100% Mortgage or chance for a loan and mortgage??

pepperkat

I have to move out soon from my (now) ex-partners house, will basically have no money but my monthly wages (leaving everything behind), the good thing is that my loan is paid off so only a couple little bits on credit cards (cca £800) and no other outgoings except car insurance and mobile phone. I only earn cca 15 000 (possible increase) so not much chance of savings if I put money in someone else's pocket by paying rent, council tax and other bills.

I would like something small posibly older with a chance of making it up and increasing its value (yeah I am a woman but quite tough and gained quite a lot of skills from re-doing my ex partners house including plastering etc. and really enjoy DIY!! it will also keep me occupied) I am probably only looking at property value of 40 - 60 K taking in account my small income.

I've heard about 100% mortgages, been searching the web found out how it sort of works but haven't found anyone who provides them!!!

Or would it be better to try for a loan to pay deposit (e.g. 10% off the mortgage) - what are the chances that I will get a loan and then also a mortgage? (I got a loan from bank before, only a 2500 k tho - didnt need and want anymore before, but paid every single repayment on time and its all paid off now.)

I am not of a british nationality, euoropean yes, been in the country for 5 and a half years now tho and planning to stay. always in full time employment, with my bank for 5 years, and other bank account now too. Think my credit history is quite good, only went over my overdraft few times, otherwise always paid all my bills on time and stuff.

Other thing is that i get paid cash where i work now (last 10 months) so not all my money goes to my bank account, but got all payslips and stuff. Before I worked here I had another job just (whilst I was looking for the right one to settle at for some time) for about half year as I got made redundant from previous place (place burned down!) but I worked there for 3.5 years so I think thats quite stable emplyment history too.

Anyone got an advice please, I dont have any experience in buying a property here or elswhere. Have I got a chance to get on the property ladder too???? Any ideas who provides 100% mortgages??

Thank you so much!

_Andy_

There are no 100 percent mortgages.
The loan idea won't work as no mortgage lender will accept a personal loan as a depsit.

Wutang_2

[QUOTE=pepperkat;27928591
Anyone got an advice please, I dont have any experience in buying a property here or elswhere. Have I got a chance to get on the property ladder too???? Any ideas who provides 100% mortgages??

[/QUOTE]

Yep - start saving, bin the poll, no 100 percenters. Good luck.

pepperkat

Thanx for your replies, can you read the following tho, I havent made that up, found lots of artickles like that, also I ve seen an advert about two months ago on billboard advertising 100% mortgage for new apartments near where I live, just can't remeber the company....so really puzzled up. Doest it exist or not???

What are 'No Deposit or 100%' mortgages?

Introduction

This is a mortgage which offers applicants 100 % of the full value of the property, plus up to 5% extra to cover essential expenses associated with the move.

They are designed for those moving home, remortgaging or buying for the first time but without a deposit saved.

The main features of a no deposit or 100% mortgage are:-

• There is generally no higher lending charge (HLC) even on the highest loan to value of 105%.
• House movers and remortgagers can borrow up to 105% “Loan To Value”.
• First time buyers can borrow up to 102% “Loan To Value”.
• The Interest rates are generally linked to the Bank of England Base Rate
• There is generally an option to overpay, underpay or take payment holidays.
• There are portability options available with some lenders.
• These type of mortagages are only available to PAYE employees only.

The key criteria for qualifying No Deposit or 100% Mortgages are:-

• The loan size must be a minimum loan of £25,001
• The loan size must be a Maximum loan of £250,000 or have a loan to value of “Loan To Value” 105% for movers of remortgagers.
• The loan size must be a maximum loan £250,000 or “Loan To Value” 102% for first time buyers and anyone who hasn’t had a residential mortgage in the last 2 years.
• The minimum age requirements are that the primary applicant must be at least 21 years and that all other applicants are over 18 years old.
• Income will only be considered if applicant is 21 years or over.
• The maximum age requirements are 65-70 years old unless you have proof of income

The minimum term for a no deposit or 100% mortgage is generally 10 years with a maximum term of 25 years if it is on a repayment plan. If you are on a endowment plan then the term can be up to 35 year. If you are on a pension/PEP/ISA linked mortgage then the term can be up to 45 years.
To qualify for a 100% of No Deposit mortgage you can borrow up to
3.75 times your annual income or 2.75 times your joint annual income.
You must also have a favorable Employment history this basically means that is you are under PAYE then you must be in present employment for a minimum of 3 months or a maximum of 2 employers in the last 12 months. A full 3 years employment history is required.
The bad new is that this type of mortgage is not available to self employed.
If you are a contractor then you must have a three year track record in the same employment sector.

If you are working under a contract and on PAYE then you must be on a 12 month renewable contract with at least 6 months remaining.

• A common question asked is what documents you must usually have available for a no deposit or 100% mortgage. These are the following:-
• Last 3 months bank statements and payslips.
• Last P60.
• Last 12 months mortgage statements or
  tenants reference.
• Bank statements will be acceptable to cover any gaps
  in the previous documentation in the last 12 months.
• A formal lender’s reference may still be required if the
  above documentation is unsatisfactory.

For more information contact one of The UK Insolvency Helpline's trained mortgage specialists on: 0800 074 6918 or email: [EMAIL="mortages@insolvencyhelpline.co.uk"]mortages@insolvencyhelpline.co.uk[/EMAIL]

benjo

rather pay rent and wait so many years?? to save up for deposit

Even if you 'COULD' get a 100% mortgage - that doesnt mean you 'SHOULD' take a 100% mortgage.

I completely understand anyone wanting to own their home rather than rent - completely!

Please, before you consider borrowing this amount (assuming you could), take some time and read the posts here from some of those who borrowed 100%+++ from NR, read what position they are in now that their deals are coming to an end, many cant afford to pay, they cant sell, they cant move.... their home for life is now a prison.

In my humble opinion, more haste less speed.... why buy a house with a deal that ends so often in people loosing their sleep and their homes? when by saving a deposit you save yourself thousands of pounds in interest payments, save many a sleepless night and save many, many tears when your home is repossessed. (disclaimer - this hasnt happened to all people who borrowed 100%+, Im sure it worked great for some people).

So, to your question is there a 100% mortgage available - I havent found one recently, there are some schemes which 'gift' deposits but from what I have read it isnt much of a gift since the purchase price is hiked up, valuation fee's are paid, valuations rarely meet the borrowers/vendors expectations and lenders refuse to lend that amount. So in theory yes, in reality - probably no.

beecher2

rather pay rent and wait so many years?? to save up for deposit

pepperkat wrote: »

Thanx for your replies, can you read the following tho, I havent made that up, found lots of artickles like that, also I ve seen an advert about two months ago on billboard advertising 100% mortgage for new apartments near where I live, just can't remeber the company....so really puzzled up. Doest it exist or not???

they existed in the past, but no lender is offering them at the moment.

How much is your rent? A mortgage of £60,000 would cost over £350/month, then you have council tax, maintenance bills, as well as the costs of your refurbishment. Sounds a lot to come out of £15,000 to me. You need to start saving, and for that you probably need to up your income. The other forums will help you work out how to do so.

Cannon_Fodder

The internet is full of out of date information. Do not plan your financial security on such flimsy evidence.

_Andy_

..or indeed one that states

"Bank statements will be acceptable to cover any gaps
in the previous documentation in the last 12 months."

pepperkat

Cannon_Fodder wrote: »

The internet is full of out of date information. Do not plan your financial security on such flimsy evidence.

thanx for reply, what did you mean by signature to remove? kat