Young people need extra help when it comes to buying their first home as new research reveals almost a third of 18-24 year olds struggle to get their finances under control.
With 50,000 properties purchased by younger first-time buyers via the government supported Help to Buy scheme over the past two years, it is clear a lot of people seek to get on the property ladder early on.
Having a strong desire to buy is not enough though. A recent study by price comparison site SoSmart Money revealed that 30 per cent of people aged 18-24 years old admit they do not have a decent handle on their personal finances.
SoSmart Money experts have shared their top tips for getting a mortgage:
- Make sure you are on the electoral roll. This is free and easy to do.
- If you’re not currently paying rent, put away a typical mortgage repayment into a savings account each month. Do this for at least three months before you make your application; this will demonstrate your ability to manage your finances.
- Always leave a balance in your account at the end of each month to demonstrate you do not spend every penny of your wages every month.
- If you are not buying for the next three months, get a credit card. Put one tank of petrol on it each month and have a Direct Debit set up to clear each month. This gives you credit at your home, shows you don’t spend every penny available to you and that you can pay it back.
- Check your credit file.
“When applying for a mortgage, make sure you get all your essential documents in order, ready for anyone who may ask for them, and always shop around. Talk to your bank and go to a whole of market mortgage broker to look at all of the options available to you,” Dean Jones, at SoSmart Money, said.
