You are here: Home - Mortgages - First Time Buyer - News -

Savvy millennials get their finances mortgage ready

Written by: Christina Hoghton
Millennials are making tactical changes to their financial behaviour to help them get on the housing ladder with their first mortgage, according to research.

Over a fifth of 18-24 year olds admit to changing their money habits to present themselves as financially responsible, compared to just 9% across all age ranges, according to research by Moneysupermarket.

Over a third would put their spending on a credit card and strive to clear the balance each month, while nearly a fifth would pay off existing debts in the run-up to a mortgage application to clean up their finances.

Ready, set, budget

Nearly two-thirds of 18-24 year olds plan to apply for a new mortgage within two years or less – although the amount they will need to borrow remains high. The report reveals this is the age group most in need of a high loan-to-value amount, with 44% stating this is the key thing they’re looking for from a lender.

Sally Francis-Miles, money expert at Moneysupermarket, said: “Anyone planning to apply for a mortgage will look to rein in their spending habits before submitting their application, especially first-time buyers who are new to the process.

“Since the FCA’s Mortgage Market Review introduced new affordability criteria in 2014, it’s harder to be accepted for a mortgage, even if you know you can comfortably afford the repayments. There is more emphasis on being able to pay if rates increase, which is what catches many people out. So while the rules were introduced for the right reasons, we don’t want to see people being turned down unnecessarily.

“Clearing debts and generally sorting your finances is the starting point if you’re considering getting on the housing ladder. It’s also good practice for owning a home.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

  • What are some things to be aware of in choosing property to fund your retirement? Find out from our pension special…
  • RT @Defaqto: With many nervous about taking an overseas trip, Brits are booking up holidays closer to home. But should you buy travel insur…
  • RT @Defaqto: With many nervous about taking an overseas trip, Brits are booking up holidays closer to home. But should you buy travel insur…

Read previous post:
Today marks State Pension survival day

Friday 25 May has been dubbed ‘State Pension survival day’ as it marks the moment when the average UK worker...