95% Mortgage for 19 year old - Advice

Tabieth

ReadySteadyPop said:

Tabieth said:

ReadySteadyPop said:

Tabieth said:

My advice (FWIF based on knowing very little) is not to buy at 19. Instead save money for a bigger deposit and focus on university / work and spreading one’s wings and not being at school. Flat / house sharing is fun at that age and is a rite of passage. 

And 60k for a flat is very cheap. I’m assuming it must be a studio flat with a short lease and maybe not in a great location.  That’s not a great buy and certainly isn’t a good investment. 

Very few flats are a good investment now, a cheap flat (low debt) could be a good idea in this environment though.

https://www.investmentweek.co.uk/news-analysis/4516105/uk-gilts-truss-ousting-levels-reeves-speculative-market-marred-decisions-former-government

There must be a reason why it’s so incredibly cheap. Whatever that reason is, it’s unlikely to be a good investment. 

I believe they are buying it to live in, not as an investment. 60k is a reasonable chunk of debt for a 19 year old, especially with higher rates, any higher than that could get uncomfortable if mortgage rates spike.

But there must be something seriously and significantly wrong with the flat if it’s marketed at only 60k. None of us know, but I can’t imagine a flat being sold for 60k in 2025 would be comfortable / nice / safe to live in. I can only assume it needs masses of work and cash investment to make good. Maybe this 19 year old has the money (and the time and inclination) to do this but I suspect most don’t. 

ReadySteadyPop

Tabieth said:

ReadySteadyPop said:

Tabieth said:

ReadySteadyPop said:

Tabieth said:

My advice (FWIF based on knowing very little) is not to buy at 19. Instead save money for a bigger deposit and focus on university / work and spreading one’s wings and not being at school. Flat / house sharing is fun at that age and is a rite of passage. 

And 60k for a flat is very cheap. I’m assuming it must be a studio flat with a short lease and maybe not in a great location.  That’s not a great buy and certainly isn’t a good investment. 

Very few flats are a good investment now, a cheap flat (low debt) could be a good idea in this environment though.

https://www.investmentweek.co.uk/news-analysis/4516105/uk-gilts-truss-ousting-levels-reeves-speculative-market-marred-decisions-former-government

There must be a reason why it’s so incredibly cheap. Whatever that reason is, it’s unlikely to be a good investment. 

I believe they are buying it to live in, not as an investment. 60k is a reasonable chunk of debt for a 19 year old, especially with higher rates, any higher than that could get uncomfortable if mortgage rates spike.

But there must be something seriously and significantly wrong with the flat if it’s marketed at only 60k. None of us know, but I can’t imagine a flat being sold for 60k in 2025 would be comfortable / nice / safe to live in. I can only assume it needs masses of work and cash investment to make good. Maybe this 19 year old has the money (and the time and inclination) to do this but I suspect most don’t. 

Maybe the OP can let us know? The fact that the 19 year old is struggling to get a 5% deposit mortgage on such a cheap flat though should sound alarm bells for flat sellers everywhere?

Hoenir

ReadySteadyPop said:

Tabieth said:

ReadySteadyPop said:

Tabieth said:

ReadySteadyPop said:

Tabieth said:

My advice (FWIF based on knowing very little) is not to buy at 19. Instead save money for a bigger deposit and focus on university / work and spreading one’s wings and not being at school. Flat / house sharing is fun at that age and is a rite of passage. 

And 60k for a flat is very cheap. I’m assuming it must be a studio flat with a short lease and maybe not in a great location.  That’s not a great buy and certainly isn’t a good investment. 

Very few flats are a good investment now, a cheap flat (low debt) could be a good idea in this environment though.

https://www.investmentweek.co.uk/news-analysis/4516105/uk-gilts-truss-ousting-levels-reeves-speculative-market-marred-decisions-former-government

There must be a reason why it’s so incredibly cheap. Whatever that reason is, it’s unlikely to be a good investment. 

I believe they are buying it to live in, not as an investment. 60k is a reasonable chunk of debt for a 19 year old, especially with higher rates, any higher than that could get uncomfortable if mortgage rates spike.

But there must be something seriously and significantly wrong with the flat if it’s marketed at only 60k. None of us know, but I can’t imagine a flat being sold for 60k in 2025 would be comfortable / nice / safe to live in. I can only assume it needs masses of work and cash investment to make good. Maybe this 19 year old has the money (and the time and inclination) to do this but I suspect most don’t. 

Maybe the OP can let us know? The fact that the 19 year old is struggling to get a 5% deposit mortgage on such a cheap flat though should sound alarm bells for flat sellers everywhere?

