Getting on the property ladder has been harder than ever amid rocketing interest rates and inflation peaking at a 40-year high. However, mum Rachel Ollington has shown that it is feasible even while "never earning a big wage".
Shortly after quitting school at 16, Rachel secured her first property just two years later. Fast forward to today, the mum-of-three is the proud owner of four stunning properties and has shared essential insight on how anyone can do the same.
While first-time buying is out of reach for many, Rachel was so obsessed with buying her own home that she did everything in her power to make it happen - even with mortgage rates being as high as 7%.
She says: "When I was buying my first home, mortgage rates were higher than they are now.
"Money was always tight for me when I was growing up; any extra cash after paying the bills was saved for Christmas or birthdays. So I know how it feels."
Rachel and her family are living in her third family property - a four-bedroom house worth £475,000 in Wickford, Essex, which they bought for £183,000 in 2005.
She and husband Mike now own three buy-to-let properties - with the latest, in Lincolnshire, completing last week - despite never earning big wages.
Alongside her long portfolio of property purchases, Rachel has now co-founded a letting and sales estate agency business called Vesta Essex - where she boasts more than 11,000 followers on Instagram helping young people succeed as she did.
Rachel's ability to purchase further properties is aided by her buy-to-let purchases, which she rents out to tenants and are now worth a pretty penny years later.
Rachel and Mike, 49, share children Abbie, 21, Erin, 15, and Aiden, 11.
The mum said: "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 now 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.
"My husband and I own four properties, for which we paid £183,000, £195,000, £124,000, £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 now looking to buy more buy-to-lets."
Upon quitting school at 16, Rachel started saving her cash from her estate agency job, which paid £100-a-week.
After falling pregnant at 18, Rachel, squirreled away every penny, and in a year, had enough for a deposit on her first home.
Having seen her cash-strapped parents forced to sell their family home when she was 12, Rachel was determined to put a roof over her new baby's head.
She said: "Growing up, my family moved from Essex to Norfolk because it was cheaper, and in between that we all moved in to my grandparents' small council house whilst we saved.
"My dad Derrick was a lorry driver, and my mum Wendy, who died from cancer in 2008 aged 48, was a full-time foster carer, taking in children who came from deprived backgrounds.
"Some of the children who came to live with us 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 wages increased to £175-a-week as she was able to work weekends and evenings.
She then met Mike who worked as a photocopier engineer and, at 25, was eight years older than Rachel.
She explained: "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."
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 the 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 second hand 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.
"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 re-mortgage 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 owns four homes worth £990,000 after paying £592,000 for them - and have their sights set on purchasing more buy-to-lets.
Rachel is now co-running Vesta Essex, a sales and lettings agency, and helps people get on the property ladder for the first time.
She explained: "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 to move again.
"Find a property you can do work to, or one that’s outside of your key area such as not being near a station as the house prices will be cheaper.
"Look at different options on how you can purchase a property that perhaps doesn’t tick as many of your boxes."
Do you have a story? We want to hear it! Get in touch at grace.hoffman@reachplc.com
