100% 1st time buyer mortgage

dpac123

Hi,

There is no such thing as a first time buyer mortgage but MOAT will look at shared equity, where you own most of the property and Moat own the rest of it.

The other option is what is known as a "shared equity" mortgage, but this will only work if you can find a builder or vendor who is willing to sell you most of the property e.g. 75% and keep a stake in the property until such a time as you are able to buy them out.

Dan_1976

I was talking to poppy mate, sorry I am on your side lol

michael1983l wrote: »

That is the fault of the person, I know exactly what I am going into and know exactly how we will pay off our equity share after the 5 years are up.

AMILLIONDOLLARS

Click n go Mortgages offered someone I know who only wanted to Borrow £30,000! This mortgage product!!!

4. Description of this mortgage
Mortgage lender Cheshire Mortgage Corporation Ltd
Mortgage product Shared Ownership Property Type A,B & C / 1 Year 2%
Discount 75% LTV
Interest rate type and interest A variable rate, currently 12.75%, with a discount of
2.00% for 1 Year, giving a current rate payable of
10.75%
______________________________________________
Cheshire Mortgage Corporation Ltd's Variable rate,
currently 12.75% thereafter
Restrictions on this mortgage No restrictions apply
Notes The discount will be withdrawn if you do not maintain
monthly payments within the first 12 months. Where
arrears accrue during this period the variable rate shown
in Section 6 will be applied to the loan.
5. Overall cost of this mortgage
The overall cost takes into account the payments in Sections 6 and 8 below.
With a repayment mortgage you gradually pay off the amount you have borrowed, as well
as the interest, over the life of the mortgage.
The total amount you must pay back, including the amount
borrowed is£130,946.79
This means you pay back £3.96 for every £1
borrowed
The overall cost for comparison is 14.2% APR
The figures in this section will vary following interest rate changes and if you do not keep
the mortgage for 30 years. Only use the figures in this section to compare the cost with
another repayment mortgage.
6. What you will need to pay each month Monthly payments
12 payments at a Variable rate, currently 10.75% £308.33
followed by 348 payments at a Variable rate, currently 12.75% £358.33
This illustration is based on a loan amount of £33,030.00 and includes the fees that are
shown in section 8 as being added to your mortgage.

This illustration assumes that the mortgage will start on 01/06/2009

Suffice to say, they won't be taking this offer up!!!!

AMD

Dan_1976

Michael I was on your side! I think your now being a little short sighted, but then again so has most of the country!

People borrowing more than they could afford pushed house prices up, stupid buyers paying silly prices for houses as rates were low and they could afford to get the mortgage and would at any cost!

Self cert mortgages put prices up and yes landlords did not help the first time buyers in this world. Broker can take a bitof the blame for not being stronger and EA's did not help!

Youmay buy this house and it may work out ok, but you are taking a very big risk banking on house prices increasing in five year, have you had you head in the clouds for a few months?

This is the kind of query I would have been getting a few years back. House price will drop by 30-40% in total I think. Lenders are trying to force them down and want to lend a lot less, so this will happen.

hoggums

michael1983l wrote: »

Ok lets run some figures......


My mothly rent is £650 quid,

My mortgage would be £550 quid,

I have £200 spare to save because of high rent a month

20% deposit on £135,000 house = £27,000

That would take me 135 months or 11 years to save assuming house prices dont increase in which time I could have paid £74,250 off my mortgage.


So how is saving a deposit for a house better than going on a government scheme. I am still waiting for a reasoned answer

And if interest rates rise (which they almost certainly will) - your £550 could turn into £750 - then you'll be worse off than your £650 rent.

And quite frankly if you've only got £200 a month spare you should be looking at a smaller and cheaper house. Otherwise illness/redundancy is going to mean you run into trouble fast.

maninthestreet

michael1983l wrote: »

House prices prices in the last 15 years have quadroupled, average wages have increased by on average under inflation.

