Getting a mortgage at a young(ish) age?

princeofpounds

Regarding the question of interest rates - we don't know where they are likely to go, nor how high. But if you want a sense-check as to the risk you are taking, see what a long-term fixed rate mortgage would cost you for the same property (5-10 years, for example).


You don't actually have to take the fixed mortgage itself, but what that rate does is (simplistically) represent the market's best estimate of where future interest rates will be on average over the time period of the fix. So it's a useful buffer to consider even if you want a cheaper variable mortgage.


If you are confident you would live in the property for a long time (5yrs plus) and confident in your relationship, and the property suits your lifestyle, nothing wrong with going for a cheap property with a high % deposit. You might not cash in as much if prices rise yet more, compared to a bigger property, but you would have a very cheap mortgage rate thanks to the low LTV ratio.


One last point, of a more social nature. Your GF might say she has doubts about having children, but don't be surprised if, at some stage, she wants to give it a try anyway.


There are a lot of women out there who worry about their reproductive capability, and often for good reasons, but I have seen quite a few instances where supposed obstacles to pregnancy - particularly those raised during impressionable ages - have been built up bigger in their minds than they are in reality. Sometimes because they mentally discount medical assistance that could actually be effective, sometimes because they psychologically prepare themselves not to have children.


Two caveats - firstly I'm not saying this applies to her, I just mention it because there does appear to be an ambiguity in the way you have talked about it. And secondly, I'm sure men would react in a similar way, but they tend to find out about fertility problems later.

ViolaLass

A friend of mine was told she probably couldn't have kids. Didn't stop her being thrilled when she accidentally got pregnant.


Also, £375 rent for a £55k place (in decent nick?) with no upkeep to pay doesn't sound like that bad a deal.

greensalad

If you've got 21k I'd buy a house with around 10-15% deposit. As others have said, it makes sense to buy something larger and grow into it than buy something smaller and grow out of it.

10% seems to be fairly standard for FTB but 15% will help reduce mortgage repayments. I believe the really good rates start unlocking at 25%.

10% mortgage with £21k gives you over £200k to spend.

MrJB

greensalad wrote: »

If you've got 21k I'd buy a house with around 10-15% deposit. As others have said, it makes sense to buy something larger and grow into it than buy something smaller and grow out of it.

10% seems to be fairly standard for FTB but 15% will help reduce mortgage repayments. I believe the really good rates start unlocking at 25%.

10% mortgage with £21k gives you over £200k to spend.

Good luck passing the affordability for 200k on minimum wage!

greensalad

MrJB wrote: »

Good luck passing the affordability for 200k on minimum wage!

Ah course, I missed that bit.

Still I guess the point still stands. Buy the biggest you can afford now so you don't spend more time and money later on.