Anyone recommend a 100% and above mortgage?

sidneysides

We are purchasing a new build for 330,000 and need another 20k on top to pay off credit cards and loans etc. We need to pay of these in order to be able to afford the monthly payments on the mortgage, as we're making a fairly big jump in the market (part ex current house for 215,000)

It actually works out that we need abou 107% LTV.
Northern Rock seemed good, but on purchases over 300k, you have to have 90% LTV then a MAX of 30,000 as a loan. This only brings us to 327,000, which is about 99% ish.

Do all mortgaes over 100% work in this way?

Any recommendations, or any advide would be appreciated.

MortgageMamma

I think hsbc have just started doing something similar, bu as they don't sell to brokers you'd have to check with them. Last time I looked mortgage express had one of these products also but much more expensive than northern rock.

Your only other options are perhaps to be a bit more cautious and borrow within your means,.

sanfrancisco

It will also depend on how much you earn. I guess quite a lot if you are buying a house worth 330k. Why don't you pay off the 20k then move?

sidneysides

sanfrancisco wrote:

It will also depend on how much you earn. I guess quite a lot if you are buying a house worth 330k. Why don't you pay off the 20k then move?

We only earn just enough to pay the mortgage and live a comfortable life (combined 74000 income)

maryjane01

Hi, I don't mean for any of this to be rude. I am in a similar position to you (combined income just over £70000) my partner came into our relationship with a lot of credit card debt (over £10,000 a year ago) which he has got down to about £3000. And we are purchasing a property now. £330,000 is a crazy amount we would not even be able to consider, especially because of the extremely bad interest rate you will be on. We got an offer in principle for Northern Rock for £270,000 at a rate of 5.99. I believe we could have borrowed more but the rate would have been something like 6.5%. In my opinion that is too high a rate for a property you have no equity in. Buying a new build there is nothing you can do to improve the property and therfor increase its value and increase your equity in the property. Maybe ask yourself why you owe £20,000 on debts and loans and have no equity even though you have already owned your own home (my partner has a property which we are retaining as BTL, my savings are for stamp duty, legals, and home improvments, hence our position for having no equity)? Perhaps you want a lifestyle you really can't afford? It is better to have a reality check now rather than when you are in masses more debt.

What we have settled for is a property costing £232,500 and we will be having a lodger. It is a property that we can do a little bit of work to to hopefully increase its value. Visit the debt free wanna be board for a glimpse of what your life might end up like if you are not careful now.

sidneysides

We've given it some thought and you're right.
We've decided to stay where we are, the house is worth £225000 so we are going to remortgage at 95% LTV based on that value, which will pay off the debts and see us live comfortably. It's not an ideal solution, as we won't have any equity in the property until the price naturally rises, but this will then MAKE us stay debt free if we want to move in the future.
We have made a new budget, and both realise that, if we want to move in 5 years time we HAVE to stick to it.
We've never really denied ourselves anything in the time we've owned houses (5 years) so now is the time to start.

Disappointed yes, but your posts make sense.

Ta!

MortgageMamma

fantastic, you have made the right decision, i don;t think you will regret it, good luck with the future, and keep reading the moneysaving forums to make your money work harder

BOL

MM