First time buyer - Looking for a 100% Mortgage

Udai

As summed up in the title, I am fed up of renting and spending £1,200 per month on what should be going towards my own mortgaged house. The only trouble is, and a big problem at hand, I have no money to put down as a deposit!

I heard a while ago that there were some government schemes to encourage first time buyers to purchase new build properties. Is anyone aware of any companies doing this?

Any advice would be much appreciated.

ACG

The only 100% mortgage on the market requires a parent or grandparent to act as guarantor for anything above 70 or 75% or the mortgage.

You might get a 95% mortgage on new builds but you need to speak to the developers as they usually have agreements in place with lenders.

Other than that, you need a 10% deposit. You might just have to move to a cheaper place for a few months to save up or back home if thats a possibility.

CBR600F_2

Rent costs you £1,200 per month? Where do you live, Dubai?

Udai

Next best thing CBR, London.

I've spoken to Connells who offered a deal where my parents would have to put there house as a guarantee against mine, unfortunately my dad wasn't too keen to guarantee his £800,000 house against a £170,000 one that im looking to purchase!

ACG

Yup, thats the only product on the market that will allow you a 100% mortgage.

CBR600F_2

To be frank, if I had any kids, I wouldn't want to be be the guarantor on their homes either.

How much can you save? i.e How long is it going to take you to save a 10% deposit?

maninthestreet

Whereabout in London are you currently living, and where is the property you want to buy for £170,000?
Can your parents 'gift' you the deposit?

Udai

I'm renting in NW9 but looking to move out of London, to the outskirts. There was a little bit of sarcasm in my previous post, I didn't expect him to act as a guarantor, you would have to be crazy to!

Other options are 2 years to make a 10% deposit, 1 year for 5%...but then would need to take into consideration other costs such as possible renovations, not sure if I would be liable for stamp duty or the seller is?

I think I will give it some time and save up a little bit more, I was just hoping for an option to get out of this rental business. Its just paying someone elses mortgage when it should be paying mine!

beecher2

Wouldn't you be able to get rented property in the outskirts for less than £1200, enabling you to save quicker? A houseshare would be the cheapest option.

originalmiscellany

I agree! If it's 1200 a month, then moving out could help you get some savings. It's quite invasive, but if you post an SOA (Google it) people will help highlight how and where you can save money, which could well free up some money every month so that in a year or two you will be in a very different position.

Udai

An SOA? I haven't heard of it before but I will give it a shot. Thanks for the advice.

£1,200 for a 3 bedroom house, we're a little family with 2 small children so houseshare / smaller house isn't really an option.