First time buyer with no deposit!!

Zelie

hethmar wrote: »

Perhaps you could swop ?:T

Might work out well!

OP - do you want to live near Edinburgh? My dad does a mean Sunday roast and it's a very pretty area. Only thing is you must like cats and be able to put up with snoring.

And are your parents in London? Also, how much would my rent be and do they mind that I keep funny hours? And can I get a dog?

LisaLou1982

Hi Catgirl

There are currently no 100% mortgages available in the market place so you will not be able to buy a resale property

However, this does not mean that you wont be able to buy a property - there are still some schemes available, as mentioned above, whereby you can purchase a property without a deposit. The MyChoice HomeBuy scheme is due to have more funding added to it in April although does run out extremely quickly and is on a first come first serve basis. This is on the same basis as the Own Home scheme as someone above has described.

The only other way to purchase without a deposit is to go to a builder who is offering an assisted move scheme - normally 75% mortgage with a 25% interest free loan - NOT shared ownership - The loan is normally payable within 10yrs. In this instance, the 25% interest free loan will cover your deposit.

Please note, that neither of these ways of purchasing are necessarily the cheapest way of buying a property and you should look into it carefully as to how much it will cost you. On the other hand, these schemes work very well for some people and can, in some instances, be cheaper for them than renting, especially if the area in which they are purchasing has historically high rents.

Do your research and do what is best for YOU!

All the best xx

Strapped

I must admit, I thought this was a wind-up when I read the OP.

Premier_2

zaphod_beeblebrox wrote: »

...
… with no deposit and am really keen to get on the property ladder

Go to bed @23:00 and dream...

Don't have nightmares, do sleep well!

hethmar

Zelie, do you parents want a middle aged daughter?

chewmylegoff

catgirl_emi wrote: »

Hello,
I'm looking for some much needed advice. First quick question - are there any current 100% mortgages available on the market at the moment?
I'm a key worker - with no deposit and am really keen to get on the property ladder. I was looking into a scheme where i'd have got a 25% mortgage and the other 75% on a rental basis, what i then found out was that i still needed a deposit on the other 25% as technically it was 100% of the amount i needed - so a deposit was still required. So i felt really disappointed by that.
I'm also looking into the FTBI - first time buyers initiative, i know this scheme is offered by the government but also other large housing companies offer it e.g. barretts, crest etc. What this scheme seems to be to me is you get a mortgage for say 50% and the other is a shared equity loan - so you pay that back starting 3 yrs into it for example. However its not clear to me whether you still need a deposit for these schemes? As on their advertising it says "no mortgage deposit required" . I can put aside money for legal fees etc. but not enough for a deposit.
I have also looked into renting - which i'm not keen on and aside the initial fees of setting up to buy a house / flat it seems to be more expensive on a monthly basis!
So really i'm looking for anybody's experience / advice as to what to do! I currently live with my parents, but i'm not willing to stay here for the next 5 years to get a decent deposit together!
Many thanks!!!

you can't afford to buy a house, sorry. goodbye.

hethmar

Although you have had some harsh replies catgirl, basically the truth is you cant afford to buy a house - rent a place until you have got some money saved and then look at the market again.

Zelie

hethmar wrote: »

Zelie, do you parents want a middle aged daughter?

Well they're going to get one soon anyway so I don't see that they can reasonably object. Should have thought of that before I was a twinkle. Do your parents want a slightly younger daughter?

hethmar

Afraid Ive lost mine Zelie, but I reckon OH would like a younger wife

Wickedkitten

londongirl wrote: »

Well just to put forward a different point of view and a different spin on things. Its all very well people saying go and rent and save for a deposit - its not necessarily that easy - in the area where i have just bought my studio flat rental prices for same or worse studios are in the £550 / £600 mark per month. There is no way i could have afforded this and to have saved as well.

You live in London though. London is completely backwards compared to the rest of the country when it comes to rent prices. When we lived in Scarborough, we were paying £375 for a 2 bedroom flat with on South Cliff with a seaview, and now we live in one of the nicer bits of Cheltenham and we are paying £725 with all bills included on a 1 bedroom flat.

I didn't want to go with shared ownership and all the clauses that entails plus the paying rent part - i've gone with the OwnHome scheme and bought 60% of my property on the open market. When making my offer I was in exactly the same negotiating position price wise as I would have been if i had been buying 100% of the property myself. The offer accepted was £125k (after initial asking price a few months before of £144k) and i now have a mortgage for 60% of that which with the base rate falling is now a very comfortable £298 per month which allows me to overpay my mortgage a bit and save a bit and also have a social life. Had i been renting this would not be the case.

You have a studio flat. Not even a one bedroom flat, a studio. If prices keep coming down and you have to sell, people are going to be jumping right over your head in order to get to the two bedroom flats.

Not to mention it has a 40% equity loan attached as a second charge which means it's worth 60% of what you paid for it in total already and moving up the ladder is going to be a nightmare.

I put no deposit down (though i am lucky enough to have an okayish amount of savings in the bank which I intend to use if and when i want to increase to buy the rest of my flat). So the OwnHome scheme is one where you can buy without any deposit. It is not specifically for key workers either just anyone on a low income (well they say low - household income has to be less than 60K i think so not so low!)

You can buy without a deposit the only bank you can do this with is The Co-Operative bank and they are guaranteed to make more money than you are by the time you either redeem your mortgage or sell your property.

Having had a pretty good experience with this scheme i have recommended it to a couple of other people but when they phoned up they were told funding won't be available again until April. So i would suggest you look into this scheme if you are interested and call up for more information as soon as possible in April.

No offense meant whatsoever, but personally I wouldn't recommend this scheme to someone that I hate, let alone someone that I was actually friends with. I certainly hope you explained the cons to them as well.

Sorry to everyone else who is just saying no don't buy and save up for deposit etc. I agree saving up for a deposit is the best thing to do if you can - but not everyone can in their current position. I am ironically now in a much better position financially and able to save each month than i would be if i was renting (and a much better position mentally than if i had stayed living with my parents any longer!)

I can understand how stressful it is living with parents, honestly I do, but I can't possibly see how you can remain in a better position if you aren't planning on staying there for a long time.

I'm not saying the scheme is for everyone but i personally believe it is a lot better than shared ownership. The equity loan they give you is interest free for 5 years and then 1.75% interest for next 5 years. 3.75% after that i believe and the whole thing is repayable after 25 years. Again much better in my opinion than the schemes run by housing companies such as Barrett etc where you are expected to pay back the loan within 10 years.

In my opinion as far as the loan in concerned, you're "lucky" in the fact that you bought in a falling market. If you bought in the middle of last year, then your property has probably already lost more value off it. The reason I'm saying you are "lucky" is because when you pay off the 5% chunks of the loan, they go by the price that it is valued at at the time so right now that's great because you will end up paying a lot less than you would.

Obviously no one knows when the prices are actually going to bottom out, but definitely as it drops further just keep paying it off in chunks, or save as much as you can and then when they actually do start to correct, pay it all off because it will be a LOT less than it was when you first bought.

I hope I've not come off as being harsh because I truly didn't intend to be.