Young First Time Buyer

zoe.broad

I'm looking to buy a house in the next few months, I have about 20k saved for a deposit and my parents are going to pay half towards the house and I'll pay them back as I have the mortgage off.

The house I'm looking at is about 140k but I'll only be earning about 13k next year as an apprentice and 2 years left on the apprenticeship scheme (with an almost guaranteed job at the end but currently a fixed term contract).

Think I'll be able to get enough of a mortgage?

saffy135

You need to go to a bank and get a decision in principle, they will assess how much you can afford and borrow. I would recommend you go direct to a Natwest branch, an advisor will be able to assess and work out if you have enough deposit for a house for 140K.

Good luck

spadoosh

Youre probably a bit off yet.

And it depends how you do the borrowing off parents things that will really dictate it.

The bank will only be interested if its classed as a gift, doing this will restrict your parents ability of getting the money back (legally if you choose not to pay) so risky on their part.

Realistically youre looking at £40-£70k mortgage. With £70k coming from your parents and £20k deposit from yourself youd only need a mortgage of £50k.

Their big on affordability now rather than income multipliers which means youll probably have to put a bit of effort in to researching what youre costs are going to be should you move out, assuming of course youre currently at home and benefitting from the benefits that bring (Reduced costs per person at the worst).

All of it together (fixed term contract, i suspect little in the way of a credit history?) and its getting more and more risky for a lender.

I think id wait until i completed the apprenticeship, started work properly and felt i was in the right place before looking at buying a house.

The good things is you can only try. If youre not going to get one now, youll probably be in the same boat until you complete the apprenticeship in which case any issues with failed applications will be out of the way.

zoe.broad

spadoosh wrote: »

Youre probably a bit off yet.

And it depends how you do the borrowing off parents things that will really dictate it.

The bank will only be interested if its classed as a gift, doing this will restrict your parents ability of getting the money back (legally if you choose not to pay) so risky on their part.

Realistically youre looking at £40-£70k mortgage. With £70k coming from your parents and £20k deposit from yourself youd only need a mortgage of £50k.

Their big on affordability now rather than income multipliers which means youll probably have to put a bit of effort in to researching what youre costs are going to be should you move out, assuming of course youre currently at home and benefitting from the benefits that bring (Reduced costs per person at the worst).

All of it together (fixed term contract, i suspect little in the way of a credit history?) and its getting more and more risky for a lender.

I think id wait until i completed the apprenticeship, started work properly and felt i was in the right place before looking at buying a house.

The good things is you can only try. If youre not going to get one now, youll probably be in the same boat until you complete the apprenticeship in which case any issues with failed applications will be out of the way.

Thanks for the response!

I spoke to my parents - they're planning to give me the money as a gift - saying they don't want it back as they plan to do the same for my brother

I haven't lived with my parents for about a year due to work but you're right with the little credit history

I'm going to Nationwide on Tuesday to talk about it