All you ever seem to hear about millennials is that they’re ‘snowflakes’, ‘entitled’ and ‘weak’ – although most of this information comes from Piers Morgan and his daily Twitter/TV rants. The fact is, millennials have drawn the short straw in the lottery of life – with lower earnings than the generation before, the burdens of global warming and navigating the property market; where rent is unaffordable and houses a lot cost more than they did 30 years ago. For millennials, the future looks a bit, for lack of a better word, desolate.
Luckily, we’re not pessimists here at Zing. Where there’s a will, there is a way. And there is a way to find yourself a house and a mortgage even if you have been branded a millennial. ‘Millennial mortgages’ aren’t easy to secure, but with the right help, we can guide you into the dark days of pre-property depression and into the light of home-ownership!
Everything you need to know about millennial mortgages is in this post.
Without jumping the gun and placing all the blame on a single thing, it’s a lot of different factors that have brought us to where we are now. The Metro found that over a 3rd of millennials will be in rented property by the time they reach retirement. So, what’s caused this? Well, like we’ve said, soaring property and rent prices most definitely haven’t helped. Mix this with low work earnings and add a sprinkle of ‘the difficulty of saving’, and you’ve got the recipe of how millennials ended up in this situation.
Whilst some good has come out of the past few years, like the abolishment of stamp duty and the introduction of Help-to-Buy ISAs, it’s largely still difficult for millennials to find the funds for a property, be it finding the deposit for a mortgage.
BUT, we’ve said it once and we’ll say it again, we’re not pessimists. Zing has got 6 handy tips to help you secure yourself your very own home, despite the odds!
If you’re struggling to imagine what size mortgage you could get with the deposit you have, and the income you receive, then it’s a good idea to sit down and work it out. Luckily, Zing has a handy mortgage calculator, to help you figure out what you could borrow. Visit our Mortgage Calculator, and see what you could afford to borrow.
When it comes to getting a mortgage and saving up for a deposit, two incomes are better than one. Yes, if you can find someone to half the mortgage and deposit with for a property, you may find it easier to borrow a mortgage. Whether it’s a friend or partner, teaming up on the mortgage front can make it easier to land yourself a property. You’ll have to sell eventually and split the cash, unless you want to live together forever… But, for the meantime, teaming up makes it easier.
Bringing forward a guarantor with your mortgage application is a great way to make it easier. There are Guarantor Mortgages out there, which allow someone to support your application and back you up. They have to agree that if you’re unable to make repayments, they’ll pay for you. If your income is low, or you don’t have a deposit (or have a small one) OR if you have poor credit – guarantor mortgages make it a little easier to secure yourself a mortgage.
Normally, you can queue all your bills up, so you pay them when you’re paid. So, to make saving a little easier why not treat it like a bill? Set up a direct debit, so when you’re paid, you transfer an amount you can afford each month into a savings account. It means that you’ll save and shouldn’t notice it leave month on month. This makes it easier to save for your house deposit and secure yourself a mortgage.
Okay, so this isn’t an easy option, but it’s an option. If you can find a way to downgrade or make your rent cheaper (by moving), you should. It will help you save up a little more towards your deposit. Why not ask the parents to move back in? They may charge you little or no rent, so you can secure your own home a little quicker.
If you’re finding it hard to navigate the mortgage market, enlist the help of an independent mortgage broker – like us! Our expert advisors here at Zing will be able to advise you on the best mortgage deals for you. Finding the right deal is crucial to securing a mortgage that you can afford and helps you buy your first-home.
If you’re looking for your first-home or a ‘millennial mortgage’, speak to one of the Zing team, and see how we could help.