Could simply be that this isn't the majority of lenders target market for 95% mortgages. Not economically or commercially viable.  

ReadySteadyPop

Hoenir said:

ReadySteadyPop said:

Tabieth said:

ReadySteadyPop said:

Tabieth said:

ReadySteadyPop said:

Tabieth said:

My advice (FWIF based on knowing very little) is not to buy at 19. Instead save money for a bigger deposit and focus on university / work and spreading one’s wings and not being at school. Flat / house sharing is fun at that age and is a rite of passage. 

And 60k for a flat is very cheap. I’m assuming it must be a studio flat with a short lease and maybe not in a great location.  That’s not a great buy and certainly isn’t a good investment. 

Very few flats are a good investment now, a cheap flat (low debt) could be a good idea in this environment though.

https://www.investmentweek.co.uk/news-analysis/4516105/uk-gilts-truss-ousting-levels-reeves-speculative-market-marred-decisions-former-government

There must be a reason why it’s so incredibly cheap. Whatever that reason is, it’s unlikely to be a good investment. 

I believe they are buying it to live in, not as an investment. 60k is a reasonable chunk of debt for a 19 year old, especially with higher rates, any higher than that could get uncomfortable if mortgage rates spike.

But there must be something seriously and significantly wrong with the flat if it’s marketed at only 60k. None of us know, but I can’t imagine a flat being sold for 60k in 2025 would be comfortable / nice / safe to live in. I can only assume it needs masses of work and cash investment to make good. Maybe this 19 year old has the money (and the time and inclination) to do this but I suspect most don’t. 

Maybe the OP can let us know? The fact that the 19 year old is struggling to get a 5% deposit mortgage on such a cheap flat though should sound alarm bells for flat sellers everywhere?

Could simply be that this isn't the majority of lenders target market for 95% mortgages. Not economically or commercially viable.  

 A debt is a debt, they will make money on it same as any other debt owed to them?

RHemmings

ReadySteadyPop said:

Tabieth said:

ReadySteadyPop said:

Tabieth said:

ReadySteadyPop said:

Tabieth said:

My advice (FWIF based on knowing very little) is not to buy at 19. Instead save money for a bigger deposit and focus on university / work and spreading one’s wings and not being at school. Flat / house sharing is fun at that age and is a rite of passage. 

And 60k for a flat is very cheap. I’m assuming it must be a studio flat with a short lease and maybe not in a great location.  That’s not a great buy and certainly isn’t a good investment. 

Very few flats are a good investment now, a cheap flat (low debt) could be a good idea in this environment though.

https://www.investmentweek.co.uk/news-analysis/4516105/uk-gilts-truss-ousting-levels-reeves-speculative-market-marred-decisions-former-government

There must be a reason why it’s so incredibly cheap. Whatever that reason is, it’s unlikely to be a good investment. 

I believe they are buying it to live in, not as an investment. 60k is a reasonable chunk of debt for a 19 year old, especially with higher rates, any higher than that could get uncomfortable if mortgage rates spike.

But there must be something seriously and significantly wrong with the flat if it’s marketed at only 60k. None of us know, but I can’t imagine a flat being sold for 60k in 2025 would be comfortable / nice / safe to live in. I can only assume it needs masses of work and cash investment to make good. Maybe this 19 year old has the money (and the time and inclination) to do this but I suspect most don’t. 

Maybe the OP can let us know? The fact that the 19 year old is struggling to get a 5% deposit mortgage on such a cheap flat though should sound alarm bells for flat sellers everywhere?

As the mortgage market is generally growing compared to a year ago, it seems more likely that the difficulties in getting a 95% mortgage by the 19 year old mentioned in the OP are specific to them. Not a sign that mortgage finance is harder to obtain in general. So, no need to 'sound alarm bells for flat sellers everywhere'. 

https://www.fca.org.uk/data/mortgage-lending-statistics

Bigphil1474

Had a look at the City of Leeds - there are 43 properties listed in Leeds for £60k or less, although some are plots of land and some are not really places to live. Leaves about 13 places to buy and live in. Had a look and I'd say 10 look to be in reasonable condition and maybe 3 I'd consider buying if I was looking at that end of the market. Cheapest is £45k, one bed flat in a converted terraced house in Armley with an 82 year lease. Not an area I'd want to live in myself, but I've lived in worse areas in the past and lots of people  do live there. https://www.rightmove.co.uk/properties/161928938#/floorplan?activePlan=1&channel=RES_BUY

Not sure why people think that every house or flat you buy has to be hundreds of thousands of pounds to be any good, especially when the OP is 19 years old. I would second the suggestion of waiting though. Even though he is 19 and on a steady income now, he won't have been on it long so not much for the banks to work with. I'd also suggest apartment/flat living is something you need to try before you buy. I lived in a flat for a year in my early years - hated it. 

