Can you get a mortgage in your twenties?

While plenty of people might argue that ’30 is the new 20’, does that saying reflect in 20-somethings who want a mortgage of their own?

Plenty of people in their twenties see owning their own home as a pipe dream, but that does not have to be the case.

A mortgage will give you independence and security in the future. Banks are certainly open to lending, but whether they are open to lending to a person in their twenties depends on a number of things.

Your work life

Your job is the first thing any lender will ask about. You need to demonstrate consistency, a steady income, and security — so be ready to answer questions on the duration of your role, your income, and your future prospects.

Depending on the lender, you will need to provide proof that you are in a full-time position and no longer in the probation period. Further, you will need to provide payslips (approximately six months depending on the lender ).

What about those in temporary positions? Are they out of the mortgage game? Not necessarily, but a temporary position will affect the future security of any potential repayments, and this means you will most likely not qualify for a mortgage at this moment in time.

However, if you have an idea of when you will be getting that new contract or promotion, you can still approach your local advisor with this information and get some good wholesome advice to help you prepare for your mortgage application in the near future.

Your savings

Just like any other first time or next time buyer, you will need enough savings for a deposit. You will need to be able to show that you already have funds and that you are consistently saving.

But this could be a problem, as nearly one in five impulse buyers are aged between 18 and 29.

Your friends might have planned an impulsive mini-break, or night out on the tiles. It’s oh-so-tempting to just splash the cash – YOLO, right? But that’s not what your bank account likes to hear, and this little phrase isn’t so appealing on the Monday morning afterwards.

What to do? Many banks will offer ‘notice’ savings accounts, which means you cannot dip in as easily as you might like to – and this puts a much-needed barrier around your money to save you from yourself.

Any lender will want to see that your current income, outgoings, and savings will cover your mortgage repayments and your lifestyle (whatever that looks like ) and not leave you in dire straits.

Your support

While you may feel too grown up to bring your parents to a meeting with a potential mortgage provider, do bring them along. It will make things a lot easier for you. For one, they will have plenty of questions and instead of you repeating everything, they can get the answers right from the source.

Is it the right time for you?

This question is a tough one. So we don’t blame you for hemming and hawing. To help you figure this out, ask yourself these two questions first:

1. Are you ready for a serious commitment?

No one likes the question about where we see ourselves in five to 10 years (and a cheeky answer of ‘five years older’ definitely won’t do ). But this is very important. If you feel you may still want to go on a gap year or travel the US, then you may not be ready to buy yet.

Of course, you can always rent out your home and travel, but at least you will not lose the responsibility of the mortgage.

2. Can you afford what you want?

If you answered ‘yes’ to the first question, this one will test whether or not you can afford what you’d like. There is no point beating around the bush, buying somewhere like Dublin city is going to be tough.

You may find that instead of buying now, you are better off getting on a great savings plan for another couple of years until you have a more realistic chance at buying the type of property you would like. If you need help answering this question, just pop into an EBS branch and the team help you make the calculations.

Are you thinking of applying for your first mortgage in your twenties?

With your details in order, you stand the same chance as anyone else. It’s not about age, it’s about how your lifestyle, savings, and other financial circumstances will affect your future repayments.

Find out what you need to get mortgage approval at any age with a 30 minute mortgage meeting.

Get the ball rolling with EBS's First Time Buyer guide. You can also use the mortgage calculator to find out how much you may be able to borrow.

If you have any queries about opening an EBS savings account, call 1850 654 321 or email [email protected].

EBS Limited is regulated by the Central Bank of Ireland.

The content of this article is expressed in broad terms and is limited to general information purposes only. Readers should always seek professional advice to address issues arising in specific contexts and not seek to rely on the information in this article which does not constitute any form of advice or recommendation by EBS Limited.

EBS Limited neither accepts nor assumes any responsibility in relation to the contents of this article and excludes all warranties, undertakings and representations (either expressed or implied ) to the fullest extent permitted under applicable law.

Advertisement

 

Page generated in 0.0834 seconds.