More couples move-in together sooner to save money
With the current housing crisis, the reality of the situation is that if you can’t get help from your parents to get onto the property ladder, you will likely need to find a partner, or a very good friend, to buy jointly. This causes inequality within the generation of future home-owners and really decides who will succeed and who will fail.
This article does not constitute advice. Professional advice should be taken prior to acting on any part of it.
Saving for a deposit is no easy measure
Statistics show that there are now more people than any time in 17 years, living under the same roof, as more young adults live at home to save for a deposit.
As society has evolved to be more focused on careers, travel and personal fulfilment, people are marrying later. However, despite the increase in singles, the number of people living alone that are under the age of 65 has fallen dramatically in the past 4-5 years, according to government data.
What are the options for young people?
Parents are becoming a major financial lender in their own right. With the so-called “Bank of Mum & Dad” lending the equivalent each year to that of the UK’s 10th largest bank.
However, not everyone’s parents are in the position to provide money to their children, even with the best intentions.
Therefore, young people have limited choices:
- Continue to rent. Although saving a deposit is then much slower.
- Move back to the family home, if this is even an option. Saving for a deposit may still be slow if planning to buy alone.
- Find a partner, and rent together perhaps sooner than planned, simply to save money for a deposit
- Find a trusted friend, or group of friends, that have the same goals and buy together
Chances of getting a mortgage on your own
Principally, there is the fact of saving for a deposit. Secondly, there is the fact of getting a mortgage.
Here, low earners will be part of the group of young adults that may seriously struggle to get onto the property ladder.
If there is the option to buy jointly, as a couple, then this will improve the chances of approval, based on joint income and joint affordability. It also increases the type of property that could be realised, for example a 2-bed rather than a 1-bed or studio.
This again leaves young couples in the position of moving-in together relatively soon into the relationship, simply to increase their buying power.
Mortgages for doctors and dentists
Typically, doctors and dentists earn a reasonable salary so there are mortgage options available. This goes for couples and for those wanting to buy alone.
It’s important to put forward a solid application though, based on well-managed debts, a good credit score, a reasonable deposit and clear affordability.
Get a mortgage review with Chris
If you are looking to buy a home this year and would like to discuss your options, call to speak with specialist mortgage adviser, Chris.
Tel: 01403 780 770
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