mortgages for 18 years olds

jennab18

Well me and my boyfriend have been toghter for 3 years and we have just got engaged and would like to look for our own place. We both earn 9000 grand a year and are bother 19 in a couple of months where do you think the best place for us to get a decent mortage

Tustastic

Hi Jenna and congratulations:j on your engagement.
Have you looked at the price of property in your area yet? Mortgage providers loan in multiples of joint salary (up to 3 I think but the experts will be along to advise). The two of you would need to save up a deposit and save another sum to cover the costs of buying and moving in.
Second jobs and promotion-seeking beckon for you two methinks
Do remember, Martin Lewis himself is not in favour of buying instead of renting, if you would be paying less each month to rent rather than on a mortgage payment.
Good luck with it all

jennab18

well we have got 10k saved up already we dont really want a huge house just a little one to get us on the property ladder.My partners mum said about renting but as you said i would be paying more id rather buy then rent

MortgageMamma

Hi Jenna

Congratulations on your engagement. I'm not necessarily advocating that you should do this, but you can borrow anything up to about 4.8 times joint salary,but what I think you shoudl do is sit down with a mortgage broker, draw up a budget, see what the maximum is you can afford on your mortgage payments and then look at the amount you can borrow based on that. Mortgage adviser can also help you find cheap insurances etc and explain everything that will happen. Don't go direct to the banks - you need proper advice from someone independent who has access to the whole of the lenders in the UK Marketplace

Mr_helpful

Well done on the engagement and well done for saving up the deposit. You dont say how much mortgage you require but I would be very reluctant to advise you to go for much over about 50K as there are a lot of other bills when you have the house other than the mortgage. Also with low incomes it is advisable to think about what hapens if you cant work through illness or are made redundant. Or another plague of young couples finances getting pregnant.
I never want to discourage enthusiasm but do as Mortgage Mamma says . Consult a good independent broker and work out a good budget planner to see what you can afford.

AndyWallace

Are you currently renting? And has the £10,000 come from your own savings? If so then you could spend the (rent+savings) on a mortgage and be almost unaffected. Even if you went interest only you could get a relatively decent amount. Taking MM's multiple above:

18,000 x 4.8 = 86,400 Borrowing Capacity

on interest only @ (I don't know the rates at which this lender is offering, but let's assume 5.5%) - equates to monthly payments of around £396.

Your rent plus savings could actually be around this? Who knows? Speak to an adviser.

Andy.

silkyuk9

Its a mine field out there. go speak to a 'Indapendant Mortgage Advisor' they make money by selling mortgages to people they take a commission from the lender so it won't cost you anything. they look for the best deals and what is suitalbe to you.

the rate is getting higher at this moment and a bank is not the best option. HSBC are around 5.85% now for new customers taking out a tracker. But ive just moved over from HSBC i have a £80 thou left to pay and ive gone with Woolich and saved £60 per month with nothing to pay for the switch.

the indapendant idvisor is worth seeing they are not tied to any lender

mags24

Now to be fair, "Independent Financial Advisors", IF they are paid by the mortgage lender are not independent at all. They may well advise that you get the mortgage that gives them the biggest commission.

Don't be so sure that you would pay more in rent than you would in mortgage at the moment. House prices have become so silly, that people who have brought BTL flats are subsidising their tenents by paying more than the rent they're getting in interest payments to the lender.

I'd start by having a look on rightmove and putting in some postcodes to see the cost of renting and buying in areas you are interested in. Then fill out a budget form to see what you could really afford to spend on rent/mortgage. Be aware that some flats have service charges which as the owner you would have to pay, but as a tenent you might not. The service charge could add an additional £80-£100 per month.

AndyWallace

mags24 wrote: »

Now to be fair, "Independent Financial Advisors", IF they are paid by the mortgage lender are not independent at all. They may well advise that you get the mortgage that gives them the biggest commission.

Absolutely true.

lewt

good luck in getting the house. i want one too. but there are so many bill's. which area do you live in? and would you have a flat which is all i have at the min.....

Mr_helpful

All mortgage advisers get commissions from lenders however the thing that makes them independent is that they select from the whole of market and the client has to have the option of paying the adviser purely by fee which means if this option is chosen the adviser must refund to the client the whole fee received from the lender. This is different from a whole of market broker.
However brokers are subject to inspection and one of the things the inspectors look for is commission selling and so in reality pushing people towards the best commission is probably pretty rare.