100% Mortages

singingsister

Will 100% mortages come back? Husband and I are fed up of throwing money away in a rented house (with a c***p landlord!) but just do not have a deposit....well, not enough anyhow. Not nearly enough.

What do people think?

PasturesNew

Probably not. And even if they did it'd be at an interest rate so high it'd be daft to take one on.

To get a deposit, you could look at taking a 2-3 year plan to build one by:
- moving into the smallest/cheapest place you can and putting the rent savings and council tax/insurance savings into your deposit fund
- each taking on a 2nd job and ploughing all that money into a deposit fund
- cutting back on everything you do, think about everything you spend and plough all that lot into your deposit fund

Deposits don't come out of thin air, for most people they have to be worked at over a long period of time.

stevetodd

They will not come back until we get to a environment where house prices are going up and have been for some time ie not after just a few months. I can't see this happening until about 2014. Obviously there may be the odd product a little sooner that charges very high rates but would represent very poor value.

It would be much better to put down a deposit and get a mortgage with a much better rate.

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singingsister wrote: »

Will 100% mortages come back? Husband and I are fed up of throwing money away in a rented house (with a c***p landlord!) but just do not have a deposit....well, not enough anyhow. Not nearly enough.

What do people think?

I would hazard a guess singing sister that you are 'throwing away' less money on rent than you would be plunging into negative equity on a house that you took out a 100% mortgage on

You surely aren't serious are you ? 100% mortgage ?, these products are causing huge amounts of pain for people who took them out in the last 3 years and who are now forced to sell through divorce, relationship split, death, illness, unemployment,

You don't know how lucky you are.

poppysarah

A deposit needs to be saved. If you can't save then you need to look at your lifestyle. If you can't cut back anymore you need to accept that at the current time you aren't in a position to buy.

But learning to save is an important skill so it's worth doing some research on how you can economise or improve your income.

earn more or spend less.

_Andy_

You are not 'throwing money away' - you haven't got to worry about falling house prices, negative equity, money to maintain and improve the property, buildings insurance, etc.

I'm surprised that even in today's economic climate people see renting as a negative thing.

As well as saving for a deposit you will need to save up for legal fees, valuation fee, (possibly) mortgage fees, costs of moving, furnishing cost, emergency funds, etc.

Premier_2

You are not 'throwing money away' - you are buying the landlords property for him and helping to keep the banks in business!

Unfortunately, if you can't save up for a deposit, then I suggest you keep buying landlords property for them. What will happen if something unexpected goes wrong in a house you have purchased. e.g. the boiler suddenly needs replacing? There'll be no one around like a landlord to pay the bill.

singingsister

I see where you coming from but at the moment we've got a landlord who we think has emigrated to India who we can't get hold of, a letting agency who can't do anything about it. And lots of things in the house going wrong (like no working cold water tap in the kitchen), rotten windows that don't lock etc.

It's annoying. My husband is loathed to start fixing these things as he'll never get the money back for the cost of "parts" he uses to fix it but we can't get hold of the landlord for him to arrange fixing the things!

The letting agents said as it's not an "emergency" like water pouring in or something, then there is nothing they can do! We've tried sending recorded delivery letters but to no avail!

I hate not being master and commander of my own house!

IntlGirl

Couldn't you find a new place and move out? A rental, I mean. At least that would take care of the problems you have with the place right now (hopefully!).

Snowbiz

It really depends how far you are willing to go to get what you want. You may have to do all the things suggested in terms of moving to a smaller cheaper rented place and cutting back to save a deposit. Take an extra job, wait for house prices to fall, and consider moving to a cheaper part of the country. You've really got to want it to be able to afford to buy a house these days.

LittleMissAspie

If you can't afford to pay the rent and save extra on top, then you are unlikely to be able to afford mortgage repayments.