21 y/o FTB - how's it looking?

cloakediguana

Hello!

I'm hoping to buy my first ever property this summer but have a few questions about how realistic this is.

I'm still an undergrad at the moment, but have a £35k full-time job lined up due to start in August. I'd be looking to buy and move in before my job starts, so would have no payslips. Is that going to be a big problem? Would a letter from my employer confirming my salary (or other proof) be worth anything in this regard?

I haven't worked out exactly how much I want the property to be worth and how much deposit I'm happy to pay. At the moment I'm currently thinking of a property in the £170-180k region, with a 20% deposit of around £34-36k. I've got more money in the bank to increase the deposit if needed, but was hoping to keep it in savings in case of future emergencies.

My credit report is squeaky clean. I have one credit card with a limit of £1,850. I'll spend around £800 on it each month, and always pay off in full by direct debit. I have a few overdrafts and have never stepped outside the limit. That said, I do live ~£1k inside the overdraft on my main student current account. This is because it's interest-free so makes sense savings-wise to dump it in a savings account for free money Should I stop doing this to improve my mortgage chances? 3 months of past bank statements seems to be a common requirement. While I know that I'm perfectly comfortable being in my overdraft because I know it's sitting in savings, I'm guessing the lender wouldn't!

In summary, good things:

• £35k salary
• 20% deposit (can increase this if it'll have a huge impact)
• credit reports demonstrate me using my CC responsibly

Potentially bad things:

• no payslips, want mortgage so I can move into new property before I start in my job
• 21 years old (is this a problem?)
• currently live in my overdraft, albeit responsibly

So, how's it looking? I plan to see a broker later on in the future, but thought I'd ask here for a preliminary check.


Thanks!

CKhalvashi

Apart from the OD, you seem to have done this responsibly. You will probably be asked to pay this off before completion as a term of the mortgage.

There are some mortgage advisors on this forum, who should be along with advice soon.

I bought my first UK property at 22, so good luck, and it is possible!

CK

Lokolo

Personally I wouldn't buy somewhere for a new job... what happens if you hate the job!?

Million_Percent

I don't think your age or the overdraft will affect things.

I guess the biggest problem will be the fact that you haven't even started your job yet. Mortgage providers assess the risk of you defaulting and part of that assessment is how stable your employment position is.

I doubt a mortgage provider will approve a mortgage and release funds before you even start the job. Certainly the letter you mention can only help your case but I suspect you may have to shop around to find a willing provider.

Are you moving to a new area for this job? If so I'd seriously consider renting first even for 6 months. That way you can be sure the job is right for you before committing and you'll have clear proof of employment and income.

cloakediguana

Lokolo wrote: »

Personally I wouldn't buy somewhere for a new job... what happens if you hate the job!?

I worked there on placement for 3 months last summer. I know I won't hate it, I wouldn't have taken the job otherwise!

sulphate

As stated by others most lenders need 3-6 payslips. Some will also not lend on a probationery period.

Your age I doubt would be a problem, I would expect the lender to ask where your deposit has come from, but this is standard in mortgage applications nowadays.

CKhalvashi

Ah, missed the bit about the job not starting yet.

Take the advice of above, and leave it for 3-6 months, so you know it's what you want to do, and where you want to be.

stephenni1971

I have seen undersriters accept people in new jobs where they have moved straight from their old job with no gap but you have never had a wage slip before so its going to be a no I suspect.

Once you have a at least 3 payslips behind you however things start to change so you may be better finding somewhere to rent for a while until you will be able to satisfy all the requirements.

dimbo61

You will need to either stay at home and commute to work for 6 months or rent a property for say 6 months while you start the new job and build up savings