FTB 100% Mortgages or Save for deposit

chicken_5

Hello,
I live in London with my boyfriend and am in the fortunate position that we can get a mortgage big enough to buy a flat (even if it will be a small one!)
The thing is I'm an impatient girl and want to do this all sooner rather than later. It will take us about a year to save 5% deposit and then we could possibly ask parents for a loan as well. My question is why shouldn’t we just get 100% mortgage and not have to save up? What exactly is wrong with them? I am sure that it tells me somewhere on this very helpful website but I thought I would just ask!
Cheers

homer_j_3

there is nothing wrong with a 100% mortgage, however you need to bear in mind that you will not get the most competetive rates and you will have to watch out for associated costs like legal costs, stamp duty, furnishing, val fees etc.

I would always recomend saving a deposit and if you really feel that you cannot wait - make sure you can afford the payment on a capital and interest basis so you can start reducing the debt to build equity.

You should really consider your budget - have you rented upto date - do you understand the cost of living etc. If you feel that you can afford the payment then get yourself to a broker who can go through all the ins and outs in more detail.