The 100% mortgage is back...

Graham_Devon

Well kinda. Well maybe. Well, actually, no, it's not at all.

However, if your parents, grandparents or any other guarantor is willing to sign on the dotted line to protect the mortgage company so they take no risk and all the reward you too could get on the boat today.

With a rate of just 6.48% fixed for 3 years, and a fee of just £1,300, and houses the most affordable since 1999 (!!!!), theres never been a better time to jump in and start living the ultimate dream.

Aldermores managing director stated "first time buyers have become disenfranchised from the housing market.....so were offering this absolute gem, which allows us to offer 75% mortgages at 100% rates, which is brilliant, and may help the housing market....err, I mean the poor vulnerable young people, though not too young, were sticking some ageism into the mix and you must be over 25".

He went on to say "we have carefully considered the guarantor in all of this, and considering we don't want to take the risk, we've been massively generous and capped the amount to be repaid by the guarantor at the original amount, which is immensly considerate of us"....."What's more, if the mortgage falls below 75% LTV, we'll even release the guarantor early....at no cost! None! Nadda. Apart from an admin fee".

"Oh, did I mention, as apart of the extra special deal, you can only get this is you go through one of our preferred partners, who will find you the correct house for our, I mean, your needs".

http://www.guardian.co.uk/money/2011/sep/05/100-per-cent-mortgage-aldermore

Pimperne1

I think some parents will see this as a way of providing an early inheritance to their children (indeed I provided the deposit for my daughter's first home a few years ago and would have done the same for my son had he not said he would rather have a new car).

Graham_Devon

Pimperne1 wrote: »

I think some parents will see this as a way of providing an early inheritance to their children

What, signing to be a guarantor?

More fool the children.

Going4TheDream

And all this tells me is that banks are still not confident on the future prospects of the housing market.

Pimperne1

Graham_Devon wrote: »

What, signing to be a guarantor?

More fool the children.

That really depends on whether you think houses are going to go down in value or whether they are going to follow their long term trend.

Graham_Devon

Pimperne1 wrote: »

That really depends on whether you think houses are going to go down in value or whether they are going to follow their long term trend.

I'm sorry, but you are going to have to explain how you think being a guarantor on a mortgage equates to an early inheritence.

Pimperne1

Graham_Devon wrote: »

I'm sorry, but you are going to have to explain how you think being a guarantor on a mortgage equates to an early inheritence.

By potentially earmarking some of the money that you have garnered in the housing market you are allowing your child to buy a house much earlier than they would otherwise be able. Its like writing a cheque and not knowing whether it will be cashed but you know if you don't write the cheque then your child might be unable to purchase a property until they are in their late 30s.

macaque_2

Pimperne1 wrote: »

I think some parents will see this as a way of providing an early inheritance to their children (indeed I provided the deposit for my daughter's first home a few years ago and would have done the same for my son had he not said he would rather have a new car).

Let me guess, your son's name is Chris Griffin and your daughter is Meg.

Graham_Devon

Pimperne1 wrote: »

By potentially earmarking some of the money that you have garnered in the housing market you are allowing your child to buy a house much earlier than they would otherwise be able. Its like writing a cheque and not knowing whether it will be cashed but you know if you don't write the cheque then your child might be unable to purchase a property until they are in their late 30s.

I have potentially earmarked money for my sons driving lessons / education fees / house / whatever else he wants.

Is that an early inheritance too then?

<rolls eyes>

Early inheritance, my fine rear.

There a stronger argument that you are risking their inheritance, rather than giving it early, AND sending them into high cost products.

Pimperne1

macaque wrote: »

Let me guess, your son's name is Chris Griffin and your daughter is Meg.

More like this:

http://www.youtube.com/watch?v=5AXWdQNzSb4

Turnbull2000

We're getting there slowly. Give it a couple of years and much more competitive 100% loans will be available, giving a massive boost to transaction levels. In many areas prices are not a problem - deposits are.

In the meantime, existing borrowers will continue to reap the rewards of the lowest mortgage rates in history.