Are there any 100% mortgages out there?

simran_2

this might be helpful.

http://www.money.co.uk/mortgages/100-mortgages.htm

benjo

"I was under the impression that house buying related fees were absorbed in the mortgage so you didn’t have a huge financial outlay"

An example of fees associated with house purchase (have included costs associated with my purchase for example only)

• Deposit in my case 40% - but really you are looking at a minimum of 10%.
• IFA/broker fees - fee free, but some charge 1.5% ish of the total mortgage, payable up front or upon completion - this cannot be added to your mortgage.
• Mortgage product fee - some free others upto £1500, most can be added to the lifetime of the mortgage - some have to be paid upfront.
• Solicitors fees - £600 (ish) upwards depending on purchase price - payable prior to completion, you cannot add this to your mortgage.
• Valuation/survey fee - £250 (ish) upwards - depending on which survey you go for. Payable up front, you cannot add this to your mortgage.
• Removal costs £500 ball park figure, again depends how much you are moving and how far.
• Chaps fee £30 taken in addition to your first mortgage payment.
• Buildings insurance ???
• Payment protection insurance???
• Critical illness/life cover ???
• Chancel Liability insuance ???

The only fee that you can possibly add to your mortgage is the product fee, everything else has to be paid for in cash - ie you cant take out a loan to pay these (in theory).

With the greatest respect if you can only manage to save £1000 per year, then you probably cannot afford to maintain a house - unless your mortgage is substantially less than your rent or you happen to be a builder, with a brother who is an electrician, father who is a plumber and cousin who is a roofer . Im not knocking the amount of savings you are making, I think any savings are great - just really saying how expensive houses can be to look after _pale_

Alcofrolic

Im currently in the process of buying and what I have to pay out at the moment adds up to this:

£3900 - 5% deposit
£499 - Broker Fee
£592 - Solicitors fee
£499 - Mortgage arrangement fee

My valuation is in with the mortgage but im guessing I also have to pay for a survey so thats about another £300.

I have £6000 to cover these but may need to borrow more from my family for other little things that crop up.

It sure isnt cheap or easy this buying lark.

Kildare

I would recommend moving back home with your parents (if its possible) in order to save a deposit. It's not the ideal situation I know, but my OH and I did it.
My parents agreed to charge me bare minimum rent (a bit towards the food really) on the understanding that I was saving all I could towards a deposit. It meant only seeing the OH on weekends for about 2-3 years as we lived an hour and a half apart, but it was worth it in the end. We bought about 5 years ago and we're in a strong financial position, so now the housing market has dropped we're not in negative equity.

sarahscott424

Thanks for all your replies folks.

My current situation, like many others, just seems incredibly frustrating.

My partner and I both earn a decent wage, we have good credit history, but it would take us years to save a 10-15% deposit. Our level of income means we are not eligible for the LIFT scheme. Moving back in with parents is not an option as we live and work 3 hours away from them, a commute which would be simply possible.

Other than taking out a loan to cover a deposit, which would be the height of stupidity if you ask me, we have no option but to continue renting forever, or until we win the lottery. So in other words, we'll never own our own house.

This is made even more frustrating because a mortgage would be less than the rent we pay. And no, moving to a cheaper rental property would not solve the problem, as our commuting costs would then increase.

Unless I'm missing something, this seems unfair to me. All suggestions welcome though

homehunter

not_tonight_josephine wrote: »

I understand your frustration, but if you can only save £1k per year then how are you going to cover all the non mortgage related costs of the purchase (fees etc) even if you get a 100% mortgage? How will you furnish the house? How will you pay for unexepected costs if your boiler/washing machine/fridge freezer goes wrong?

We are too obsessed with home ownership at any cost in this country, I personally think we need a cultural change towards a more European way of thinking with the legal framework to support it ie long term secure tenancies - until this happens I can understand why nobody wants to be a tenant, you spend your life at risk of being moved on with only 2 months notice!

