First time buyer advice - near 100% mortgages?

hora

Hello, we are first time buyers ideally looking for a 100% or near as dammit! 100% mortgage as a repayment.

Any pointers from recent experience? Really looking for a 2/3yr deal initially where there isnt extortionate deals. Looked at a few and the arrangement fees etc were quite high!

paulfaz

Start saving you'll need at least a 10% deposit. Do you watch the news?

TEDDYRUKSPIN

Ya taking the 'P' are'nt you 'hora'?

Where have you been? Did you know the US have elected a new president? Did you know that a couple are facing prisonment in Dubai for having sex on the beach <note: not the drink>?
Did you know that we have something called the credit crunch? Did you know the world is in financial trouble?

Do you actually read the news? Since you have the internet I suggest you to go on google and type < sarcasm. 100% mortgages. Really? >

Ha.....

hora

paulfaz wrote: »

Start saving you'll need at least a 10% deposit. Do you watch the news?

I know, found three on a comparison with 5% deposit but they were interest-only mortgages with a 3% early repayment on 3yrs so far. Two were Bank of Ireland and the other was Bradford Building Society I think.

Best to aim for repayment rather than interest-only?

I'm new to this, I have always rented to date. IF I bought a interest-only for 3years, then decided to switch (hopefully when the market is better) i'd pay 3% on the amount I'd already repaid as a 'exit' penalty to the existing mortgage?

paulfaz

Hora -

hope youv'e got your tin hat on

1. Carry on renting
2. Start saving
3. Start researching and learning about the biggest financial commitment you will ever make.
4. Read this forum and learn learn learn

Come back in six months

beecher

Definitely do a lot more research on this, and wait til you have 10% deposit saved. What sort of salary multiple are you looking at as I'd be concerned that you may be out of touch with what you'd be able to borrow.

hora

beecher wrote: »

Definitely do a lot more research on this, and wait til you have 10% deposit saved. What sort of salary multiple are you looking at as I'd be concerned that you may be out of touch with what you'd be able to borrow.

Using online calculators we can borrow a range from c.170k-220k however the house that has really 'awaken me is only 127k.

We aren't young/have rented for years and when there was 5/6times salary mortgages around I was scared- wouldnt dare borrow that amount to our earnings.

Kez100

As you are 'older', do you have no savings - none at all?

hora

We have savings, enough for 10% however we always want enough for
a rainy day though. So in an ideal world if we could find the best deal that would last for 2-3yrs that enables us to switch (hopefully) ...when the market picks up and more products/deals are available

beecher

You'd likely be in negative equity in 2/3 years time if you only put down a 5% deposit. That's why such deals aren't available. Save up a bit more so as you have a 10% deposit, money to cover fees etc and some rainy day money - who knows the house you like might still be on sale, and if not I'm sure there will be another one.

beecher

hora wrote: »

I know, found three on a comparison with 5% deposit but they were interest-only mortgages with a 3% early repayment on 3yrs so far. Two were Bank of Ireland and the other was Bradford Building Society I think.
?

Where do you get that they are interest only mortgages?

Is the Bank of Ireland one this one?

http://www.bim-online.co.uk/NetsiteCMS/pageid/13/index.html

You need a guarantor

1st Start is a unique joint mortgage which uses the income of a close relative to enhance the
borrowing capacity of the buyer