100% mortgages

donnacraig1984

Having just recieved a letter from my local Credit union. There was a flyer inside about mortgages, saying they now offer up 100% mortgages. can this be right?

craig

opinions4u

Possibly for "Right To Buy" cases.

Why not provide us with more detail - my initial view is sceptical, but you're the guy with the information!

EDIT: from your link, they don't really make it clear. One for a phone call I suppose.

donnacraig1984

Just had a look at there website - http://glasgowcu.com/content.asp?section=92

Craig

brit1234

Do you really want an 100% mortgage when prices are falling. That's instant negative equity.

poppy10_2

1.5% Higher Lending Charge - on top of an already high SVR, that's going to make for crippling repayments.

donnacraig1984

Dont want to buy a house as an investment, but for a home.

Craig

Fletchasketch

I would say buying a home when house prices are going down is probably a bad idea if you don't NEED to. I'm currently adding £500 a month to my savings and earning 5% on what I save, so the balance is increasing at no cost to me. Whereas, if I were to buy a property for say £200'000, I would be paying around £12'000 in Interest alone. Coupled with falling house prices, I don't think it makes sense to buy at the moment unless you can get a brilliant bargain.

My plan is to wait a year, have an extra £6k + in savings and fingers crossed the house prices will have come down and I'll get more for my money plus a better deal on the mortgage for having a higher % deposit.

fraser

i am surprised that the interest rates on those 100% products are so low, 5.89% for a 5 year fix, of course the 1.5% is a a big fee up front but not as high as some of the crazy tracker products from mortgage works etc

donnacraig1984

We do pretty much need to find a house. My Mrs was due to give birth last week, and we are staying with her parents and brother in a 3 apartment house. We've been saving up for the last 9 months we have some savings but not enough for a decent sized house. We will be waiting until she goes back to work before we go for a mortgage, plus i have 2 defaults due to fall of next year anyway.

Craig

robin_banks

donnacraig1984 wrote: »

We do pretty much need to find a house. My Mrs was due to give birth last week, and we are staying with her parents and brother in a 3 apartment house. We've been saving up for the last 9 months we have some savings but not enough for a decent sized house. We will be waiting until she goes back to work before we go for a mortgage, plus i have 2 defaults due to fall of next year anyway.

Craig

Without being harsh I think you've no chance of getting a mortgage with these, lenders will look for any excuse not to lend.

Renting isn't dead money.

donnacraig1984

Hence why i'am waiting until next year.

Craig