100% Mortgages

angel.cake_2

Negative equity is only a problem if you want to sell or remortgage. Otherwise, just sit it out until it rises again.

iB1

KS1977 wrote: »

Yes I do...as I mentioned in my post, it all depends on circumstances. I am a FTB and do not have enough savings. Therefore one of my options could be the 100% mortgage! I earn enough money for it to be ok......How else would I get on the property ladder? As with housing and their prices, you can never judge what will happen, but if it means me getting on the property ladder, then so be it.

But everyone is entitled to their opinion, that's what this forum is about. We will just agree to disagree.

If you earn enough money for it to be OK, you should be able to stash away some sort of money for a deposit. You can get on the housing ladder by waiting a while longer and saving. no-one needs to buy a house. If 100% mortgages re-appear, then house prices will start racing away again. So you'll have a house, but you'll be paying over the odds for it.

tara747

KS1977 wrote: »

Yes I do...as I mentioned in my post, it all depends on circumstances. I am a FTB and do not have enough savings. Therefore one of my options could be the 100% mortgage! I earn enough money for it to be ok......How else would I get on the property ladder? As with housing and their prices, you can never judge what will happen, but if it means me getting on the property ladder, then so be it.

Um... save for a deposit? As iB1 says, you earn enough to pay the mortgage so saving a deposit shouldn't be a problem.

sunshinetours

Yes but when prices are rising in double digit annual growth (which they aren't now) then that 5% or 10% keeps getting bigger aned bigger so surely you can see how this can be difficult

Not that I am suggesting we should see a return to irresponsible lending in any shape or form

The issue has more been IMO, irresponsible lending based on too large a multiples of salaries combined with too high a LTV (ie over 100% mortgages)

The banks should (and have recently) limit their exposure by adjusting the max LTV they will give. Obviously if they think the prices will come down then a lower LTV will be permitted. However in a period of stagnation or small growth I still don't see anything fundamentally wrong with 100% mortgages and strict multiple lending

Not everything has to be black and white

KS1977

I agree sunshinetours.

With regards to people saying if I can pay for one then why have I not saved......I would have saved before, if I had the job that I have now. As I said, everyone has different circumstances....If it was possible, I would have done it by now, but it hasn't been possible. Short of winning the lottery, the option is 100% mortgage.

iB1

KS1977 wrote: »

I agree sunshinetours.

With regards to people saying if I can pay for one then why have I not saved......I would have saved before, if I had the job that I have now. As I said, everyone has different circumstances....If it was possible, I would have done it by now, but it hasn't been possible. Short of winning the lottery, the option is 100% mortgage.

But surely another option is to start saving now? What happens if 100% mortgages don't come back? Would you then not ever buy?

poppysarah

KS1977 wrote: »

I agree sunshinetours.

With regards to people saying if I can pay for one then why have I not saved......I would have saved before, if I had the job that I have now. As I said, everyone has different circumstances....If it was possible, I would have done it by now, but it hasn't been possible. Short of winning the lottery, the option is 100% mortgage.

If you really can't save then DO NOT HAVE A MORTGAGE.

If you can save, just not enough, write to your MP about the House price inflation that's ruined your chances of getting on the ladder.

Do not buy a % of a house or flat. That's just mad.

sunshinetours

iB1 wrote: »

But surely another option is to start saving now? What happens if 100% mortgages don't come back? Would you then not ever buy?

In fairness I don't think KS1977 worded it well if he/she is saying that is the only option. Obviously that is an option but where do you live in the meantime - if you can live at very low rent with parents/friends etc then fine, otherwise... ???

If you get a 100% mortgage then you are then effectively from day 1 paying off capital thereby reducing your LTV if prices stay stagnant or rise in any shape or form

Banks offering 100% mortgages in a period when they believe there is any chance of a decent fall in prices probably isn't going to happen as we can see currently

heffsta

KS1977 wrote: »

I agree sunshinetours.

With regards to people saying if I can pay for one then why have I not saved......I would have saved before, if I had the job that I have now. As I said, everyone has different circumstances....If it was possible, I would have done it by now, but it hasn't been possible. Short of winning the lottery, the option is 100% mortgage.

And what happens if you lose the job you have now in the next few months/years and have a big monthly mortgage to pay?

sunshinetours

heffsta wrote: »

And what happens if you lose the job you have now in the next few months/years and have a big monthly mortgage to pay?

Probably not a lot different from what would happen if he had a 95% mortgage really........