Mortgage for young first time buyers - advice please

ratfox2019 · 21 January 2019 at 2:15PM

Hi All,

My daughter who is 19 (20 in April) and her boyfriend who is already 20, are wanting to apply for a mortgage promise with the Halifax. They have their help to buy ISAs with the Halifax and both have bank accounts.

The question is, would they be better off waiting until my daughter is 20 before doing this?

They have a mobile phone contract each, my daughter has a credit card with the halifax which she has had for a year and only uses £100 a month for fuel on it and then pays it off.

Deposit wise they are nearly there for the house price range they want, and would be around the 85% - 90% LTV

Thank you in advance guys...its been a while since we applied for our mortgage, so want to try and give them the best advice.

spadoosh · 21 January 2019 at 2:26PM

If shes going to wait until shes 20, she might as well as wait until she is 21.. or 22 or 87.....

What do you think the benefit of waiting would be?

ratfox2019 · 21 January 2019 at 2:32PM

I just wondered if the fact that she was still in her 'teens' made any difference to whether the bank would consider her too young?

spadoosh · 21 January 2019 at 2:54PM

No difference at all. You can argue there will be a slight benefit of more credit history but the reality is between being 19 and 364 days old and being 20 is of no significance.

Lenders tend to offer products to anyone aged between 18 and 65 providing they meet their criteria. You can borrow beyond 65 but its less common.

ACG · 21 January 2019 at 3:15PM

Funny you should ask this question. I used to work for a lender and there was an underwriter who was horrible. You always knew if she picked up your case you were in for a hard time or it would get declined.

I remember her declining a case because the sole applicant was 18 and part of the deposit was gifted.

We got it overturned but I had to appeal to her and then her boss. Her boss sided with me when I asked her where in our criteria it stated one or all applicants had to be over 18.

However, assuming you do not get a miserable old bat underwriting the application, your daughter and partner should be fine. Not to sound condescending but as they are both young if one is putting down a larger deposit it might be worth sorting out what ownership they both have or putting a declaration of trust in place that states who gets what.

There are plenty of stories on here where it all goes wrong and it is unfair that one person gets 50% when they paid all the deposit and the monthly bills etc.

spadoosh · 21 January 2019 at 4:36PM

Young people owning property is alien to most.

I didnt pay my window cleaner for like 5 months because every time he knocked on the door he asked if my mum was in:cool:. Then he spent 6 months trying every other day to collect the cash, which is something alien to young people. Were all good now though.... he started taking paypal. :rotfl:

Mortgage for young first time buyers - advice please

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