Can I get a Mortgage without a deposit?

Ian_Griffiths_Halifax

Scooter78 you need to speak to a Whole of Market Mortgage Broker about the Vendor Deposit Scheme. Some lenders will allow up to 5% deposit to be paid by the vendor, but the interest rates are higher and the fees are higher.

For anybody else with a 5% deposit already, if they use the Vendor Deposit Scheme to get the vendors to pay 5% on top of their own 5% then they will get 90% LTV deals and a lower rate and fees.

Ian_Griffiths_Halifax

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

Sorry but I'd say forget buying until 3 years after your adverse credit has been sorted out.

Lending criteria may change again in the future, but it would be better for you to just sit tight until you are back on the straight and narrow and have a deposit and no other credit commitments.

scotsmum_2

myhooose wrote: »

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?

I would assume this includes child benefit, child tax credit and working tax credit.

leftieM

You won't get working tax credit on 23k. You will get child benefit and child tax credit but I'm also surprised it's that much.

minimike2

Aye it seems a bit high....we only qualify for £1080 a year with one child....its hardly even worth claiming!

Ian_Griffiths_Halifax

minimike2 wrote: »

Aye it seems a bit high....we only qualify for £1080 a year with one child....its hardly even worth claiming!

Bet you wouldn't be saying that if they took it off you

meester

leftieM wrote: »

You won't get working tax credit on 23k. You will get child benefit and child tax credit but I'm also surprised it's that much.

Child benefit is £18.80/week = £977.60

Then because they earn less than £50k, then:
Family Element: £545
Baby Element: £545
= £1090

Other tax credit rates are:
Basic Element: £1800
Couple Element: £1770
30-hour Element: £735
Family Element: £545
Child Element: £2085
Total = £6935

Income is £23729, and withdrawal rate is 39% above £6420, so the figures come to 39% of £17309 = £6750.51

So they get £6935 - £6750.51 = £184.49

Total is then £184.49 + £1090 + £977.60 = £2252.09

So no, not even close to £4k

meester

meester wrote: »

Child benefit is £18.80/week = £977.60

Then because they earn less than £50k, then:
Family Element: £545
Baby Element: £545
= £1090

Other tax credit rates are:
Basic Element: £1800
Couple Element: £1770
30-hour Element: £735
Family Element: £545
Child Element: £2085
Total = £6935

Income is £23729, and withdrawal rate is 39% above £6420, so the figures come to 39% of £17309 = £6750.51

So they get £6935 - £6750.51 = £184.49

Total is then £184.49 + £1090 + £977.60 = £2252.09

So no, not even close to £4k

Also, just to add the baby element of £545 should have either gone or be about to go, because the baby is over 12 months, so down to £1700 in fact. I'm not quite sure how they do the workings on that though.

unlucky2008

~Beanie~ wrote: »

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.

There is a way around it, some mortgage brokers can obtain what they call a vendor gift. This means that the deposit is included in the sale price of the property. You need to go to a mortgage broker for up to date advise on the situation.

Hope this helps

0james0

There are still ways to buy without having a deposit. Two main ways:

Option A- As said by unlucky2008, vendor gifted deposit is a great way, all it means is that the seller technically gives you the 5% deposit. In reality you are just making the figures work for you. THE PROPERTY MUST VALUE UP TO THE HIGHER FIGURE. As far as I know, the only lender still doing vendor gifted deposits is the Halifax, which will be great for you as they take your benefits into account when deciding how much you can borrow.

Option B: Is the My Choice Homebuy Scheme, it is more or less a low interest loan given to you as a deposit. Great scheme, helped lots of my customers. Read more about it here: www.home2own.org.uk you do however need to qualify for it and i know many areas have run out of funding.

Option A would be by far the quickest and easiest. You just need to bare in mind that you will be in negative equity by the end of the year (unless you grab a real bargain) so the purchase must be a long term plan.

All the people who said you need a 10% deposit need to do some more research. Even with just a 5% deposit there are still some fairly decent deals around.