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Friend wants to buy a house at 19 (PLEASE HELP)
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Posts: 29 Forumite
Barratts are building some houses and my friend would love to get onto the property ladder at the age of 19.
He would be using the new governement scheme where they give you 20%.
The property he is looking at is £209,650. House will be completed OCT/NOV this year. He is looking at having a deposit of £5,000 - £15000.
So I can redirect him to this thread, can I get some help on the following points?
He's 19/20 end of the year.
Earns 24k a year
Has good crediting rating at his age, few credit cards, phone accounts low usage, all green ticks.
House will be in his name, he will be the one going through will the application, with his deposit of £5,000 - £15,000, along with the 20% contribution from the government and the house being worth 209,000 does he stand a good chance?
He currently lives in a rented housing association property and they said that they can give him 20k - 30k to put towards a house (one of those schemes) and he can pay it back after a good couple of years or when he sells. Interest free also.
many thanks
He would be using the new governement scheme where they give you 20%.
The property he is looking at is £209,650. House will be completed OCT/NOV this year. He is looking at having a deposit of £5,000 - £15000.
So I can redirect him to this thread, can I get some help on the following points?
He's 19/20 end of the year.
Earns 24k a year
Has good crediting rating at his age, few credit cards, phone accounts low usage, all green ticks.
House will be in his name, he will be the one going through will the application, with his deposit of £5,000 - £15,000, along with the 20% contribution from the government and the house being worth 209,000 does he stand a good chance?
He currently lives in a rented housing association property and they said that they can give him 20k - 30k to put towards a house (one of those schemes) and he can pay it back after a good couple of years or when he sells. Interest free also.
many thanks
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Comments
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There's no way he'll get a mortgage for 157K which he'd need on a property of that price with that salary.
I'm on 29k with no other dependants or outgoings and the most I could lend was about 130k.0 -
no chance - he needs to check affordability and that seems way out of his price range!Trainee Building Surveyor
DIP 12/02/13 - Mortgage application 13/02/13 - Valuation 14/02/13 - Valuation OK 22/02/13 - Mortgage offered 05/03/2013 - Completion 22/03/2013
FINALLY IN MY FIRST HOME!!! WAHOOOOOOO! :beer:0 -
Unfortunately I am sure that your friend - regardless of the amount of deposit and help - would meet the demands of any lender in terms of income multiples and having a secure enough credit history.
Regardless of the issues in buying a new build property it just seems an awful lot to take on at 19 years of age.
I'd advise having at least a good 6 years of fun and, if not fun, then saving until they are in a place - both financially and emotionally - to buy a house.
Think of a house as a baby - it needs love, time and a huge investment both financially and mentally that leaves you pretty much exhausted for everything else in your life!0 -
This for you or your friend, the mixed use of I/he muddies the post?
Either way, without a parent guaranteeing the loan and passing the credit checks its not going to happen.
If you/he can get a deposit at the upper end of the range then look at cheaper flat to start off with.0 -
Thanks to all those who's posted, sorry about the I's, it's actually for him.
I've done the barratts calculator and it seems it would need to be a 50k seller to get that type of house.
Maximum 95% mortgage:£200,000
Deposit at 5%:£10,526
Total property cost:£210,526
He still wouldn't be able to get that type of house with the help of the new governement scheme that has been announced yesterday with a 10k - 15k deposit?
Even if he tried to make out he was a 50k salary, they won't believe a 19 year old would be making that kind of money easily.0 -
Wouldn't we all...Barratts are building some houses and my friend would love to get onto the property ladder at the age of 19.
The property he is looking at is £209,650. House will be completed OCT/NOV this year. He is looking at having a deposit of £5,000 - £15000.
...
He's 19/20 end of the year.
Earns 24k a year
I suggest he looks at something within his price range that he could afford to repay
The new scheme hasn't been fully designed yet, but it's not planned to be available before January 2014 so it can't be used on the property you/your friend are looking at anyway.0 -
...Even if he tried to make out he was a 50k salary, they won't believe a 19 year old would be making that kind of money easily.
He can't try to 'make out' his salary - it would need to be provable and he would need to be able to afford to repay any loan. Age won't make any difference (as long as the mortgage is planned to be repaid before retirement); what the employer (and/or possibly HMRC) says is what usually counts0 -
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Your friend is on a very good wage for his age. It must have taken a lot of determination and hard work to get to where He is. Anyway, I think that he it's out of his price range. But I am sure things will work out for him.0
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He can't try to 'make out' his salary - it would need to be provable and he would need to be able to afford to repay any loan. Age won't make any difference; what the employer (and/or possibly HMRC) says is what usually counts
Provable as in bank statements, wageslips? He is very good a photoshop.
He picks up over 1400 a month.
Let's say the mortgage is 700 - 1000? He has £400 a month left, he walks to work. Bills 200 a month, has 200 disposable income left.
Obviously a lender will see this as strain and most likely will default but he's willing to sacrifice a lot of things in order for it to work.0
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