family environment so it didn’t phase me.
“It made me more determined than ever to buy a home in time for my baby to arrive.”
Five months later, the couple had enough money for a £37,000 deposit on a £91,000 two-bed bungalow in Wickford.#
Rachel already had £5,000, and the couple had saved £8,000 together. Mike sold his car for £9,000 and had £15,000 in savings.
She says: “The house was awful. It was what we could afford and that’s why it was right for us.
“I knew we’d be able to do it up and sell it on and move up the property ladder.”
The couple started renovations, replacing floorboards, putting in a new kitchen and bathroom, and plastering throughout.
She says: “We didn’t have holidays, or go out for dinner or days out, we had to get the job done.
“We were given furniture and white goods by people who knew us, or we bought secondhand from charity shops or car boot sales, and upcycled.”
Abbie was born in September 2001 - and friends and family bought the essentials such as her cot and pram.
“Being able to bring Abbie back to her own home was everything I’d wanted, it was the reason we had worked so hard,” she says.
No boys my age were thinking about buying a house, and that was my obsession. I knew as soon as I was 18, I’d get a mortgage.
Rachel Ollington
“When we told everyone we were engaged in 2003, all our gifts were B&Q vouchers.”
In 2004, they sold the home for £187,000, raking in nearly £100,000 in profit, and bought a two-bedroom bungalow for £183,000.
They added a loft extension, two bedrooms, an additional bathroom, a reception room and a conservatory, doing a lot of the work themselves to a strict budget.
In 2007, Rachel gave birth to the couple’s second child, Erin, and in 2011 they had a son, AJ.
She started to research the buy-to-let market, with the aim of investing in three properties — one for each of her kids for when they are older.
Rachel, who trained as a mortgage advisor in 2020, says once they reached the point of having their forever home, they could remortgage properties to let out.
She says: “We hadn’t increased our mortgage at all from the first home we bought - so it was only around £57,000.
“Not only would this give us additional income but also give someone who isn’t in a position to buy a house the opportunity to make sure their family has a roof over their heads.”
Rachel and Mike had saved £10,000, then in 2017, they remortgaged the family home to release £30,000 and bought a £195,000, two-bedroom maisonette.
The couple now own four homes worth £990,000 after paying £592,000 for them - and have their sights set on purchasing more buy to lets.
We didn’t have holidays, or go out for dinner or days out, we had to get the job done.
Rachel Ollington
Rachel is now co-running a sales and lettings agency, and helps people get on the property ladder for the first time.
She says: “My advice to those who are looking to get on the property ladder is to keep in contact with your mortgage broker because things can change very quickly in terms of what you can borrow, and you need to be aware of this if it changes as it can affect the type of property you can buy.
“You are getting less property for the same monthly payments because interest rates are higher.
“I always say to look at the long term, but it’s different now.
“If this does happen to you, look at what you’re doing in terms of the property you’re buying - can you buy a one-bedroom instead of two? Is the house suitable for the next two years?
“After that, interest rates will probably have gone down or steadied, and you might be able to borrow more.
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“Find a property you can do work to, or one that’s outside of your key area.
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“Look at different options on how you can purchase a property that perhaps doesn’t tick as many of your boxes.”
Head to Rachel's page for more information.
GET ON THE PROPERTY LADDER
USE ENVELOPE METHOD: Save cash into different envelopes. Rachel had one envelope for each room in the house for redecoration or for solicitor’s fees and stamp duty.
LOOK FOR A PROJECT: Find a property you can do work on, they will be cheaper to buy now and will allow you to add value.
FIND EX-COUNCIL PROPERTIES: Former local authority properties are often cheaper, much larger than newer-build properties and have more opportunities for home improvement.
BE QUICK: Move fast once you have found a place. Have payslips, bank statements and evidence of deposit ready, because rates are changing by the hour.
SAVE A HIGHER DEPOSIT: Try to save more than a ten per cent deposit for better rates and a safety net.
