What should we do now...?

YoungBaker

I am 21 years old, earn 27k pa looking to try and get a mortgage.

I went to my own bank (bank of scotland) and they have told me they are willing to lend me up to 120k - but would need a 35% deposit. This would be for any amount (as I only wanted around 50k) - so would still need 35% of any amount.

I would only have a 10% deposit and was looking for this. I know there are not many 10% deals going for ftb just now, and I am obviously young as well.

What do we do now? Should we try and find a deal through someone else who would take us on with 10%? (or is this just not going to happen?). Should we just rent for a year or two and build our savings up and try again in a few years time? (OH's wage will be spare to save fully). Thanks.

(In Scotland if that helps)

Thrugelmir

al_1232 wrote: »

I went to my own bank and they have told me they are willing to lend me up to 120k - but would need a 35% deposit. This would be for any amount (as I only wanted around 50k) - so would still need 35% of any amount.

The question is why? Whatever the reason it will influence the decision of other lenders.

R_P_W

Yes try somehere else

YoungBaker

The mortgage advisor in BOS said the only reason she could see why would be because I am young and have been in my job since September and because I havent had lots of debt before.

The only debt I have is a 1k student overdraft in a different account which I am now paying off.

YoungBaker

Does anyone have experience of the Post Office as I believe I can apply for an AIP online with them and get an instant idea of what I would need from them for their 10% products... or should I try someone else?

ACG

so your looking for a purchase price of around £55-60k?

This shouldnt be a problem. It might be worth speaking to some other banks or a mortgage advisor.

YoungBaker

Yes pretty much. Do you think so? It worries me that my own bank would not offer me a product at 10% though so I am of the mindset I would think noone else would either?

It is highly frustrating though I have worked hard my whole life and have managed to get myself a job with a great salary for my age to start with and have tried to save up a 10% deposit whilst I did this. Now I am at the time I need to move and am preparing for this and likely am going to need to privately rent and pay an excess amount off someone elses mortgage.

R_P_W

Worked hard your whole life? You are 21!

Buying a property isnt an entitlement! Save a bit morr and get a higher deposit? Having to rent for a year or two isnt going to make your landlord a millionaire especially if they have a mortgage

YoungBaker

Sorry but just because I am 21 doesn't mean I cannot say I have worked hard all my life. I managed to get excellent grades at school and university walking away with a first class honours, then managed to secure an excellent job in times when most graduates are struggling - all whilst working two jobs throughout my whole studies to pay my way through and build up some savings. Maybe that's "not working hard your whole life" to you, but when I look at most people my age I think I have done pretty well for myself and accomplished a lot through hard work and effort I put in.

Secondly I don't think I ever once said or implied that a mortgage and buying a property is an entitlement - nor am I going to pay millions off a landlords mortgage. But it is quite evident it would make more financial sense to purchase a property of my own and pay roughly 300 per month which would further act as a deposit for my future moves, as opposed to paying 600 for a let in which I will get no personal financial return.

Thanks a lot for your constructive input to this thread though... :-l

Simon_gloster

You will never know 100%, anyone, the outcome of a credit score decision. This info is never released by lenders. People who have a mortgage and a 999 credit score can have a max LTV restriction based on that lenders credit model.

You are a low scoring pass with BOS, however you may not with others. As said try a broker, but my gut feeling on this is you aint going to know who'll do 10% until you try.

YoungBaker

Thanks Simon I appreciate your input