Can I get a Mortgage without a deposit?

depurnell

You can still get a 100% mortgage!!

bubblesmoney

0james0 wrote: »

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.

guess with advisors like u there wont be any dearth of ur customers lining up to get repocessed with the way the property market is going.

i wonder when people will realise that to buy something u need to start saving for it in the 1st place. u cant just wish for buying something and use someone elses money for buying. the least that is required is enough for transaction expenses even if one gets a 100% mortgage by some 'miracle' in the present climate. the OP doesnt even have the transaction expenses saved :eek: and has other loans to clear as well, in that situation i wonder how some advisors are advising the OP to dig their own graves and prepare for repocession scenario even before they buy a place.there is no lack of people willing to be sacrificial goats and then people complain about losing their homes when they make purchases in such risky personal financial circumstances.

by the way since u say 'helped many of my customers'. i guess u imply that u r a mortgage broker. if so, then u need to follow the MSE policy on mortgage advisors and have the relevant signature as advised by MSE and followed by most other mortgage advisors on the board.

OP, start saving, clear ur other loans, save enough for transaction expenses, save for moving expenses, save for additional house related purchases / repairs etc, save for deposit and then only think of buying a place. if u cant save then u r just asking for trouble by trying to buy a place. there is nothing wrong with renting especially in ur circumstances

0james0

bubblesmoney wrote: »

guess with advisors like u there wont be any dearth of ur customers lining up to get repocessed with the way the property market is going.

Helping people to buy a house with no deposit makes me a bad advisor? Why does having a deposit make you any less likely to get your house reposessed? It shows you can save, maybe, but it doesnt show your ability to repay a mortgage.

Many people are currently renting -and sick of it. They would love to own their own house but cannot save a deposit, no matter how hard they try. There are thousands of people who want to save, could save but just aren't very good at it. They pay their rent on time, in advance on bills, spent lots of money on their rented place. But due to their inability to save, would not be mortgage worthy?

bubblesmoney wrote: »

the least that is required is enough for transaction expenses even if one gets a 100% mortgage by some 'miracle'.

I'm saying we can get a 100% mortgage, not 100% + all fees paid. Thats just greedy!

I'll put the signature on when I get 5 mins to work it out. Too busy helping people get repossesed.


Wouldn't normally bother rising to such one sided critisim, but these boards are well respected and well read. It is not fair to chuck another poor excuse on why not to buy now. There are too many people with rose tinted glasses on giving their opinions. Its people like you that will damage the market further.

Anyone thinking of buying should go see a broker and see if it is feasable within your budget. There are some real bargains to be had now that are future proof. I see it everyday.

bubblesmoney

0james0 wrote: »

Helping people to buy a house with no deposit makes me a bad advisor? Why does having a deposit make you any less likely to get your house reposessed? It shows you can save, maybe, but it doesnt show your ability to repay a mortgage.

Many people are currently renting -and sick of it. They would love to own their own house but cannot save a deposit, no matter how hard they try. There are thousands of people who want to save, could save but just aren't very good at it. They pay their rent on time, in advance on bills, spent lots of money on their rented place. But due to their inability to save, would not be mortgage worthy?



I'm saying we can get a 100% mortgage, not 100% + all fees paid. Thats just greedy!

I'll put the signature on when I get 5 mins to work it out. Too busy helping people get repossesed.


Wouldn't normally bother rising to such one sided critisim, but these boards are well respected and well read. It is not fair to chuck another poor excuse on why not to buy now. There are too many people with rose tinted glasses on giving their opinions. Its people like you that will damage the market further.

Anyone thinking of buying should go see a broker and see if it is feasable within your budget. There are some real bargains to be had now that are future proof. I see it everyday.

no matter how good the bargains, if one cannot afford it one cannot buy it. to afford it one has to be able to save money in the 1st place. u seem to be contradicting yourself. in one breath u say, some of the people u r advising cant save no matter how hard they try and in the same breath u r trying to help them to buy a home and that in the present climate!!!!!!!!!!! instead of giving advice like that, u could give them a much less painless end by asking them to pay u a couple of thousand for ur advice. atleast that way they wont be losing thousands more plus get repocessed later and be in a worse off financial state for decades after that.

it isnt rocket science at least to me. if one cannot save for a deposit then one cannot buy a house without a very high risk of getting repocessed. usually mortgage payments and other house buying associated expenses are much more than paying rent. so people who cant save while renting usually wont be able to keep up on mortgage payments and other payments like insurance etc.

a layperson like me shouldnt even need to say something like this to a mortgage advisor. this is bread and butter common sense economics. this is MSE forum and common people like me have a voice too. it is precisely bad advice like the ones u have given above that have landed people in a mess and getting repocessed and financial markets in a turmoil and not people like me advising caution and trying to save first before jumping in deep water and hoping one doesnt drown themselves and their family. i hope my friends atleast dont seek financial advice from u. sorry for this personal comment. but i wouldnt want anyone suffering from incompetent financial advice. following ur advice will be pure and simple financial suicide in the above discussed scenario

_Andy_

bubblesmoney wrote: »

usually mortgage payments and other house buying associated expenses are much more than paying rent. so people who cant save while renting usually wont be able to keep up on mortgage payments and other payments like insurance etc.

