Can I get a Mortgage without a deposit?

Scooter78

Hi,
my wife and I are currently renting and have been for the past four years, but due to negative experiences with a letting agent trying to rip us off etc, etc we really want to look at owning our own home.
However, I am the sole wage earner and we don't have any savings for a deposit. We've been trying to save money but had to use our ISA to pay off current account overdraft.
My wage is 23,729 before tax. (possibly rising to 36-37k with a promotion) I currently bring in about 1400 a month after tax. My wife is a stay at home mother and estimates that she brings in around 4k on child benefit as we have a 14month old child.
I have comfortably paid off rent over the last few years and our only debt is a loan for a car which remains about 3k to pay off, which we pay £78 a month on.
I'm assuming that some people don't have relatives who can help them with a deposit, and who haven't managed to save up thousands of pounds in the bank - and yet have a property.
Does anyone have any ideas? The only real enquiries we've made are with our bank, Barclays, who want 10% deposit, and moneysupermarket said i'd need a minimum of 5% deposit.
Thanks, D .

~Beanie~

You are definately going to need a deposit of at least 10% if not more. There were 100% mortgage available not so long ago but these have all disappeared now.

Conrad

95% deals exist but the rates are a bit high and there can be some large fees, which some lenders add to the debt.

Lending for 95% and an average score tends to come in around 4 x income. Benefits are not taken into account usually for 95% mortgages.

Its hard to save on one wage -

Optimisticpair

My advice is find an Independent mortgage adviser - the sort I think you want is a Whole of Market, one who is not going to charge you for working out what you can afford on the first meeting and one who you like and is passionate abut getting you a good deal that suits you. To buy you will need to pay solicitor's fees and the usual disbursements. You will also have to pay for a valuation in some cases.

myhooose

Apologies for the thread drift but how does your wife get 4K benefit? I'm on a similar wage and my wife and baby get nowhere near that? I wonder if there something I have not claimed for?

_Andy_

Optimisticpair wrote: »

My advice is find an Independent mortgage adviser - the sort I think you want is a Whole of Market

Which would be a waste of the OP and brokers time as they don't have a deposit.

hostman

You'll need a deposit to buy in the "regular" way.

You may qualify for one of the Government's "key worker" schemes. Its worth speaking to an advisor about this if you're desperate to buy. But when you read the small print, such deals are often very expensive over the long term.

olly300

blondie37 wrote: »

can anyone recommend good mortgage providers for bad credit because as scooter78 I have now been renting for 3 years, i am struggling to save a deposit due to my outstanding credit commitments??
thanks

In this state of the market no-one is going to recommend you a mortgage provider. Your best bet is to go and see a independent mortgage broker.

sdooley

Threads like this make me think the house price boom could start off all over again. WAIT UNTIL THE PRICES FALL, AND SAVE A DEPOSIT IN THE MEANTIME.

olly300

Scooter78 wrote: »

My wage is 23,729 before tax. (possibly rising to 36-37k with a promotion) I currently bring in about 1400 a month after tax. My wife is a stay at home mother and estimates that she brings in around 4k on child benefit as we have a 14month old child.

Why don't you wait until you get your promotion?

Scooter78 wrote: »

I'm assuming that some people don't have relatives who can help them with a deposit, and who haven't managed to save up thousands of pounds in the bank - and yet have a property.
.

They brought when the banks where throwing money at people. Some of them are in financial difficulty now. Others aren't due to their personal circumstances.

olly300

sdooley wrote: »

Threads like this make me think the house price boom could start off all over again. WAIT UNTIL THE PRICES FALL, AND SAVE A DEPOSIT IN THE MEANTIME.

It won't.

Notice lenders are asking for deposits.