Back in the late nineties it was fairly safe to assume that you would be stepping onto the housing ladder by the time you were in your mid-twenties. Jump forward 20 years and with cost of living rising, wages unfortunately not following suit and education fees increasing – this is leading to renters with minimal surplus income at the end of the month heading to very little or no savings to use as a deposit.
By 2025 it is estimated that only 26% of people aged 20-39 will own their own property. This group of people have been tagged with the nickname “Millenials”.
So how can we help you? There are various ways of getting onto the property ladder with as little as a 5% deposit (Help to Buy Scheme) or with the assistance of a Housing Association, a shared ownership mortgage may be suitable, however, these two alternatives are not the only options you have. Taking out a Joint Mortgage but remaining the sole proprietor (JMSP) could be a very viable possibility. Of course, standard underwriting conditions do apply but without having to repay an equity loan after 5 years (condition of Help to Buy Scheme) or pay partial rent on the share you didn’t buy (Shared Ownership mortgage) this will enable a family member assist you onto the property ladder.
You may also have heard of the term “bank of mum and dad” and with more lenders adopting the common sense approach with regards to maximum lending age –parents now have the option of releasing equity out of their own property to assist with your deposit.
As with any financial transaction – it is imperative that you seek independent financial advice to ascertain all of the terms and conditions; so if you are a “Millenial” and want to change that – contact us today.