This is the current governments fault, not the homebuyer. If us first time buyers do not buy people who own their own home will soon see your investment crash. You should be grateful that first time buyers are being given their right to buy.

Are you saying if you can't afford a deposit that you shouldn't be allowed to buy?

I have been paying a private rental agreement that is more than what my mortgage will cost. Why should I pay somebody else's mortgage for them when I can pay my own?

Greedy landlords have increased the housing market artificially, forcing the first time buyer out. I know people with 7 or 8 properties because they bought at the right time in the 90s before Labour screwed the housing market. This is a big part of the reason we are currently in recession.

A big part of the reason we are currently in recession is that banks lent money they didn't have to people who couldn't afford a deposit and ended up defaulting on the loan repayments.

ILW

michael1983l wrote: »

Ok lets run some figures......


My mothly rent is £650 quid,

My mortgage would be £550 quid,

I have £200 spare to save because of high rent a month

20% deposit on £135,000 house = £27,000

That would take me 135 months or 11 years to save assuming house prices dont increase in which time I could have paid £74,250 off my mortgage.


So how is saving a deposit for a house better than going on a government scheme. I am still waiting for a reasoned answer

Problem 1.
You seem to have based your calculations on interest rates staying below 5% which is very unlikely.
Problem 2
As far as paying 74k off you mortgage in 11 years, I think you will only have paid off about 10k. The rest will have gone in interest.
Worth thinking about.

k8r4u

michael1983l wrote: »

...
Greedy landlords have increased the housing market artificially, forcing the first time buyer out. I know people with 7 or 8 properties because they bought at the right time in the 90s before Labour screwed the housing market.
...

I can see this is your first recession :rotfl::rotfl:

We bought our first house at the start of the 90s, and lost over 25% of its value when we sold it three years later. Interest rates were 12-13%, the interest-only endowment mortgage, which is now about 40% under-forecast, was over half of our combined monthly income.

But that was while the Tories were screwing the housing market

herbiesjp

AMILLIONDOLLARS wrote: »

Click n go Mortgages offered someone I know who only wanted to Borrow £30,000! This mortgage product!!!

4. Description of this mortgage
Mortgage lender Cheshire Mortgage Corporation Ltd
Mortgage product Shared Ownership Property Type A,B & C / 1 Year 2%
Discount 75% LTV
Interest rate type and interest A variable rate, currently 12.75%, with a discount of
2.00% for 1 Year, giving a current rate payable of
10.75%
______________________________________________
Cheshire Mortgage Corporation Ltd's Variable rate,
currently 12.75% thereafter
Restrictions on this mortgage No restrictions apply
Notes The discount will be withdrawn if you do not maintain
monthly payments within the first 12 months. Where
arrears accrue during this period the variable rate shown
in Section 6 will be applied to the loan.
5. Overall cost of this mortgage
The overall cost takes into account the payments in Sections 6 and 8 below.
With a repayment mortgage you gradually pay off the amount you have borrowed, as well
as the interest, over the life of the mortgage.
The total amount you must pay back, including the amount
borrowed is£130,946.79
This means you pay back £3.96 for every £1
borrowed
The overall cost for comparison is 14.2% APR
The figures in this section will vary following interest rate changes and if you do not keep
the mortgage for 30 years. Only use the figures in this section to compare the cost with
another repayment mortgage.
6. What you will need to pay each month Monthly payments
12 payments at a Variable rate, currently 10.75% £308.33
followed by 348 payments at a Variable rate, currently 12.75% £358.33
This illustration is based on a loan amount of £33,030.00 and includes the fees that are
shown in section 8 as being added to your mortgage.

This illustration assumes that the mortgage will start on 01/06/2009

Suffice to say, they won't be taking this offer up!!!!

AMD

This is not the same as the HomeBuy scheme being discussed.

The deal you have posted would also be due to having adverse credit - higher risk = higher rates

robin_banks

The homebuy scheme is fraught with danger, all too many people will see this as getting 100% of the house for only 75% of the cost, 5 years down the line many will be unable to pay the balance owing and.......