who will give 100% mortgages?

meanmachine_2

jamiebraund wrote:

were looking for around 95,000 both work full time and can afford to pay around 520.00 per month

So you can afford 520 a month, but not 340 on rent? Why not just save the difference in a high saver account then, in a year you'll have enough for a deposit.

Crazy.

system15000

we've worked out we pay out 1220 per month and recieve around 2150 between us which leaves us with around 930 per month. we dont really go out much and would proberbly only spend about 300 of whats left. so we could really afford more for a mortgage

homer_j_3

jamiebraund wrote:

were already currently renting a property at 340.00 pm and have furniture and evrything else, we've been here 10 months. its just that we cant afford to save a deposit with being here

Where does the poster say that they cannot afford 520????

They state that they have not been able to save the ideal minimum 5% deposit and by saving the 200 per month will not allow them to secure this amount in one year as you will need a min 5k if you are going to go for a 95% loan to value.

Giddytimes

meanmachine wrote:

No you didn't.

You took a 95% mortgage then were hit with a 30% unsecured loan which will doubtless take you 25 years to pay off.

If you're happy with that then you seriously need to look at your finances.

I agree that the Northern Rock together mortgage is not for everyone and the Op should definately try to save a deposit. I doubt I would take one again but at the time we were very happy with it, we had a reasonable interest rate of 4.90 fixed for 3 years and it allowed us to get a foot on the ladder at a time when house prices were rising quickly. If we had waited and saved the market would have risen faster than our savings.

However the market is very different now and it could have so easily worked out different for us.

system15000

even if i put 200 in a high saving account i would still not have 5k plus legal fees to obtain a 95% mortgage. really theres not much i can do as im in a catch 22 situation ( cant save the 5% and dont know who to go to for 100%). i'll just wait for that lottery win again lol.

homer_j_3

jamiebraund wrote:

even if i put 200 in a high saving account i would still not have 5k plus legal fees to obtain a 95% mortgage. really theres not much i can do as im in a catch 22 situation ( cant save the 5% and dont know who to go to for 100%). i'll just wait for that lottery win again lol.

Get yourself to a broker. There are options available and whilst you may not get the best of rates available due to the lack of equity but if you look at it as you will be paying towards owning your own property rather than your landlords then there is still great benefit

meanmachine_2

I still maintain the correct moneysaver advice - and this is the name of the site, not "brokers flog their overpriced products.com" - is to save toward a deposit then suddenly a much more competitive set of mortgages will be opened up to you.

What the brokers won't tell you is that you'll be paying 5.5%+ in interest on a 100% mortgage, when you could get a cheap 4.4% fix on a 95%.

You should also avoid a higher lending charge as well.

To argue that, yes, you should try to get on the ladder when you're ready, is one thing, but to lumber you with an expensive 100% mortgage is quite another.

meanmachine_2

homer_j wrote:

if you look at it as you will be paying towards owning your own property rather than your landlords then there is still great benefit

That's a very odd way of looking at it.

In the first five years or so of a mortgage all you're paying is interest to the bank - aka your "landlord".

homer_j_3

meanmachine wrote:

That's a very odd way of looking at it.

In the first five years or so of a mortgage all you're paying is interest to the bank - aka your "landlord".

Take the scenario that OP rents for the next 2 years to save up your ideal deposit.

- Can you say that this will secure him a house with a better interest rate than whats available today?

- Regardless of whether he will or wont get a better rate, will he not spend the first 5 years in paying interest to the lender.

I think it is your thought process that needs looking at not mine.

With regards to us brokers flogging OUR overpriced products. I think you should retract that statement pretty quickly.

Firstly - we provide advice on products that are most suitable to our clients needs. We do not flog the most expensive product and

Secondly - we sell products of the companies in which we are authorised to do so.

But hey, we are easy targets because we spend our life correcting incompetent fools like you..

MortgageMamma

Back to the OP, the individual has actually asked where he can get a 100% mortgage from, not for "advice" on how to save a deposit. Whether a 95% or 100% mortgage is appropriate for a client depends on the clients aspirations, and the timescale in which he wishes to achieve these goals. The OP clearly wants to get onto the property ladder as soon as they can, and with house price inflation most people can sympathise with that. If the OP intends to live in the property for quite some time, then there is nothing wrong with a 100% mortgage if thats what they want. yes they may intially pay a higher rate of interest and get a less competitive deal, but when you consider the fact that the interest difference between a 95k at 4.4% and 95K at 5.69% is only 71.44 a month, then it could be worthwhile the OP taking a 100% mortgage, and getting on the propery ladder, dependant upon their circumstances and future aspirations.