Are 100% mortgages back?

Amatheya81

Hi,

A friend of mine has recently told me that she has seen a couple of companies offering 100% mortgages again. Has anyone else seen this?

I'm hoping to move in the next year or two but it looks like my flat (bought when house prices were sky high) is in about £6k negative equity so it will be really hard for me to pay that and save up a deposit and pay off my debt. Knowing that I might be able to get another 100% mortgage would certainly reduce the amount of time I'll have to spend saving!!

DannyboyMidlands

I'm surprised that your experience with 100% mortgages and negative equity hasn't put you off them.

Amatheya81

DannyboyMidlands wrote: »

I'm surprised that your experience with 100% mortgages and negative equity hasn't put you off them.

Not realy, a deposite wouldn't have changed the fact that I have lost money on the property. It would have just meant that I paid that lost money up front instead of when I sell.

If getting another 100% mortgage will allow me to move to what I hope will be my long term home sooner rather than latter then I'm happy to take that risk again

DannyboyMidlands

Point taken but you'll be paying a hell of a lot more in interest for the opportunity to loose that money.

holly_hobby

In England & Wales 2 lenders (that I aware of)

A family offset deal is available from Marsden Building Society available up to 100% LTV, which was launched in July.

To qualify for this deal, the borrower must have a family member willing to put up at least 20% of the property’s value in a ‘charged savings account’ with the society, to which there is no access.

Also Tipton & Coseley Building Society offer a family assisted discount rate mortgage available up to 100% LTV.

It is only available for properties within the Midlands counties and a collateral charge is taken against a family member’s property.

The collateral charge can be removed once the LTV falls below 75% and the borrower’s income can cover the full loan amount.

There may be more, but I am not aware of them - I don't currently place mges, but a current mge adviser with mge sourcing sortware may know of others.

Hope this helps

Holly

Heaney81

So no 100% mortgages in Scotland?

holly_hobby

Not that I know of - but I am located in England so may be unaware of local building society/bank deals available in that partiular region.

Sorry Heaney - how about moving North of the border ..

Holly

Amatheya81

Thanks Holly. I don't think either of those would be good for me but still it's encouraging that a couple of companies have started offering 100% mortgages again. It bodes well for low deposite mortgages going forward so I'll keep my eyes open

Thrugelmir

Amatheya81 wrote: »

is in about £6k negative equity so it will be really hard for me to pay that and save up a deposit and pay off my debt.

If you can afford a larger mortgage then you can repay your existing debt quicker.

While it may seem like a mountain to climb. A review of how and where you spend your money may yield some added savings. Take a medium term view with achievable milestones. After a while it will become addictive and you'll reach your goal.

Amatheya81

Thrugelmir wrote: »

If you can afford a larger mortgage then you can repay your existing debt quicker.

While it may seem like a mountain to climb. A review of how and where you spend your money may yield some added savings. Take a medium term view with achievable milestones. After a while it will become addictive and you'll reach your goal.

Hi, Thanks for the advice. I've been a debt free wannabe for a while so I've already done all the savings, switching and have a plan in place that will put me in a position to buy again by the end of next year.
A more expensive mortgage wouldn't actually leave me that much worse off as my current appartment is part buy meaning that I am paying both mortgage and relatively expencive rent on the remaining 50%. I also pay a extreamly high service charge for the building that I can do nothing about. The appartment is a one bed where as I want to buy a 2 bed with a garden where I can rent the remaining room to a friend of mine and grow my own veg (or more to the point, my gardening enthusiast friend can grow the veg and I can cook it )