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100 % mortgage first time buyer

13

Comments

  • Captain_Mainwaring_2
    Captain_Mainwaring_2 Posts: 1,124 Forumite
    andys15 wrote: »
    What a crazy assumption.

    just because they dont have a deposit, it does not mean he couldn't afford a mortgage.

    When I qualified for my job, my pay went from £27000 up to £57000. I had no deposit as i couldn't save for one on a low wage, but I could afford the mortgage, as I bought when my circumstancess changed.

    Just out of interest, if they can't afford a deposit, how on earth can they afford to run the place? How about things like stamp duty and lawyers fees? Anyone who doesn't have a minimum of 5K in the bank after they have bought the house is asking for trouble.
  • Bf109
    Bf109 Posts: 634 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    WhySoHard wrote: »
    If you were living on that in a city like London with a couple of kids and renting in the private sector, it would not stretch very far. My sister is on about 27k and has 3 kids and is a single mum in London and all she can afford is a council flat and a holiday about once every 3 years.

    I'd wager if it wasnt for benefits she could afford to live at all.

    £27k in London is peanuts. Its not a living wage.
    [FONT=Arial, Helvetica, sans-serif]Rise like Lions after slumber
    In unvanquishable number -
    Shake your chains to earth like dew
    Which in sleep had fallen on you -
    Ye are many - they are few.    [/FONT]
  • WhySoHard_2
    WhySoHard_2 Posts: 300 Forumite
    Bf109 wrote: »
    I'd wager if it wasnt for benefits she could afford to live at all.

    £27k in London is peanuts. Its not a living wage.

    I disagree. It is a living wage in London, but only if you are single or perhaps a parent-of one and NOT a single parent.
  • Captain_Mainwaring_2
    Captain_Mainwaring_2 Posts: 1,124 Forumite
    WhySoHard wrote: »
    I disagree. It is a living wage in London, but only if you are single or perhaps a parent-of one and NOT a single parent.

    Well you might be able to live on it, but you won't progress much on it.
  • WhySoHard_2
    WhySoHard_2 Posts: 300 Forumite
    Captain_Mainwaring wrote: »
    Well you might be able to live on it, but you won't progress much on it.


    People in jobs like secretary, teacher, nurse, admin worker, bus driver etc are unlikely to make much more than that and may even make less.
  • Captain_Mainwaring_2
    Captain_Mainwaring_2 Posts: 1,124 Forumite
    WhySoHard wrote: »
    People in jobs like secretary, teacher, nurse, admin worker, bus driver etc are unlikely to make much more than that and may even make less.
    That's what I mean, it's a living wage, it doesn't allow anyone to progress much.
  • WhySoHard_2
    WhySoHard_2 Posts: 300 Forumite
    Captain_Mainwaring wrote: »
    That's what I mean, it's a living wage, it doesn't allow anyone to progress much.

    Progress spiritually?
  • Ian_Griffiths_Halifax
    Ian_Griffiths_Halifax Posts: 1,690 Forumite
    pitsmoor wrote: »
    Hi all

    I know the financial system at the moment is bad but ive recently let a property and the landlord has just put it up for sale at the moment me and by partner dont have enough money for a deposit and was hoping there might be 100% mortgages out there if anyone knows could you let me know.

    thankyou

    If you couldn't afford to buy when you 'recently let', then what has changed?

    You could get a 95% mortgage if the vendor willl pay the 5% deposit difference, but unless as has been mentioned already, you get it at a very big reduction, you might end up in negative equity fairly soon depending on if values are dropping in your area. They aren't dropping everywhere and not by anywhere near the quoted levels you might hear in the news.

    I would consider shelving this idea for a while and just rent elsewhere. Find out how much you would need to pay for a mortgage on a house you would be happy living in, and find out how much deposit you would need (min 10% if you want anything like a decent rate).

    You then need to save up for that deposit. If, by the time you have a 5% deposit saved, you can also get a vendor to pay 5% deposit, then you will only need a 90% mortgage.
    I am a Mortgage Consultant and don't like to be told what I can and can't put in a signature so long as it's legal and truthful.
  • brit1234
    brit1234 Posts: 5,385 Forumite
    cmart021 wrote: »
    I understand what you are saying but just because house prices are falling does not mean that 'everyone' who buys now (say hypothetically with a 100% mortgage) will be in negative equity.

    Ill give you a for instance. House is valued and sold for 275000 at the housing peak last year.

    The very same house is sold for 187000 last week. Over 30% drop. Now im not proclaiming to be an expert but I dont think they have dropped that much.

    It is highly likely based on previous housing downturns is that they last years. This housing crash has just started so rhere is a likelyhood that prices will continue for years. Even if people buy now at a big discount the price is likely to gall well below that in the downturn.
    :exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.

    Save our Savers
  • neverdespairgirl
    neverdespairgirl Posts: 16,501 Forumite
    andys15 wrote: »
    When I qualified for my job, my pay went from £27000 up to £57000. I had no deposit as i couldn't save for one on a low wage

    not terribly tactful of you, describing that as a "low" income.
    ...much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.
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