Is there any way to get a mortgage with no deposit?

natalieh4eva

:hello: Hi all.

Just wondering if anyone has any advice. Firstly are any lenders are doing the 100% morgages again, or is there any schemes to go down in which a deposit isnt needed. Its so hard paying rent and trying to save a deposit

Dave_Ham

Only 100% mortgage relies on family member putting their equity as a charge for the bank (security)

There are a load of other components including a high credit score and it being easily affordable in your own right..

Good luck

natalieh4eva

What if their mortgage was virtually paid off though hun? arghh the affordability is not a problem to pay the mortgage. In fact we pay more now to rent than we would by a mortgage. its just the initial deposit x

Dave_Ham

There are bundles of criteria, but nearly paid off sounds like it would be ok.

They require something like at least 25% share of what your mortgage will be..

Additionally, your parents would need to be less than 60 years old (I think)

If you Google "Aldermore" it is called a family mortgage, not sure if you can go direct or need to go through a broker.

It is definitely 100% and called a family guarantee mortgage...

natalieh4eva

Aww thanks hun yeah they are under 60. So what are the downfalls of this mortgage. Ovbiously I am guessing their credit would be somewhat affected? x

Dave_Ham

Nope - you are the one/s that are credit scored and therefore it is just their property at risk if you do not pay..

natalieh4eva

Fantastic hun I will check it out!! Thanks xx

poppy10_2

natalieh4eva wrote: »

arghh the affordability is not a problem to pay the mortgage. In fact we pay more now to rent than we would by a mortgage. its just the initial deposit x

But affordability could be a problem if/when interest rates rise from their current 300-year low to return to their long term average, which is between 4 and 6%.
Also the matter of "just the initial deposit" is important, if you don't have the financial discipline to save up a deposit then you may have difficulty coping with problems with illness/redundancy/maternity or increases in interest rates.

natalieh4eva

The monthly payments will be fine even if they increase as both me and my partner both have loans which are due to end this year amounting to 500 a month. We have good wages, I work as cabin crew and he is engineer so income is steady. I have never not had a job and never missed a payment our rent or bills. the reason we havnt saved is because if them loans and had a few holidays. If there is no other scheme we will obvi have to wait til loans end and save up. but was just making a general enquiry as my tenancy agreement is due to renew and the landlord I have has my house up for sale.

betmunch

natalieh4eva wrote: »

Aww thanks hun yeah they are under 60. So what are the downfalls of this mortgage. Ovbiously I am guessing their credit would be somewhat affected? x

Lets not forget the slight downfall of the posibility that if the loan doesnt get paid not only could your house be repossessed, but also the house of your parents.