Can I get a Mortgage without a deposit?

0james0

In_a_Mess wrote: »

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.

-That proves my point. Renting can be more expensive than buying and just because someone can't save a deposit doesn't mean they will have their house repossesed!

In a Mess, you may find that what you have done works out perfectly, you have sold at the peak of the market and will probably return when it bottoms out. For the same money you sold your old house for you might be able to buy one that is twice the size!

bubblesmoney

0james0 wrote: »

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!

i am not saying 25% deposits. i am just saying some sort of a deposit to be able to get better interest rates.

bills will mostly be the same whether renting or buying except for extra bills of house owning expenses etc. i feel it is risky taking a interest only mortgage and banking on property prices to bail one out. as it is average multiples in uk are around 5.9 times average annual pay, which is one of the highest in the world. it would be foolhardy to expect prices to rocket up much further. as it is many FTBs are priced out, if it goes higher FTBs will be forever pushed out of the market. for properties to be affordable the only way for that to happen is for prices to come down to more affordable levels (i.e. lower multiples between 3-4) or if prices have to go up then for it to be affordable payscales have to rise hugely across the board. the only way payscales will go up vastly across the board if the govt starts indiscriminately printing money and distributing it which brings its own adverse effects for the countrys economy. most sensible and safe option for majority of people will be for prices to come down to more reasonable levels where common people dont have to give an eye to buy a house to live in. there will always be small booms and busts in any commodity in any capitalist economy but in the long run if prices overshoot the long term mean price then somethings gotta give somewhere.

i dont see anything wrong in giving information about 100% mortgages as long as people point out affordability at the same time as well. for me it is difficult to believe someone can afford to buy a house when they have trouble saving for a deposit. wanting to buy a house and being able to buy a house are two different things. even i want to buy so many things but i cant because i wont be able to afford it. to each his own i guess, some people want things so bad that they are willing to overstretch themselves and put their and their familys future at risk. i am not willing to take such risks. but i accept some will be willing to take bigger gambles to satisfy their needs/ wants faster even if they havent started saving up for it. not my cup of tea though.:beer:

In_a_Mess_3

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...

In response to that up there, My husband already works all the hours god sends, I do party plan, mystery shopping and others but cannot work where a childminder is needed as my eldest child has Aspergers and cannot be put to a childmonder.

We are struggling, very much so, but even so cannot put anything by to save, we are now seriously looking at moving elsewhere in the country, to somewhere we know well which will halve our rent, but it would mean uprooting the children and changing schools again.

Not sure what else we can be expected to do?

In_a_Mess_3

james, yes you are probably right, but it is hard renting and being at the mercy of the landlord when you are used to being a homeowner.

We are now going to sit it out and wait though

0james0

bubblesmoney wrote: »

as it is average multiples in uk are around 5.9 times average annual pay ........ (i.e. lower multiples between 3-4)

You'll be pleased then to hear that gone are the days of 5.9 times income multiples. Average now of all the big lenders is prob 4.

Some big multiples still around, but they only give that to the best customers. With the way things are now mortgage companies are so cautious to lend to anyone, let alone someone with no deposit so unless you have an impecible credit record they simply won't lend -thus forcing the high risk customers to save for a deposit anyway.

Good read this thread, for the neutral trying to decided to buy or not. both pros and cons

bubblesmoney

0james0 wrote: »

You'll be pleased then to hear that gone are the days of 5.9 times income multiples. Average now of all the big lenders is prob 4.

Some big multiples still around, but they only give that to the best customers. With the way things are now mortgage companies are so cautious to lend to anyone, let alone someone with no deposit so unless you have an impecible credit record they simply won't lend -thus forcing the high risk customers to save for a deposit anyway.

Good read this thread, for the neutral trying to decided to buy or not. both pros and cons

i didnt mean mortgage providers willing to lend 5.9 times the annual pay. i meant the average property price being 5.9times the annual average pay. atleast it was that when dicussed by some financial papers recently. uk is one of the few countries that have that high multiples which cant be sustainable in the long run. i feel this has been created by easy credit which artificially props up property prices and brings in the gamblers. not many will have any need for gifted deposits and cash back schemes or shared ownership schemes if property prices were in sensible ranges in the 1st place. by that i mean at sensible multiples of average annual salaries.

irresponsible lenders should go bust. the tax payer should not prop them with tax payers money (to save the jobs in the company) till every shareholder has lost every penny of value in their shares. propping up faiing companies encourages incompetence and irreponsible lending.it is just privatising te profit and socialising the losses like happens all too often. see what happened with the northern rock, the tax payers got shafted and the directors got away scot free with big bonuses all these years and now they got away scot free.

0james0

bubblesmoney wrote: »

i didnt mean mortgage providers willing to lend 5.9 times the annual pay. i meant the average property price being 5.9times the annual average pay. atleast it was that when dicussed by some financial papers recently. uk is one of the few countries that have that high multiples which cant be sustainable in the long run. i feel this has been created by easy credit which artificially props up property prices and brings in the gamblers. not many will have any need for gifted deposits and cash back schemes or shared ownership schemes if property prices were in sensible ranges in the 1st place. by that i mean at sensible multiples of average annual salaries.

irresponsible lenders should go bust. the tax payer should not prop them with tax payers money (to save the jobs in the company) till every shareholder has lost every penny of value in their shares. propping up faiing companies encourages incompetence and irreponsible lending.it is just privatising te profit and socialising the losses like happens all too often. see what happened with the northern rock, the tax payers got shafted and the directors got away scot free with big bonuses all these years and now they got away scot free.

I agree with you completely. (who'd have thought I'd have said that at the start of this thread!! )House price boom was fueled by easy credit and now the price crash was pushed along when credit got harder to obtain.

And don't even get me started on Northern Rock!

what makes me laugh is all of the people that benefited from nearly 10 years of good times, really good times -EA's, N Rock etc have a few months of trouble and then shut down. How much money did the EA's make? now they are closing offices. Talk about planning ahead!

speedyG_2

Scooter78 (OP) .. The best advice I can offer is ... always buy a car you can afford to walk away from. The price you paid for that car on HP, could have been your deposit.