100% mortgages - it begins!

DervProf

beckalina wrote: »

I save £350 p/m now and I'm aiming to increase that. I completely admit that being smarter when it comes to food-shopping or price comparisons on bills will help us save a bit more but the majority of the rest goes on food and bills. I always like to have a little headroom for unknown circumstances, such as new tyres (had to buy two last month!). But if I need to save for a 20% deposit then it's just not going to happen in the next year or two.

Sounds like you are heading in the right direction. I doubt that you'll have to have a 20% deposit. Maybe with a smaller deposit, you will not get such an attractive mortgage rate, but I'm sure that won't be much of a problem. It seems that the banks are slowly offering better deals for borrowers, so I would have thought that you will be able to get a decent mortgage deal within 2 years, maybe sooner if you can save a little more.

Percy1983

I will say I am aiming for 10% deposit, life is too short.

With that I will be there soon enough at my current rate of saving.

Conrad

These smaller lenders almost always ask for 3 or 6 months Bank statments, where as your main high street lenders do not as a matter of course.

Bank statements give an experienced underwriter all they need to make very sound decisions. These people look at them day in day out and they are like sniffer hounds, spotting little trends and traites in a persons propensity or otherwise to conduct thier finances well. In effect they look for nerdy customers that are frugal and always planning ahead.

edinburgher

I have to say that I agree with the general principle of stable renting history = good for a mortgage. I've been renting privately since I was 17 (11 years and counting) and I've never missed or been late with a rent payment.

That fact alone makes my 'credit history' look crap, but the fact that houses are overpriced will sorely restrict what I can buy.

Solstice_Twilight

I have to say that I will be in line at the bank if 100% mortgages come back! I have been truely scuppered by the market crash. My ex and I bought this house in 2005, separated in 2007 and divorced in 2008, just after the bottom fell out and I was suddenly left with almost no equity in the house. I have already provided the cash to buy him out to my solicitors and taken over all our joint debts in lieu of the remainder, but they won't hand it over until he signs the papers, and he won't sign the papers until he's no longer on the mortgage... and although I've seen several independent brokers, and the value of my property has increased a tiny amountI can't remortgage with no buffer between what is owed on the current mortgage and what the house is worth.
Now that my worst of my debt is pretty much paid off (last payment comes out at the end of the month), I've been pretty strict about saving for the last few months, but it's going to be several years at the rate I'm putting aside before it makes a difference. Unfortunately, my ex is not prepared to wait for years and is threatening a court order to sell the house, and even with the money back from my solicitors it won't cover the costs of moving into a rented property. Ultimately, unless something comes onto the market to make it possible for me to remortgage the house, I'm going to end up having paid off the debts my ex and I held jointly and not only be thousands out of pocket in divorce costs (he got legal aid so was quite happy to drag everything out as long as possible) but on sale/moving costs as well.

doire_2

Yesterday I was talking to a first-time buyer with a 5 per cent deposit and they went into the Northern Bank and the bank said, 'You don't need any deposit we would just go for 100 per cent'."
Mr Norwood described the first-time buyers as "just bog standard customers" with no particular qualifications or credit history.
He said: "They were ultimately turned down but the bank did not perceive it to be any more difficult at 100 per cent LTV than 95 per cent LTV.

Says it all. I wonder how many actually get it

JonnyBravo

Percy1983 wrote: »

I will say I am aiming for 10% deposit, life is too short.

With that I will be there soon enough at my current rate of saving.

You're buying in Oldham.

Does your £2 not cover it?





For 2 houses?

undetterred

JonnyBravo wrote: »

You're buying in Oldham.

Does your £2 not cover it?





For 2 houses?

LOL and the 10p left over will buy a pint and a pea mix.

Percy1983

JonnyBravo wrote: »

You're buying in Oldham.

Does your £2 not cover it?





For 2 houses?

Don't forget the 10p, that should get me a swimming pool on one.

As it is I may not buy in Oldham and migrate to Manchester.

Sibley

Yeeeessss.
Get in there my son. HPI on the way.