07 Sep 2018
How can Millennials get a Mortgage?
Are you looking for a ‘millennial mortgage’? Can’t seem to get your foot on the property ladder? Find out how millennials can get a mortgage, in our post.
Millennials get a lot of stick. Especially when they’ve been handed a pretty bad deal already… They’re earning less than the generation before, sorting out climate change caused by generations before, being attacked by ol’ Piers Morgan on Good Morning Britain for being ‘weak’ and ‘entitled’, and never ever ever being able to afford a property, being doomed to rent until millennials reach their retirement years.
Yes, it can all seem like doom and gloom if you’re a millennial, however, luckily for you, MO’s here to guide you through. We’ve got some great tips to guide you through the mortgage minefield and finally get you moved out of your childhood bedroom and into your first home. (You can thank us later).
Here’s all you need to know about how millennials can get a mortgage.
Why can’t millennials get a mortgage?
It’s sad to see, but earlier this year it was reported in the Metro, that up to a third of millennials will still be renting property by the time they start cashing in their pensions. Paired with the fact that house prices have soared so greatly over the years whilst work pay has plummeted, it looks bleak to say the least. Rent prices aren’t cheap either, as they seem to be constantly going up year on year.
It’s not all bad though! Stamp duty was abolished for first-time buyers and there are now help-to-buy schemes, to help raise the money you need for a deposit. But, it can take a while to save…
However, we’re not here to tell you how appalling it all is, we’re here to help! So, how could millennials land themselves a mortgage? We’ve got 6 tips to help you out, below.
How to land a ‘Millennial Mortgage’
1. Calculate
So, if you’re wondering what sort of mortgage you can actually afford, you’ll probably need a mortgage calculator. There’s so many around online, that can help you weigh up your earnings and deposit you have, to help you figure out what sort of mortgage you can afford. It’s great to know where you stand before getting a mortgage and see what you can afford.
2. Recruit a ‘Team’
Many people find that by teaming up with a friend or partner for a mortgage application is handy. Because 2 incomes are better than 1. You’ll be able to get a better mortgage, for a better home and half the payments. If you're buying with a friend, when you’re both sorted, sell the property and split the money.
3. Guarantor Mortgages
There are ways to have someone back your application and support it as your mortgage guarantor. They’ll be able to sign and agree that should you be unable to make any repayments on your mortgage, they’ll cover the costs for you. It’s a great way to get a mortgage especially if you have little or no deposit, a low income or even a credit score that isn’t great. Find out more about Guarantor Mortgages, in our article.
4. Treat Savings like a Bill
We’ll be the first to admit that saving is never easy. Sometimes, it’s hard to plan and put aside money each month. However, if you were to treat your savings like paying a bill, wouldn’t it be easier? Set up a direct debit each month when you receive your wages, to take a reasonable amount out (that won’t leave you broke at the end of the month) to be paid directly into a savings account. It’s a great way of saving for a deposit.
5. Reduce your Rent
Easier said than done, right? However, if you can find a cheaper place to rent or even move in with your parents for a bit, you’ll be able to save more to add to the deposit fund each month.
6. Find the Right Deal
Finally, if you can find the right mortgage deal for your exact situation, that would be great. Wouldn’t it? Well, fortunately you’re in the right place to find the right deal. At MO, we compare 1000s of mortgages from 100s of lenders, to find you a mortgage tailored to your exact situation. If you’re looking to find a mortgage that works for you, look no further.
Use Mortgages.Online to find your millennial mortgage.