RHemmings

Bigphil1474 said:

Had a look at the City of Leeds - there are 43 properties listed in Leeds for £60k or less, although some are plots of land and some are not really places to live. Leaves about 13 places to buy and live in. Had a look and I'd say 10 look to be in reasonable condition and maybe 3 I'd consider buying if I was looking at that end of the market. Cheapest is £45k, one bed flat in a converted terraced house in Armley with an 82 year lease. Not an area I'd want to live in myself, but I've lived in worse areas in the past and lots of people  do live there. https://www.rightmove.co.uk/properties/161928938#/floorplan?activePlan=1&channel=RES_BUY

Not sure why people think that every house or flat you buy has to be hundreds of thousands of pounds to be any good, especially when the OP is 19 years old. I would second the suggestion of waiting though. Even though he is 19 and on a steady income now, he won't have been on it long so not much for the banks to work with. I'd also suggest apartment/flat living is something you need to try before you buy. I lived in a flat for a year in my early years - hated it. 

For semi-random reasons I tend to look to Sunderland as examples of cheap houses. Here is a 4 bed terraced freehold home for £49.5k. 

https://www.rightmove.co.uk/properties/162739622#/?channel=RES_BUY

But, it's terrible. It almost is bad enough for the 'New Have A Look At This' thread, but not quite.

This is a bit more liveable, at £53k. https://www.rightmove.co.uk/properties/155985902#/?channel=RES_BUY

I've searched for houses in Sunderland repeatedly. It seems to me that many of the houses for sale there are houses that I remember seeing some time before. Even those that say they are newly listed. (Changed EAs?) 

ReadySteadyPop

RHemmings said:

ReadySteadyPop said:

Tabieth said:

ReadySteadyPop said:

Tabieth said:

ReadySteadyPop said:

Tabieth said:

My advice (FWIF based on knowing very little) is not to buy at 19. Instead save money for a bigger deposit and focus on university / work and spreading one’s wings and not being at school. Flat / house sharing is fun at that age and is a rite of passage. 

And 60k for a flat is very cheap. I’m assuming it must be a studio flat with a short lease and maybe not in a great location.  That’s not a great buy and certainly isn’t a good investment. 

Very few flats are a good investment now, a cheap flat (low debt) could be a good idea in this environment though.

https://www.investmentweek.co.uk/news-analysis/4516105/uk-gilts-truss-ousting-levels-reeves-speculative-market-marred-decisions-former-government

There must be a reason why it’s so incredibly cheap. Whatever that reason is, it’s unlikely to be a good investment. 

I believe they are buying it to live in, not as an investment. 60k is a reasonable chunk of debt for a 19 year old, especially with higher rates, any higher than that could get uncomfortable if mortgage rates spike.

But there must be something seriously and significantly wrong with the flat if it’s marketed at only 60k. None of us know, but I can’t imagine a flat being sold for 60k in 2025 would be comfortable / nice / safe to live in. I can only assume it needs masses of work and cash investment to make good. Maybe this 19 year old has the money (and the time and inclination) to do this but I suspect most don’t. 

Maybe the OP can let us know? The fact that the 19 year old is struggling to get a 5% deposit mortgage on such a cheap flat though should sound alarm bells for flat sellers everywhere?

As the mortgage market is generally growing compared to a year ago, it seems more likely that the difficulties in getting a 95% mortgage by the 19 year old mentioned in the OP are specific to them. Not a sign that mortgage finance is harder to obtain in general. So, no need to 'sound alarm bells for flat sellers everywhere'. 

https://www.fca.org.uk/data/mortgage-lending-statistics

That wasn`t really my meaning, mortgage finance is becoming easier to access because house sales are at multi-decade lows, the banks are competing to sell mortgage debt now, BUT the fact that the bank thinks this flat requires a 10% deposit not 5% means they are expecting it to drop in price.

RHemmings

ReadySteadyPop said:

RHemmings said:

ReadySteadyPop said:

Tabieth said:

ReadySteadyPop said:

Tabieth said:

ReadySteadyPop said:

Tabieth said:

My advice (FWIF based on knowing very little) is not to buy at 19. Instead save money for a bigger deposit and focus on university / work and spreading one’s wings and not being at school. Flat / house sharing is fun at that age and is a rite of passage. 

