Are there any 100% mortgages out there?

derbyjon

A couple of questions for Alcofrolic and Euphoria1z:
1) Do you have a repayment mortgage, or interest only?
2) If three years from now, interest rates have doubled and stay that way for another three years, will you have enough slack in your budget to service the debt?

Euphoria1z

derbyjon wrote: »

A couple of questions for Alcofrolic and Euphoria1z:
1) Do you have a repayment mortgage, or interest only?
2) If three years from now, interest rates have doubled and stay that way for another three years, will you have enough slack in your budget to service the debt?

1.all mines are on interest only.
2. interest rates double from what? 0.5% to 1%? or the rate im paying? i.e max rate i have is 4.84 so that would be 9.68?
if 9.68 then probably not, most i can get away with is 8, 8.5%

but i have back up plans in place which i can use at any point in time, i just choose not to as i think i can do this with out any help.
i know it sounds like im in a very scary situation, but i have PLANNED IT, and i can cheat at any time but im not going to!!!

Euphoria1z

Brock_Landers wrote: »

Well good luck to you, regardless of the discussion I hope it works out for you.

you too mate.

derbyjon

Euphoria1z wrote: »

1.all mines are on interest only.
2. interest rates double from what? 0.5% to 1%? or the rate im paying? i.e max rate i have is 4.84 so that would be 9.68?
if 9.68 then probably not, most i can get away with is 8, 8.5%

but i have back up plans in place which i can use at any point in time, i just choose not to as i think i can do this with out any help.
i know it sounds like im in a very scary situation, but i have PLANNED IT, and i can cheat at any time but im not going to!!!

Yes, I did mean the rate you pay (including the loan used for the deposit).

How do you intend to pay off the capital at the end of the mortgage term?

(if these questions are becoming too personal, just say, I'm interested in the general concept rather than the details)

Euphoria1z

derbyjon wrote: »

Yes, I did mean the rate you pay (including the loan used for the deposit).

How do you intend to pay off the capital at the end of the mortgage term?

(if these questions are becoming too personal, just say, I'm interested in the general concept rather than the details)

i dont intend on paying it off, to put it simply. dont really want to discuss it, not because its personal, but because 95% will just go well thats rubbish, what about this, that and the other. what if this happens, that happens etc etc. i look at mortgages differently to the way others do. then people will say well what worked in the past wont work now and in the future, i disagree and we will only end up argueing. Different mind set.

tek-monkey

What did a house cost 25 years ago? I suspect a small personal loan would pay back the capital at the end of it all, or you'd sell up and still get over 90% of its new value back.

derbyjon

tek-monkey wrote: »

What did a house cost 25 years ago? I suspect a small personal loan would pay back the capital at the end of it all, or you'd sell up and still get over 90% of its new value back.

That's a very attractive concept, however you seem to be assuming house prices will increase 10-fold in the next 25 years. To support this we'd need something like a 13-times increase in average earnings over the same period. Given the level of public and corporate debt at present I doubt reality will approach anything like that level.

Ewarwoowar2

Alcofrolic wrote: »

Who says im going to lose any of my jobs. My main job is working with the NHS and I have done for a number of years. The good thing about working with the NHS is they never sack anyone (unless you steal something) and if your position isnt needed they move you into another positon on the same wage.

The NHS will go through the biggest cost cutting exercise in the history of the NHS in the next 6 to 18 months. Approximately 20% of NHS jobs will be lost. That's if labour keep in power. If they lose the next election the Tories planned cuts are worse.

geoffky

homehunter wrote: »

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.

this is how it should be done...well done to you......earned money is worth ten times borrowed money in your pocket..

Alcofrolic

shakerbaby wrote: »

Taking out a loan to put down a deposit.
Working 3 jobs to pay off a mortgage.

Un!!!!inbelievable.

Hey just hang on a minute, yes I said I work all 3 jobs to pay everything. But that includes holidaying in Las Vegas, having the full sky and broadband package paying for my car, having a season ticket to the Rugby and going out every week with my friends. If it came to it and I only had the 1 job then I would cut down on all my luxuries and I would still be able to manage.

Yes I could have saved a deposit over the last few years and not had the luxuries but I didnt, and I saw a house I liked and wanted and took out a loan for the deposit rather than waiting. No one seemed to have a problem with it and I have sufficient money to live comfortably so whats the big deal.