Strata Homes offering 100% mortgage - application success?

AbbieCadabra

a young couple i know, 22 & 23 years old, have paid a reservation fee on a new home by Strata.

i think the main reason they've gone for it is the offer of a 100% mortgage (fixed @ 5.99% for 2 years) arranged via the builders with Yorkshire Bank. It also includes the legal fees paid by the builder too.

i just wondered if anyone had applied for this or anything similar & been successful?

the house is being sold for £85,000 - 2 bed, 3 floor terrace/mews. bit of an unusual configuration as it's like a small row of terraces back2back so you only get windows on one side of the houses. never seen that design before!

the amount they've paid is £250 to reserve & they know they'll lose this if they back out, but i think if they don't get the mortgage, they get the fee back.

can't say it's a deal i'd be recommending at all, but they've done it now :eek:.

my main worry is after the 2 years fixed, how easy will it be to re-mortgage at 100%? IF they even get a mortgage in the 1st place (part of me hopes they won't ). Completion isn't due until Nov/Dec this year & if they're agreeing a purchase price now, surely prices will have dropped even more by then?

they're really excited & i'm all 'oh noooooooooo........'

happybroker

how vague is they website? I don't know how this is being set up so it's difficult to get a handle on the pros and cons of what is going on.

if the ltv is 100% in 2 years time i doubt they would be able to remortgage but exactly what will be the situation then is any body's guess I'm afraid.

The guy in the video makes no mention of who he works for so we have to assume strata, he makes no mention of their status (whole of market, directly authorised etc) or what level of service they provide which are all mandatory, all very confusing.

nw_man

That website is terrible !!

Brown text on a black background:eek:

Forgetting the fact that they need a decent website designer, their marketing pitch of 5 times salary on a 100% mortgage is truly horrific.

I cant believe the FSA allow it.

In fact, actually, forget that, I can believe it.

AbbieCadabra

well, they've had an initial 'YES' on the mortgage, so we'll see what happens when it comes to survey time...

i thought we were supposed to be back to responsible lending?!

Conrad

Something is amiss here. Barrat and Bovis and the rest can't secure 100% funding, so there is no way this little outfit can. There has to be a catch, such as the developer retaining equity or some such.

Schemes already exist like this, funded by Nationwide and others, but not 100% borrowing.