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

Building_Surveyor

I bought a house last year at 26.

Your first steps should be making sure your finances are in order. Have you got a credit history? Are all three of your credit reports up to date? Are you on the electoral roll?

P.s do you have a deposit as you haven't mentioned this?
These are all things you need to sort before you approach any bank or broker...

ncooper1974

Personally I'd use a mortgage broker, but 1st check that:
1. they cover the whole of market
2. you dont pay them for their service (they get paid commission when you finally get a mortgaged)

Good luck!

kingstreet

nickgowdy wrote: »

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

Choose a whole market broker for a view on lenders/deals which pay commission to brokers and research direct deals, like those from Lloyds, Yorkshire BS, HSBC yourself.

A broker would be a good option if you'll need "hand holding" along the way.

nickgowdy

Building_Surveyor wrote: »

I bought a house last year at 26.

Your first steps should be making sure your finances are in order. Have you got a credit history? Are all three of your credit reports up to date? Are you on the electoral roll?

P.s do you have a deposit as you haven't mentioned this?
These are all things you need to sort before you approach any bank or broker...

At this moment, I have £5700 in a cash ISA and £4000 in a S&S ISA. I also have 2k in the bank. In my mind I wanted to put more cash into my cash ISA when the new tax year begins. Then I am going to evaluate the situation then. I am also trying to get more money as a programmer which is a work in progress :sad:

Would it be worth going to a mortgage broker now even though I haven't acquired all the money needed for a deposit?

Also I am looking at property at around 150-200k.

Angelicdevil

Just a thought, you're likely to need a deposit of around £50k on your current salary to purchase a property of £150k and then add on to that stamp duty and solicitor fees....

dee4life2005

I'm in slightly similar position (slightly older at 34yrs old) programmer on 35k a year. I have a fairly sizeable amount of savings (about 65k at the moment), and have had an offer of 170k accepted for a house :j. Currently in the process of doing mortgage application for 135k with a 35k deposit (LTV is actually 84.7% as the house was only valued at 160k, but nice area victorian stone built etc.). It needs some work, so I`m keeping a chunk of savings and will need to buy furniture etc. although I'm not planning to do move in for about 6 months until it's full redecorated, rewired etc.

For that size of mortgage, the monthly mortgage is working out at around £700 when fixed for 3 years.

spender717

Age is irrelevant. I had a mortgage at 20/21. But I do wish I'd spent a few more years saving up for the biggest deposit I could manage. That way your interest rates will be lower due to a lower LTV.

Good luck!

phoebe1989seb

DS bought one month after his 22nd birthday - although he was extremely lucky to not be reliant on a mortgage (thanks to inheritance etc). He was buying with his GF though. That was in 2011 and this year they'll be selling up and getting a small mortgage (aged 24 & 25) in order to move up the ladder from a two bed flat.

Whilst they were both incredibly mature for their age & having not lived at home since going to uni - living in their own place has made them more responsible and awakened skills we were unaware they possessed. DS, for example has taught himself plumbing, plastering and tiling, giving the flat a makeover whilst holding down a job in a London law firm

Sounds like the OP is ready for the challenge - I'd say go for it

pcgtron

With savings of about ten grand you won't be able to buy in London. I had to put down 64 grand on my first place in London

MaxTheCat

nickgowdy wrote: »

At this moment, I have £5700 in a cash ISA and £4000 in a S&S ISA. I also have 2k in the bank. In my mind I wanted to put more cash into my cash ISA when the new tax year begins. Then I am going to evaluate the situation then. I am also trying to get more money as a programmer which is a work in progress :sad:

Would it be worth going to a mortgage broker now even though I haven't acquired all the money needed for a deposit?

Also I am looking at property at around 150-200k.

If I was you I'd be looking at increasing your earnings considerably first, 30k as a programmer in London is pathetic I was on more than that in 2000 when I moved to London and I wasn't contracting. You need to up your income and I recommend looking at contracting permie work is really not the way forwards. You will find that your ability to earn and save will run ahead of any house price increases and you will be able to buy a better property without shared ownership or silly help to buy traps.