100% Mortgages

<sebb>

matt.mcginty wrote: »

Thanks Tara - no doubt it shows that I'm relatively new to all of this but renting in London I feel that I would likely be paying less per month for a mortgage and getting more from it too. Of course there are people in worse situations but I'm so keen to get property that the prospect of saving for another three years is daunting. Congratulations on your savings though, that gives me some hope!

I live in London too, and have worked out that if I had the mortgage on the property I rent, the interest would be about £50-£100 more than my rent, so I don't see this as dead money at all.

The landlord still makes money out of it though because he bought the flat so long ago that he didnt pay anywhere near what it's now worth.

tara747

verytricky69 wrote: »

Single people can pool together- we've got several friends who are buying together.

Why should EVERYONE own a house anyway?

You cant get a 1bed flat for less than £150k here

Please ,please FTBs do NOT do this. It is complete madness and smacks of the desperation of the last gasps of the boom c. 2007. :eek:

verytricky69, have you done this yourself and do you *honestly* think it's a good idea?

tara747

<sebb> wrote: »

I live in London too, and have worked out that if I had the mortgage on the property I rent, the interest would be about £50-£100 more than my rent, so I don't see this as dead money at all.

The landlord still makes money out of it though because he bought the flat so long ago that he didnt pay anywhere near what it's now worth.

Can you give us the figures, and what sort of deposit would that involve?

Psychological_2

Great post Regshoe, pretty much sums up my problem and I am a mid 20s graduate... how did you know?

verytricky69

verytricky69, have you done this yourself and do you *honestly* think it's a good idea?[/QUOTE]

yeah- we have and its taken a long time-. The interest we are paying is £1000pm renting a similar property would cost £1500pm. this way we'll be paying the mortgage off too. We are in it for the long term so happy we are making the right decision (it was a difficult one)

I also think you are right about friends buying together- not the best idea.

tara747

verytricky69 wrote: »

tara747 wrote:

verytricky69, have you done this yourself and do you *honestly* think it's a good idea?

yeah- we have and its taken a long time-. The interest we are paying is £1000pm renting a similar property would cost £1500pm. this way we'll be paying the mortgage off too. We are in it for the long term so happy we are making the right decision (it was a difficult one)

I also think you are right about friends buying together- not the best idea.

My question was 'have you bought with friends?', not 'have you taken a 100% mortgage?' but I should have phrased it better.

100% mortgages = not a good idea really
Buying with friends = complete madness

kriss_boy

new_home_owner wrote: »

If your in a steady job with a stable income and can afford the repayments then its not a problem,.

But from a lenders point of view is it not slightly concerning that people may be in stable jobs with steady incomes but have no savings whatsoever?

I think particularly with young people in full time employment living at home with their parents its pretty inexcusable to have no savings whatsoever. I know someone thats 24 and been in full time employment for 8 years. She thinks 7K of savings is impressive.....

olly300

100% plus mortgages will come back. They did after the last recession to allow people to move from one property to a larger property who where in negative equity. Though personally I don't think FTB should be allowed them.

angel.cake_2

poppysarah wrote: »

Independent living should be possible in the UK on low wages without "living off your parents" and you're just missing the point too - £52k should buy you something perfectly acceptable.

It doesn't because of the easy credit system that finally broke - the credit crunch happened because some assets were considered to be worth insane amounts of money.

When I started looking for a house in late 2003 I watched house prices go up astromonically as people watched telly and painted the walls magnolia, within a year they were almost double.

Magnolia and beige doesn't make your house worth so much more.

Don't know where you live but clearly not in the real world. A studio flat where I live is £99k. End of.

angel.cake_2

100% mortgages should return. Easy bankruptcy from reckless spending should end.