Student morgage

[Morrisonker]

I'm 19 and I've realised that buying a flat and paying a monthly morgage is going to be cheaper than renting a place, plus I'll have the added bonus of being on the property ladder. 

Apart from needing a parent to guarentee the repayments, is there anything else i should know about morgages?  will I be at a disadvantage being so young?

[hugoboss]

wow - so young! well done. remember you need to budget not only for mortgage payments, but also house & contents insurance, payment protection, life insurance and so on. Also, budget for maintenance on the house. You will probably need to be able to provide proof of previous 3 years worth of addresses. although, it does depend on the mortgage. Also, remember stamp duty (1% of house value) and solicitor fees. It's a good idea, but just remember all the costs mount up. Hope you've got a deposit, otherwise you'll need a 100% mortgage, and if house prices suddenly drop, you may find yourself in a negative equity situation. take your time over it, and think about all options before taking the leap! Good luck!

[Ammy]

If you are a graduate, or will be soon, it might be worth getting a graduate mortgage because you'll get various benefits like stamp duty paid, 100% motgage, surveyors fees paid etc.

Banks like Lloyds, Scottish Widow and Natwest offer this service.

[Scarlett]

The only downside I can see is that at 19 you are not as settled as someone older. I bought my house 2 years ago, and now I am intending to move away and do an MA. I was getting too dragged down being a teacher, and want to be a student again! However, I still want my house. So I am going to have to let it out, which in itself poses lots of risks and probelms, PLUS as a student I will be skint, but still have to pay buildings insurance, repairs etc. I have found that having a mortgage has totally tied me to one place and one job, unlike renting where you can leave when you feel like it.

Also, it is not as easy to sell at the moment, so you may be stuck with it even if you do want to move away. Having said that, it IS better to have your own place, and you will generally make money on it.

[k8tkoo]

Make sure you're aware of ALL the costs - you'll normally need a deposit for not just the property but for the actual mortgage as well (usually between 3-10%). Also, this may be completely irrelevant to you but I want to spread the word!! Do NOT go to Nationwide if you're planning on getting a flat above a shop. They kept me hanging on for 3 weeks before telling me they don't give mortgages to dwellings above shops, aaaaaahhhh!!!!

[k8tkoo]

sorry - meant to say 3-10% of the cost of the property!and there's that bloody stamp duty as well!

[tell-me-more]

I think on the whole it's worth the risk. Had I been able to raise the deposit, I would have bought a property myself at uni. My housemates and I seriously considered it. We would have been so much better off now had we done so.

It is a little risky though, and should house prices go down, depending on your circumstances you might be forced to live there if you're in negative equity.