Are there any 100% mortgages out there?

annberlin

I am reading all your comments with interest. I bought my first house in 1972 with a deposit of 10 % and an income of £100 per month. My memory is sketchy but I think my payments were £80 a year, through job commitments we relocated to England where we bought a house at twice the value we had in Scotland and at first we could afford the repayments but think the interest rate topped 15% and we really had to make ends meet. Times were hard but we made it through. I think what am trying to say where there is a will there is a way . Hope you all succeed in what you want to do.

Regards Ann:beer:

the.ciscokid

PROLIANT wrote: »

What an absolute load of crap!

I have been scouring the internet for a 100% mortgage and keep coming up against the "nay Sayers", house prices are low, I have found several houses that I could buy if I was lent the full amount for the mortgage, but they all say no, maximum 90%.

House prices are decreasing, so the moment you take out a mortgage you are in negative equity. If you then lose your job (within the next few years, since prices are going nowhere fast with the rising unemployment) you are up the proverbial creek without a paddle. Need I remind you 100% mortgages are one of the main reasons we are in this mess (Northern Rock for example).

PROLIANT wrote: »

Ok so I could save £1000 per year, it will take me 8 years to save the 10% deposit for an £80,000 house, the housing market could have changed dramatically by the time I have the deposit saved up i.e. prices go up so I cant afford a house

Bluntly, if you can only save £1000 a year, you cannot afford a house.

I presume you are renting at the moment? Renting a house is cheaper than paying a mortgage at the moment, and interest rates are only going to go up from here - so mortgages will become more expensive. That doesn't even begin to take into account the running costs of a house.

Maybe you are renting something A LOT better than you are planning to buy... and that is the reason you are only able to save £1000 - in which case, downgrade and save more.

PROLIANT wrote: »

bloody crazy country, favour the rich and wealthy at one extreme and reward the unemployed "can’t work won’t work crew" benefit scroungers at the other,
so the working man in the middle never gets a chance, this crap about saving is absolutely absurd, how the hell is any normal working family supposed to get on the housing ladder if people keep knocking them off!

Crazy country it is, but this is entirely based on the fact that everyone thinks they are owed something, and deserve it - hence the "can't work, wont work" people you mention.

Saving is not crazy - why do you want to spend you life in debt to a bank anyway? Over the life of your mortgage you'll pay off double what you borrowed. Better to rent, and pay less and save. When you do then have a decent deposit you'll pay less for the mortgage, and probably less for the house as over the next couple of years as prices are going to fall.

Wutang_2

Sorry Cisco but thats mostly rubbish

the.ciscokid

Wutang wrote: »

Sorry Cisco but thats mostly rubbish

Care to enlighten me?

the.ciscokid

I see, you are a property developer/ investor, and you are not happy with me saying house prices are decreasing and will continue to decrease.

Alcofrolic

I have to admit I had to take out a loan to get my deposit or I wouldnt have been able to buy. I got a good deal through my bank which will be paid off in 5 years. After budgeting everything in (including food, entertainment and emergency fund) I still have over £200 a month to spend on whatever I want. So im planning to put that away in an ISA (as on my current mortgage I cant overpay) and then put a lump sum onto the mortgage. After the 5 years when my loan is finished the money I paid back on the loan will also go on the mortgage so I can repay it early as I never had this money so I wont miss it.

Its not going to be as easy as it sounds though. I currently work 3 jobs (1 Full time and 2 part time) to be able to pay everything but if you want something you have to put the effort in to get it.

Euphoria1z

agreed alcofrolic, im doing similar, loan to fund a property deposit, that will be paid off in 7 years. im currently working 2 jobs, 1 full time and one part time, both shiity wages but permanent position. have the weekends free to spend time with my family (as i work 7am-10pm) but should i need to, i can get a 3rd job over the weekend. Every thing that ive done/planned was my own choice, because i also wanted to change my financial future but your right, it aint easy, ive underestimated how long 7 yrs is etc! (paying off 2 loans= £370 pm, once thats finished things should be better for me) but nothing ventured, nothing gained and all that...

herbiesjp

To Alcofrolic & Euphoria1z:

Did you both apply to a bank for a loan disclosing it was going to be used as a deposit on a property purchase?

tek-monkey

The SE scheme I'm using lets me use the SE portion as my deposit, so I don't need to save one. I also don't own all the house though!

puppy8910club

BANKS wont give you a mortgage if you declare the deposit is from a loan. I guess if you have not told them and they find out you could be in trouble...

You also have to budget to have £100-£200 spare each month (that you will not spend) for emergencies. I.e Car needs service , Freezer stops working etc.