This is probably obvious but.....

kelzbelz_04

Hi Everyone,

Im a bit of a mortgage newbie and wondered if anyone could offer me some much needed advice.... basically, we are a young couple looking to purchase a property... i am ashamed to say we do not have a deposit... but we read somewhere that if somebody is your guarantor you do not need a deposit...a relative has offered to do this, and with taking his salary into consideration, it would easily bump up the amount we could borrow which is fab... but then I rang London and County, who said that you still need a deposit, even with a guarantor of at least 15-20% !!!??? In our area (Bristol) thats at least 22k! eek! Is that correct? its not that I doubt the guy I spoke to, but i thought it was the last remaining way of getting onto the ladder without a deposit...

(Please dont think im one of these people who want something for nothing - im really not! - Im just a bit confused) ... if 100% mortgages dont exist now, and you still need 20% deposit to have a guarantor mortgage....then (other than this shared ownership housing association thing) theres no real way of getting onto the property ladder???!!!

With our bills, rent, car costs etc etc, it would take us almost forever to just get 20k together!!!!

Really hope I havent rambled too much, but would so appreciate some help!

Kelly x

latecomer

Dont take this the wrong way but if you cant afford to save a deposit then maybe you should put off buying for a while. Prices are falling at the moment and that means that as soon as you buy you are losing money. Dont forget that there are additional costs to owning a house too.

rocking69

Hi,
Have you thought of the Homebuy scheme? Is not for everyone and you really have to know what you are getting yourself into before going ahead.


The guarantor thing is only for renting deposits (I think!)

Hope this helps.

Robert_Sterling

A lot of people want to buy a house......... Demand
They can't all have a house ..................... Supply
Those who have saved have a better chance of getting the house.

Rednoseranter

Your confusing a specific mortgage product that is available from a specific lender who will take a relatives salary into account when working out how much they will lend you, with whether you need a deposit or not if you have a guarantor.

Unfortunately whether you have a guarantor or not you will still need a deposit of at least 10 - 20% - there are barely, if any, lenders who will lend 100% LTV these days - I think your only option is to save for a deposit, and yes it can take years, but if you want a house that much..........

Is there someone who could gift you the deposit....the relative?

Sorry I couldn't be more positive.

digii_dave

I work with a young girl who has no kids, but lived with her chap, with her parents cheaply. 4 years ago when I stared working with her, she often said she wanted her own house but can’t afford it even though she had a combined income of about about 40 grand a year. This is in the sticks, so average wages. in cities she should get more.
She had two holidays aboard every year and loved shopping weekly for the latest clothes. Had plasma TV, latest mobile, went drinking and clubbing every weekend plus they had a car each. She still pleaded "I can’t save up for a deposit"

in 1983 we wanted a house valued at 15 grand and needed a grand deposit. So we gave up a car, holidays, eating out etc and got the house. I knew no one who would lend me money or act as guarantee. Back then many thought it was unwise to get a mortgage. Within 5 years it was sold for 63 grand.

So please don’t take this the wrong way as I do not know your circumstances, but my workmate and her partner eventually gave up the luxuries for a good while and is now seated in her nearly new house that she desired.

Just say "no I cant afford it" and you soon get used to it.

Due to ill health we now have a combined income of 22 grand a year (inc tax credits) with two teenage kids, but have no debt except the small mortgage so we are still saying no, still have a 13 year old cathode ray TV that works, cheap mobiles each ASDA PAYG, no eating out blah de blah.


No pain, no gain


Good Luck

LookingForward_2

Hi Kelly

We're in the same situation as you and also in Bristol funnily enough! After thinking hard, reading through various threads on here and getting family advice, we've ended up with either the save and buy later, or the Homebuy and move now option.

As much as we'd like to be in our own home now, we've opted for the save and buy later choice which suited us best. We're cutting back on everything and putting every penny that we can away and will have to do this for a few years. We've come to admit to ourselves that there is a way to get on the property ladder with a large deposit (well it seems large to us!), it just takes a while.

Hope this helps to know that there are people in the same situation as you and here's hoping that when we're in a position to buy, the house prices will have fallen even more!!