Millennial Mortgages

Published 08/10/2019

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Over the last decade millennials have received a lot of flak for relying on the Bank of Mum and Dad for helping them onto the property ladder. But in 1980, the average property cost was £18,377*. Now it's 12 times higher at £228,903, according to the Office for National Statistics.

By comparison, the average annual pay for men in 1980 was around £5,000 - so a house cost just under four times your annual salary. Today, the average full-time salary in the UK is just over £27,000 per year – so a home in England and Wales costs about 8.5 times the average annual salary. So millennials can’t be blamed for rising house costs! But homeownership isn’t impossible. Here’s how you can make your dream a reality...

Getting your deposit together is the first step towards home ownership, but it's also often the hardest. Here's everything you need to know about deposits.

Our savings calculator will help you work out how much, or for how long, you'd need to save to reach a set amount.

You'll want to make sure your credit score is as high as possible. See how you can improve yours.

Take a look at our rundown of some of the options available to first time buyers which can help turn the dream of owning a property into a reality.

I’m having trouble building my deposit, what else can I do?

We're not going to tell you to give up your avocados (but you probably have). If you’re still finding it difficult to save up a large deposit don’t worry; here are a number of ways you could get onto the ladder with a smaller deposit.

'100%' mortgages - While this still requires help from the Bank of Mum and Dad, your parents won’t actually be handing their money over to you as for some deals as it will be held in a fixed-rate savings account. This means they act as your guarantor.

Shared ownership - If you chose Shared Ownership this would mean you owned a percentage of a property and the rest would be owned by a housing association. This is really helpful if the property prices in your area break your budget.

Help to Buy equity loan - If you live in England, under the scheme, which is only available for new-build properties, you need to put down a 5% deposit. The Government will lend you a further 20% (40% in London) of the property price interest-free for the first five years. That means you'll only need a mortgage for the remaining 75% of the property price, reducing the amount you have to pay each month.

By hook or by crook I’ve got my 5% deposit or more, what now?

Longer mortgage terms - If you’re worried about affordability it’s possible to increase the term to reduce the cost of monthly mortgage payments. Of course you have to take in to consideration the interest over that extended term which will be much more expensive overall.

Get going with a broker - Most brokers charge a fee for their service, but at L&C we don't do that. We can scour the market to find the right mortgage deal for your situation, whether you have a small deposit or a large one. And we'll be with you from beginning to end, taking care of the paperwork.

Give us a call on 0808 292 3434 or start your journey onto the property ladder here.

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Think carefully before securing other debts against your home. Your home or property may be repossessed if you do not keep up repayments on your mortgage.

We're here to offer our customers excellent fee free mortgage advice. Our expert advisers will help you secure the best mortgage deal whether you're a first time buyer, remortgaging your home, buying to let or moving up the property ladder. We'll help you throughout the mortgage process – no hidden costs or surprises, just straightforward, honest, mortgage advice.

Representative example A mortgage of £218,181 payable over 24 years, initially on a fixed rate until 31/07/26 at 4.71% and then on a variable rate of 6.99% for the remaining 22 years would require 27 payments of £1,266.09 followed by 261 payments of £1,541.62. The total amount payable would be £437,546 made up of the loan amount plus interest (£218,366) and fees (£999). The overall cost for comparison is 6.7% APRC representative.

London & Country Mortgages Ltd, Unit 26 (2.06), Newark Works, 2 Foundry Lane, Bath, BA2 3GZ is a company limited by shares. Our Companies House number is 1988608. We are also authorised and regulated by the Financial Conduct Authority. Our FCA number is 143002. The FCA does not regulate most Buy to Let mortgages.