On what do you base that belief?

bubblesmoney

_Andy_ wrote: »

On what do you base that belief?

if one has a good deposit, they would qualify for a better interest rate, making their outgoings lesser per month. but if they need a 100% mortgage like for the OP here, that in the present climate would mean even if they somehow found a mortgage provider willing to give a 100% mortgage, even in that scenario they would have a very high interest rate, plus extra insurance for high LTV, plus extra loans for transaction costs (as OP doesnt have savings to cover transaction costs) which again would be at a high interest rate, plus other insurance (building, life cover, or MPPI etc). all this would most likely cost more than renting costs. if it didnt then why the hell would anyone rent, wouldnt everyone be buying houses or are most people being stupid in renting houses when it is cheaper to buy houses and sell them when they need to move elsewhere. why would the council ever need to rent houses or why would there be a need for buy to let or housing associations, wouldnt it be easier and cheaper for everyone to buy houses instead if the logic that it is cheaper to buy than to rent a house is true. or have i got something wrong. please enlighten me.

but for a person who has saved a deposit, then buying in some cases might be cheaper than renting. precisely why i am buying at the moment. i was just saying it is a bad decision for the OP to buy without a deposit or transaction costs.

0james0

So are you saying that unless someone walks into my office with a 25% deposit I should tell them to keep renting? What do you think they would do? -They would walk next door and do their mortgage with the next advisor.

You cannot tell me I give bad advice when someone asks the question if it is possible to get a 100% mortgage and I tell them of 2 ways. Should I keep it a secret?

I'm sure you think I don't even check to see if my customers can afford a mortgage, I give great advice and proud of always giving honest advice even when I won't benefit from it. If someone can't afford it I will tell them. Should I pass all of the first time buyers to other advisors to give bad advice? They will buy anyaway. I can point them in the right direction of what size house, help them offer to get it cheap -make sure they don't get ripped off by dodgy desperate ea's.

The 2 do go hand in hand normally though. Think about it, people who don't have the ability to save tend to me more unreliable at paying bills, black marks on credit mean mortgage companies wont lend, especialy now a days. -how it should be.

But you do get people with excellent credit and no deposit, maybe no time to save for a deposit, but can handle a mortgage no probs. These are the people that will get accepted and then be ok.

Trust me with mortgage compnaines now a days, if someone is not mortgage worthy you will not get them a mortgage!

0james0

bubblesmoney wrote: »

all this would most likely cost more than renting costs. if it didnt then why the hell would anyone rent, wouldnt everyone be buying houses or are most people being stupid in renting houses when it is cheaper to buy houses and sell them when they need to move elsewhere. why would the council ever need to rent houses or why would there be a need for buy to let or housing associations, wouldnt it be easier and cheaper for everyone to buy houses instead if the logic that it is cheaper to buy than to rent a house is true. or have i got something wrong. please enlighten me.

Most peoples rents that I see are not far off or more than the total mortgage cost. Many, many, many people bought houses/ flats to do up and then rent out, -they saw it on tv and it said you couldn't fail!

They have huge mortgages, they try to keep rent say 110% of mortgage, idealy 125%. Surely for many people, long term, even interest only mortgages would be better than renting? History has shown equity growth over time would mean that you would have made more money buying than renting.

In_a_Mess_3

I would just like to say in response to some of the posts on this thread that up until a year ago hubby and I owned a house with some equity in it, however, I had to stop working and we had to move area due to our eldest son having major traumas at school, so we used the equity from our house sale to clear some debts, however it still didn't clear all of them.

Husband earns around 30k, we only get child benefit, we have 2 children and associated expenses.

We pay our rent, council tax, and bills, etc etc, when all that is gone we don't have anything left to save.

But, all those bills above are actually MORE than what we paid when we had a mortgage, so, does that mean because we have tried to do the right thing by our debts and our child, that we should now not be allowed to get back on the housing ladder simply based on the fact that we are unable to save a 10% deposit for a reasonable sized house, which up here would mean saving around 20k. Not possible.

neas

wait for house prices to come down in a few years... and save even 5k-10k... and itll be enough...y oull see.

Work extra jobs... struggle... stiff upper lip and all that...