Mortgage help

mommy2princess

Are there any 95% or 100% mortgages available for people who ARE NOT first time buyers?

Simon_gloster

You possibly can with some lenders, but you need to be with them, cannot borrow anymore and will have to pay all fees yourself, along with increasing the amount of equity in your own home. Thats for starters.

As for the market, i'm not sure, I doubt it though.

Just realised, are you from another board with a house thats not selling or slightly over priced?

mommy2princess

Yes that's me - my sister has just sold her house to move in with her boyfriend, but they have no deposit (she only made a few grand which she split with her ex, rest went on deposit for rented house). She's not a FTB.

Dave_Ham

Hi - there are a couple of 95% deals that would potentially be applicable but there are a few other criteria variables also.

The 100% mortgage deal is ok for 2nd time buyers but not for everyone as the bank will need to put a charge on a family members property for 25% of purchase price. There are a few other factors but depending upon family circumstances it could offer a solution.

Largely the first time buyer restrictions are around new build properties so may steer clear of these....

mommy2princess

the 25% charge would be ok as my dad would be willing - but does he need to own a certain amount of his property? I have no idea what his equity is but prob not 25%

Dave_Ham

Afraid so - they have over complicated the criteria but ultimately both mortgages added together cannot exceed 75% loan to value.

Here is an example below:
[FONT=Helvetica 45 Light,Helvetica 45 Light][/FONT][FONT=Helvetica 55 Roman,Helvetica 55 Roman][FONT=Helvetica 55 Roman,Helvetica 55 Roman]Quick Reckoner[/FONT][/FONT][FONT=Helvetica 55 Roman,Helvetica 55 Roman]
[/FONT]The following quick reckoner can be used to determine if the [FONT=Helvetica 55 Roman,Helvetica 55 Roman][FONT=Helvetica 55 Roman,Helvetica 55 Roman]Family Guarantee mortgage [/FONT][/FONT]is an option - for both applicants and guarantors:

New Home Purchase Price (A)

£
£150,000

Guarantor Residential Property Value (B)

£
£300,000

A+B = Total of Property Values

£
£450,000
[FONT=Helvetica 55 Roman,Helvetica 55 Roman][FONT=Helvetica 55 Roman,Helvetica 55 Roman]Debt secured[/FONT][/FONT]

New Home Mortgage Amount (C)

£
£150,000

Guarantors’ Existing Mortgage (D)

£
£100,000

Other Debt Secured on Guarantors’ Residential Property (E)

£
£10,000

Value of guarantee (which will equal the New Home Mortgage above 75% loan to value) (F)

£
£37,500

C+D+E+F = Total Debt

£
£297,500

[FONT=Helvetica 55 Roman,Helvetica 55 Roman][FONT=Helvetica 55 Roman,Helvetica 55 Roman]Total Debt / Total of Property Values = Total loan to value (which must not exceed 75%)[/FONT][/FONT]

[FONT=Helvetica 55 Roman,Helvetica 55 Roman][FONT=Helvetica 55 Roman,Helvetica 55 Roman]66%[/FONT][/FONT]