Getting a mortgage at the age of 26/27. Thoughts?

nickgowdy

Hi everyone,

Since April of last year I have been trying to save more and stretch my money further instead of it sitting there in my bank account. I also own shares and I am trying to build my wealth in a sensible way.

My current housing situation is that I live with my parents so I am paying them rent and we live in East London and are moving slightly further out to Essex.

Which brings me to my question. At my age (26) would it make sense for me to get a mortgage and take my first step on the property ladder? I work as a programmer in Central London and I am earning around 30k per year. My job is stable and there is plenty of work from what I can see so I don't have any concerns about losing my job.

In terms of actual property I have been currently looking in the docklands area near excel.

Regards,
Nick

pawlala

Ask yourself the question, why shouldn't you take your first step on the housing ladder? You seem ready for that jump.

in_need_of_direction

I took on my first mortgage at the ripe old age of 22. For me buying was the only way of getting to live where I wanted in the type of house I wanted. I don't think that age is a factor rather I think it's a case of working out the life you want and doing what works best for that. Good luck with the decision

nickgowdy

pawlala wrote: »

Ask yourself the question, why shouldn't you take your first step on the housing ladder? You seem ready for that jump.

I think I am ready because I am sensible with money and I want a place to call my own rather than renting and paying money to a landlord.

My only concern is that I am new to all of this so it's a bit scary. Also right now I only want a one bedroom property because I don't have a long term partner but in the future I would want to move somewhere else.

hazyjo

I was 21. Weird how 'kids today' seem so much more grown up in some ways than 'when I were a girl...' but so young in others! At 26, most of my friends at that time were married with kids and had had mortgages for a few yearsl.

(No offence to OP, just sayin'!)

If you're ready for it, and have a decent deposit, go for it! We can help you with the scary bits

Do as much research as you can before looking. If Docklands, etc, would that be a flat? Are you aware of service charge, ground rent, lease length, etc?

Use some online calculators to get a rough idea of what you can borrow (YBS do a decent one). You'll probably take a 25 year mortgage, although 30 is not uncommon these days. Most people say get one for as short as you can afford, but, at your age, 30 years woudn't be too horrendous in London.

Also check out the Docklands at night. Not all of it's busy, some of it's dead as a doornail and still next to some quite rough/scruffy parts.

If you love bars, clubs, nights out, etc, there are some good options slightly further out, and probably still near parents (Wanstead, parts of Essex, etc, or even the City).

Jx

lee111s

I was 25 when I bought my first house. I could have done it earlier and I don't regret the awesome times I had frittering my money away when I was younger!

ging84

depends if you want to move out really doesn't it
if you are happy living with your parents at 27 and are not paying very much rent then you are going to struggle to be better off for buying a house compared to putting your money in the stock market.
But if you are paying a lot of rent, then you'll probably be the same or better off buying and moving out, and also, if you are paying a lot in rent to live with your parents, it's usually a sign that they want you gone anyway

nickgowdy

If you're ready for it, and have a decent deposit, go for it! We can help you with the scary bits

Do as much research as you can before looking. If Docklands, etc, would that be a flat? Are you aware of service charge, ground rent, lease length, etc?

Use some online calculators to get a rough idea of what you can borrow (YBS do a decent one). You'll probably take a 25 year mortgage, although 30 is not uncommon these days. Most people say get one for as short as you can afford, but, at your age, 30 years woudn't be too horrendous in London.

Also check out the Docklands at night. Not all of it's busy, some of it's dead as a doornail and still next to some quite rough/scruffy parts.


Jx

I am from East London so I know that area, I know it's not an amazing place to live but I can use the DLR to get into Central London quickly and I can get a decent amount of space for my money. A studio apartment does not look appealing at all.

Another question I have is what are peoples thoughts on shared ownership. I believe the term is starcasing? I have seen properties where they want less money for a percentage of the equity. I recently saw a property in north west london zone 2 which was 250,000 for a one bedroom apartment and the asking price was 100,000 for a percentage of the equity.

Is shared ownership a good alternative?

Out,_Vile_Jelly

A 1 bed flat is harder to sell when you want to move on, plus you don't have the option of a lodger in the spare room to help out with the mortgage.

Check shared ownership small print extremely carefully as they can be difficult to sell. You arguably have the worst of both worlds; still paying rent but liable for all maintenance (plus the extra costs that leaseholders in large blocks of flats face).

You should buy because it suits your stage in life; I don't think age should come into it. I bought my first place last year aged 35.

nickgowdy

Thanks all for your help:)

I have one last question.. What would be the first step if your somebody thinking about getting a mortgage? Would you go to your bank, for example I am with Lloyds or is it better to go a mortgage advisor?

Regards,
Nick

zabi89

Age is irrelevant, it's all about your income and seeing as though you have a good income, you should be fine depending on the cost of the house you're intending to buy.