Over time, the age of homebuyers in the UK has significantly reduced with millennials getting on the property ladder fairly early in their lives. But with the higher property prices it is difficult to clime the property ladder.

Some of the millennials earning a handsome income, or you may have mum and dad bank  it has become possible for millennials to dream of buying their own houses.

However, it is all easier said than done! While the number of millennials buying homes is increasing, it is important to ensure that they get ready for making the biggest purchase of their lives. Young homebuyers need to take several factors into consideration (especially regarding financial management) as they get on the property ladder.

When it comes to managing finances, you cannot miss out on getting a good mortgage deal. If you are a millennial and planning to buy your own home, ask yourself, “Are you mortgage-ready?”

Here are a few simple yet important ways in which millennials can get ready to buy a house:

Have a steady source ofincome

When you approach a mortgage lender to purchase a property, they would check if you have a steady source of income. Also, it is advisable to have a high-paying job to be able to pay off the mortgage payments every month. Mortgage lenders prefer engaging with borrowers with a steady income as it reduces the risk involved in lending money.

Most lenders allow you to borrow five times your annual income. This makes it important for millennials to get that high-paying jobs and work hard to earn a steady income.

Start saving for the deposit

Millennials often tend to spend most of their earnings on trivial pleasures. If you are an aspiring young homebuyer, you cannot afford to spend a large chunk of your income on things that are not important. Mortgage lenders may ask for a deposit of anywhere between 5% and 15% as you seek financial aid for buying a new home.

Make sure you start saving money right away and spend a few years gathering the deposit money while earning a steady income. Reduce trivial expenses and focus on spending your money only where it is needed.

Seek specialized mortgage lenders

As a millennial homebuyer, you may have lesser mortgage options available as compared to others. Without losing hope, work with your mortgage broker to find specialized mortgage lenders who are ready to provide you with a good mortgage deal as per your requirements.

There are mortgage lenders who will consider parental income or the income of a close relative while providing loans to millennials. While there are such specialized mortgage in the market, you need to scan the market with the help of your mortgage broker to get the best deal as per your circumstances. 

Borrow wisely

If you are a millennial homebuyer planning to get on the property ladder, make sure you apply for loans and credit cards wisely. Take these financial products only if you are absolutely sure about making the payments on time. Defaults and delays would hamper your credit score and your chances of getting a good mortgage deal.

However, it is also important to note that you need some credit history for lenders to make assessments. Instead of not taking any financial products such as loans or credit cards, it is advisable to take credit and pay it back on time. This would improve your credit score and help you get a mortgage deal that suits your requirements.