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By Pete Mugleston | Mortgage Advisor

Pete has been a mortgage advisor for over 10 years, and is regularly cited in both trade and national press.

Updated: 12th June 2020*

Whatever your financial situation, there’s no doubt that getting a mortgage as a young, would-be buyer is a milestone achievement.

We get lots of calls from young people who are ready to take out a mortgage and need some guidance as to how to get the best deal.

The mortgage experts we work with have enjoyed helping hundreds of young people all over the country successfully secure their first home. Experts know that, despite affordability or age restrictions, when it comes to negotiating a good mortgage you have one massive advantage – time is on your side!

In this article, we’ll cover…

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Are there mortgage for young people?

Yes! In this age of ever-increasing housing prices, getting a deposit together for a mortgage as a young person can take some creativity and determination.

Getting a good deal in early stages of the mortgage search involves persevering with market research and getting advice from an expert mortgage advisor for young people.

When you’re ready to take the leap onto the property ladder, you’ll need to find the best lender for your affordability levels and make sure your calculations for monthly repayments and mortgage terms are a good match for your financial situation.

Am I too young for a mortgage?

Young buyers may face age limits.

For example, many lenders have a minimum age of 18 for residential mortgages. For a buy to let lender, there are lenders who will lend at age 18, but for many the minimum age is often set at 21.

If you’re wondering if you are too young to get the mortgage of your choice, a little market research and inquiring into age limits with various lenders will give you an idea of what’s on the market.

For the best results, call Online Mortgage Advisor on 0808 189 2301 to speak to an expert mortgage advisor who can save you time, money and potential marks on your credit file by taking you straight to the lenders who match your needs.

How to get a mortgage at a young age

There are plenty of good options available for buyers interested in getting a mortgage at a young age.

To ensure you take full advantage of your financial situation, you’ll need to shop around and compare lenders’ deals.

Understanding the long-term implications of a mortgage and how much you can comfortably pay back over many years is key to successfully negotiating a good mortgage deal. 

At Online Mortgage Advisor we work with brokers who help young people get access to top providers every day. When it comes to getting a mortgage, there’s simply no substitute for experience in finding the best deals, planning your repayments, and negotiating the UK housing market.

Mortgage schemes for young people

Many mortgage providers will offer special mortgage schemes for young people, including…

  • Lloyd’s Lend a Hand mortgage – No deposit required. Instead, a family member can put down 10% of the purchase price of your home into a 3 year fixed-term savings account.
  • Yorkshire Building Society Offset Plus Deal – This enables a helper to offset their savings against the young person’s mortgage balance to secure better interest rates.
  • Barclays offers the Family Springboard Mortgage – this scheme allows you to borrow the full purchase price of your home because your helper provides 10% as security for five years.
  • Nationwide’s Family Deposit Mortgage – a helper can borrow against their own home, and gift that money to the young family member as a mortgage deposit.

Another way to get a foothold on the property ladder if you’re a first-time buyer with limited resources is to use a Joint Applicant Sole Proprietor Mortgage. This can be a great way for parents to help youngsters boost their affordability and get on the ladder.

These are just a few examples of the many good young person’s mortgage schemes on the market.

To get a full overview of which schemes may be right for your situation, call Online Mortgage Advisor on 0808 189 2301 or make an enquiry and we’ll connect you to an expert mortgage advisor.

Mortgages for young families

Getting a mortgage as a young family is important to securing your children’s financial future. However, some lenders may take your childcare or preschool costs into consideration. This could result in having your mortgage application declined, or being offered a smaller sized loan.

The good news is that there are several ways you can boost your chances of getting a good mortgage deal.

For the best results, it’s best not to rely on the bank you’ve been a long-term client with, shop around and search all offers on the market. If you’re unsure of which deals may be best suited to a young family, it may be worth speaking to an expert mortgage advisor. An advisor will take the time to understand your financial situation in its entirety and can then connect you directly with lenders who will offer you the lowest comparative interest rates.

Mortgages for young professionals

Many providers will offer special mortgage loans for a young professional in the hopes they will rapidly progress in their careers and thus have increased earning potential.

Some lenders will offer a good mortgage interest rate to young professionals in certain professions, such as: pilots, solicitors, vets, dentists, doctors, accountants, architects, pharmacists, and chartered surveyors.

There may be additional stipulations such as a minimum annual income requirement and having been in the profession for a minimum of five years. Although mortgages for young professionals may not always offer an improved mortgage rate, they may be more generous in the maximum mortgage size.

Mortgages for young couples

There are several mortgage schemes practically designed to help a young couple move forward with their property purchase.

If you get a mortgage as young couple, you could get a larger mortgage than that which a single buyer has access to. A joint mortgage is a mortgage in which everyone named on the mortgage is responsible for repayment.

As joint tenants, lenders can chase you for the whole mortgage payment, irrespective of what you’ve agreed your share of the payment is. Whilst you can agree between yourselves what your contributions are, it’s of no concern to the lender.

To legally own different percentages of a property, you need a tenants in common agreement. If you wish to get advice on this kind of arrangement, get in touch and we’ll connect you with one of the experts we work with.

Joint mortgages are available to young couples, whether you’re married, unmarried, or in a civil partnership. 

Buy to let mortgage for young people

Interest fees for buy to let mortgages are often higher than rates on residential mortgages. At 25%, the minimum deposit requirements are also no small ask for a young person.

This is because a buy to let mortgage is often seen as a riskier option. However, some lenders offer schemes to encourage young buyers on their way to getting a buy to let mortgage.

Purchasing the property on a joint account with a parent, or getting a guarantor mortgage, are some of the options available to help young buy to let buyers.

Best mortgage lenders for young buyers

It’s important young buyers get the support they need to climb the property ladder and move away from wasting hard earned money in a rented property.

A number of high street lenders including Lloyd’s, Barclays, and Nationwide, offer intergenerational mortgage schemes for young people. But in this age of FinTech innovation, there are also increasing numbers of new banks and joint ownership schemes such as Proportunity, that help young people onto the market.

Speak to an expert advisor today!

In the race to figure out how to get the best mortgage as a young person, you may find all the various options and schemes confusing to navigate. To ensure you come out first with a top mortgage deal that is secure and convenient over the long-term, it’s best to get help from an expert in mortgages for young adults.

Call 0808 189 2301 or make an enquiry here. Then sit back and relax while we do all the hard work of finding an expert mortgage advisor who is right for your situation. We don’t charge a fee and there’s absolutely no further obligation or marks to your credit rating.

Updated: 12th June 2020
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FCA disclaimer

*Based on our research, the content contained in this article is accurate as of most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The info on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs. Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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