And 60k for a flat is very cheap. I’m assuming it must be a studio flat with a short lease and maybe not in a great location.  That’s not a great buy and certainly isn’t a good investment. 

Very few flats are a good investment now, a cheap flat (low debt) could be a good idea in this environment though.

https://www.investmentweek.co.uk/news-analysis/4516105/uk-gilts-truss-ousting-levels-reeves-speculative-market-marred-decisions-former-government

There must be a reason why it’s so incredibly cheap. Whatever that reason is, it’s unlikely to be a good investment. 

I believe they are buying it to live in, not as an investment. 60k is a reasonable chunk of debt for a 19 year old, especially with higher rates, any higher than that could get uncomfortable if mortgage rates spike.

But there must be something seriously and significantly wrong with the flat if it’s marketed at only 60k. None of us know, but I can’t imagine a flat being sold for 60k in 2025 would be comfortable / nice / safe to live in. I can only assume it needs masses of work and cash investment to make good. Maybe this 19 year old has the money (and the time and inclination) to do this but I suspect most don’t. 

Maybe the OP can let us know? The fact that the 19 year old is struggling to get a 5% deposit mortgage on such a cheap flat though should sound alarm bells for flat sellers everywhere?

As the mortgage market is generally growing compared to a year ago, it seems more likely that the difficulties in getting a 95% mortgage by the 19 year old mentioned in the OP are specific to them. Not a sign that mortgage finance is harder to obtain in general. So, no need to 'sound alarm bells for flat sellers everywhere'. 

https://www.fca.org.uk/data/mortgage-lending-statistics

That wasn`t really my meaning, mortgage finance is becoming easier to access because house sales are at multi-decade lows, the banks are competing to sell mortgage debt now, BUT the fact that the bank thinks this flat requires a 10% deposit not 5% means they are expecting it to drop in price.

Why do you keep on posting things that are wrong, and can easily be shown to be wrong? House sales are not at multi-decade lows. 

https://www.zoopla.co.uk/discover/property-news/zoopla-house-price-index-may-2025/

6% more agreed sales in May 2025 than a year ago

The shift to higher mortgage rates over the last 3 years has impacted growth rates for housing sales and mortgage applications. Sales declined sharply in 2022/23 as mortgage rates reached 6%.

The growth in sales rebounded over 2024 as mortgage rates fell, which also boosted demand for mortgages. However, the growth in sales and mortgage approvals has slowed in recent months to more sustainable levels. 

Sales have now started to increase once again as confidence improves and those using a mortgage are able to borrow up to 20% more due to changes in affordability testing.

There are different statistics from different sources (I would expect based on different measures). E.g. here May2025 is down compared to May 2024. But, even this link says that house sales are 42% up compared to April 2024.

https://www.gov.uk/government/statistics/monthly-property-transactions-completed-in-the-uk-with-value-40000-or-above/uk-monthly-property-transactions-commentary--2

House sales were much lower in Feb 2009, and May 2020. See:

https://www.statista.com/statistics/290623/uk-housing-market-monthly-sales-volumes/

You have no idea as to the reason that the bank wants a 10% deposit rather than 5%. As others have mentioned, the bank will look at a number of factors including the history and finances of the borrower themselves. And they will or won't allow certain mortgages based on that. You don't know that the bank is expecting the price to fall.

Altior

navidson said:

_Penny_Dreadful said:

navidson said:

Hello all - My stepson is currently exploring the possibility of moving out of the home and getting a mortgage on a flat with his partner.  He has steady full-time employment and earns a decent amount - and his credit score is over 900.

He has enough of a deposit saved up to cover 5% of the property - and has started to look at signing up for a 95% mortgage.  However, he has been discouraged whenever he has tried to make an application as each bank has only offered the 90% option (even though they stated that 95% would be available before application was made)

Is anybody aware of any banks/lenders that currently offer 95% mortgage deals for young people?  He has tried using the usual aggregators (Compare the Market etc) but they seem to have led him down the garden path with their suggestions?

Thanks in advance!

My guess is that whilst mortgage lenders do offer 95% LTV mortgages your step son doesn’t pass affordability. I’m not sure of his employment situation but I imagine as a 19 year old his salary isn’t that high, or at least not high enough to sustain a 95% LTV mortgage. 

He earns around £25k and is looking to purchase a £60k flat - so would require around a 55k mortgage

5% is obviously only £3K. Very little actual cash. So saving another £3K whilst 'living at home' should be a breeze.

Do you know how much actual cash they have?

They'll need £K's to set up a brand new household practically from scratch. In addition to all the associated expenses of purchasing a property.