Five Key Steps to Buying a First Home Under 30 – Even If You’re Renting and on Under £35k

According to research, just one in four young adults are homeowners by the time they reach 30. However, this has decreased from nearly every one in two in previous generations.

However, while getting on the property ladder may feel impossible if you’re under the age of 30, renting, and earning less than the UK average wage, there are ways around it.

Property specialist, Sophie Owen from Pure Property Finance, says more people can do it if they know the ‘shortcuts’.

“Most young adults are being offered cookie-cutter mortgages that don’t reflect their financial situation. However, there are ways to fast-track access to finance even if you’re young and you aren’t on the UK average salary of £35,000.”

Sophie goes on to give five key tips to help potential first-time buyers secure their first home despite renting and on a lower-than-average salary.

1. Consider a JBSP mortgage

“A JBSP mortgage isn’t something that’s widely spoken about; however, if you’re looking at getting a mortgage on a sole-income, it’s something to consider. A Joint Borrower, Sole Proprietor (JBSP) lets someone, usually a close relative or a parent, help you buy a home by joining the mortgage without having any ownership of the property itself. 

This will help boost your affordability as their income is considered in the application, even though you’re the sole legal owner. It’s ideal for first-time buyers who can afford repayments but might struggle to hit any sort of mortgage criteria. Since the person that’s on the mortgage also isn’t on the title, you’ll still avoid any stamp-duty charges.”

2. Don’t save more – be smarter with your cash!

“While huge deposits are great, you want to focus equally on improving your credit score and also on reducing your debt-to-income ratio. 

A good broker can make a £15k deposit work harder than potentially a £30k deposit that’s sat in the wrong account, and a broker will be able to help you advise on this.”

3. Utilise government schemes

“There are several government schemes in England and Wales to help first-time buyers get on the property ladder that everyone should be taking advantage of. 

First Homes offers newly built homes at a discount of 30-50% for first-time buyers and also key workers. These discounts are also locked into the property to benefit future buyers. 

Shared Ownership is also an option and lets a buyer purchase a share of a property between 25-75% and pay the remainder via rent. Over time, you can “staircase” this and purchase the rest of the property when you’re in a better financial position.

Utilising a LISA, a Lifetime ISA, also gives you an extra 25% of what you save, up to £1,000 per your £4,000, for completely free to use towards your own home. If you save more than £4,000 in a year, this is still capped at £1,000.”

4. Skip the banks and use a broker.

“High street banks are often a dead-end for first-time and younger buyers, especially those who have gone into freelance opportunities post-university or still have student debt. However, a broker can open up deals from specialist lenders that are able to access your full picture, not just your salary multiples. 

Brokers have great relationships with lenders and their whole job is to find the right mortgage that’s suited for you, and it’ll broaden the scope a bit more than going to one high-street bank.”

5. Bridging isn’t just for investors, especially for auction homes

“Most people associate bridging loans with being a type of loan specifically for property investors. However, some of our youngest clients use bridging finance to buy properties at an auction, where you can typically nab a great deal compared to ready-to-buy houses on the market. 

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