Would agree - after renting for a number of years it looks as if I am finally about to purchase my first home. Had we had more rights as tenants (from fixing a bookshelf to the wall to other more important needs!) we might not have felt the need to purchase. I have to admit, renting is far cheaper than buying/owning your own home, but I hated the lack of control and the feeling that you were just lining someone else's pockets. LLs don't want anything to do with tenants, they just take the money. [EDIT: I should say, some LLs! :0)]

While renting we have not bothered to buy a car (made sure we were within walking distance of supermarkets and transport), and we have not purchased Sky subscriptions, new TVs and the latest gadgets. We've made do with hand-me-downs and what's there already, treating ourselves to a washing machine (we needed one) and a two-seater sofa (again, we need something to sit on!). We did all this so that we could save for a house deposit and still have the occasional holiday and days out, and we do not feel deprived in the least. It's taken us a good 2-3 years but we have a deposit and we are hoping to secure an 80%LTV mortgage subject to valuation. Yes, I think we get a bum deal from this Government as middle earners (and as a student who started just in time for laons and fees!!) but I am more than happy to save for what I want, rather than get a whole 100% loan or use credit cards. Simple as that.

homehunter

sarahscott424 wrote: »

Thanks for all your replies folks.

My current situation, like many others, just seems incredibly frustrating.

My partner and I both earn a decent wage, we have good credit history, but it would take us years to save a 10-15% deposit. Our level of income means we are not eligible for the LIFT scheme. Moving back in with parents is not an option as we live and work 3 hours away from them, a commute which would be simply possible.

Other than taking out a loan to cover a deposit, which would be the height of stupidity if you ask me, we have no option but to continue renting forever, or until we win the lottery. So in other words, we'll never own our own house.

This is made even more frustrating because a mortgage would be less than the rent we pay. And no, moving to a cheaper rental property would not solve the problem, as our commuting costs would then increase.

Unless I'm missing something, this seems unfair to me. All suggestions welcome though

I think someone earlier said that if you can't afford to save for the deposit, you'll still have hard work affording to buy even with a 100%LTV... I'm just going through the process and even with the research I've done, I'm amazed at how much more it costs to buy and own a home! We've managed to avoid stamp duty luckily, but...arrangement fee, valuation fee (even if added to the mortgage, you still got to pay in your repayments per month, plus you need to choose which type of valuation/survey you go for), land registry fee, solicitor's fee, then there's life cover, mortgage protection insurance if you need it, buildings and contents insurance, money transfer fee, then the removals fee, the cost of purchasing essentials to furnish your home, then you might find your bills are higher (we're moving up two council tax bands and inevitably the utilities will rise, given it's a 3 bed detached), any work you need to start doing to the house...um, actualyl I'll stop there, it starts to give me the willies

It is a rubbish situation, I know, but there's more to consider than just the mortgage. It's what comes during the process and after you also need to think about.

sarahscott424

I know there are a lot of other outgoings to consider other than the mortgage itself, but I have budegeted for these things too and I am confident that I could afford them.

Renting in the city is extortionate, about 30% more than the cost of the mortgage I would like to get. And like I said earlier moving further out the city doesn't help because the cost of commuting then increases.

Apologies to all for my ranting nature, I'm just frustrated.

homehunter

sarahscott424 wrote: »

I know there are a lot of other outgoings to consider other than the mortgage itself, but I have budegeted for these things too and I am confident that I could afford them.

Renting in the city is extortionate, about 30% more than the cost of the mortgage I would like to get. And like I said earlier moving further out the city doesn't help because the cost of commuting then increases.

Apologies to all for my ranting nature, I'm just frustrated.

Don't apologise!
I don't blame you for being frustrated. All this house buying stuff is expensive, and house prices are still a bit too high when you way it up against salaries, more so in certain parts of the country. Grrr :rolleyes:

beecher

sarahscott424 wrote: »

I know there are a lot of other outgoings to consider other than the mortgage itself, but I have budegeted for these things too and I am confident that I could afford them.

Renting in the city is extortionate, about 30% more than the cost of the mortgage I would like to get. And like I said earlier moving further out the city doesn't help because the cost of commuting then increases.

Apologies to all for my ranting nature, I'm just frustrated.

Could you rent a room in a shared house to cut down costs? I could never have afforded to rent anywhere alone and it'd give you the chance to save a lot more for your deposit.

You could also go onto the Debt Free Wannabee forum and post a Statement of Affairs to get advice on how to save more than you think you can by saving on bills, cancelling Sky, gym, buying lunches etc.