Friend wants to buy a house at 19 (PLEASE HELP)

kingstreet

He will have to satisfy a mortgage lender's affordability criteria and that will involve providing payslips and P60 as proof of income and a number of months' bank statements to verify "status."

He will be able to borrow a maximum of 5x his gross annual income, possibly less, and that is going to go nowhere near a purchase of a £200k property.

Dukesy

Having had my first home at 20, the renovation and sale of which has allowed OH and I to take a step up the ladder at a point where most of our friends are yet to be able to take their first step onto the housing ladder, I would never dissuade people from buying early - if they can afford it, that is.

I think your friend needs to take a good look at his finances and aim a little lower for his first property.

HappyMJ

HOMES wrote: »

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.

Is this a joke?

Photoshop?

He's going to live on £200 a month...and lives in a housing association property...something well strange going on here.

lee111s

HOMES wrote: »

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.

I think your "friend" needs to wake up and smell the fresh air. There's no way bills will come to £200. Gas, electricity, water, tv licence, phone line, broadband will easily be £200, that's without insurances, food, money to entertain and of course savings in case something goes wrong.

On that sort of income the maximum mortgage I'd be looking at would be 100k to be comfortable, especially at that age being a first time buyer.

richardw

Forget it. Book a holiday to Ibiza, live a bit.

giddypenguin

My council tax is £219 a month alone...

Anyhoo... I think this is a wind up.

Hollypop_2

£200 a month on bills? where is this property?

What about council tax thats AT LEAST half that £200?
then
Gas
Water
Electric
FOOD
Phone / Broadband
TV Licence
house insurance

etc etc

Also need to look at the small print as when i last looked into a barratt scheme a couple of years ago you could actually only buy a property that had one more bedroom that you need. so in your friends case a 2 bed property.

HOMES

once again, many thanks for all your replies. On his salary, what deposit would he need to come up with in order to get the house on a mortgage?

80K deposit? He could always ask his grandma for his early entitlement.

lee111s

The most he'd be able to lend realistically is 5x his salary which would be 120k. You work out what else he'd need from that. If he can get 80k from a relative why even consider the assisted purchase scheme.

richardw

HOMES wrote: »

..80K deposit? He could always ask his grandma for his early entitlement..

It isn't his entitlement. It's her money, leave her out of it.