Hi
I'm posting on behalf of my sister in law and apologies if this is a daft question. I haven't taken out a mortgage since 2005 and I know things have obviously changed a lot since then.
My sister in law and her boyfriend are both 25 and are thinking about the future. They both have full time permanent jobs. He is on quite good money - circa €33k and she is on quite a low wage - she was working a retailers since coming back from Australia after finishing her degree but is now working as a financial assistant for a large company. She earns €20k.
At the moment they are both living at home, rent free and are saving hard.
The issue is that neither have any credit history and they don't know if this will affect them negatively in a few years time.
I think that they would like to buy by year end 2015 (if possible) and would be looking to borrow about €230000.
The conundrum is a) should they keep saving hard or b) would the bank view it more favourably if they were paying rent and had some sort of credit history or a rent history or c) save the 10% deposit which they think they would need and once that is saved rent for a year.
What would you recommend?
Thanks in advance.
I'm posting on behalf of my sister in law and apologies if this is a daft question. I haven't taken out a mortgage since 2005 and I know things have obviously changed a lot since then.
My sister in law and her boyfriend are both 25 and are thinking about the future. They both have full time permanent jobs. He is on quite good money - circa €33k and she is on quite a low wage - she was working a retailers since coming back from Australia after finishing her degree but is now working as a financial assistant for a large company. She earns €20k.
At the moment they are both living at home, rent free and are saving hard.
The issue is that neither have any credit history and they don't know if this will affect them negatively in a few years time.
I think that they would like to buy by year end 2015 (if possible) and would be looking to borrow about €230000.
The conundrum is a) should they keep saving hard or b) would the bank view it more favourably if they were paying rent and had some sort of credit history or a rent history or c) save the 10% deposit which they think they would need and once that is saved rent for a year.
What would you recommend?
Thanks in advance.