Looking for a 100% mortgage..

bobbarley

My girlfriend and I are currently renting a small apartment in Manchester. It's rather pokey, in a rough area of Salford, and we've had to make around 10 complaints to the estate agent so far ranging from broken appliances to insect infestations.

We've decided we want to buy our own place as soon as possible, however we only have about £2,500 saved up. We think we need to get a 100% mortgage as the money we've saved will probably only just cover fee's.

We've looking for a 90-100k mortgage over 30 years, like we say 100% mortgage. Probably something that's fixed for the first few years, then we can re-mortgage later on to get a better deal. I earn £20k a year, my girlfriend earns 16k + a 1k bonus.

Altogether I think we have about £200 going out each month, this is for a small loan, mobile phone contract etc.

Can anyone suggest a good company for getting a 100% mortgage? I've had a quick look around and can't find anywhere!

homer_j_3

I would get yourself to a broker to be honest if you have not had much success. Also as you are new to this, it may be worth you sitting down with somebody who can explain things and show you how to avoid the pitfalls etc.

Your saying that you earning a basic of 36k and that should be sufficient for a 100k mortgage even with a £200 outgoing (a lender will only normally take loans and/or credit card payments into consideration).

Whats your credit rating like, any problems in the past that you are aware of?

Soulistic

You also might want to check places like https://www.moneysupermarket.com/Mortgages to get an idea of what you'll be looking at so that you won't be completely surprised if the broker does say something out of the blue.

bobbarley

I think my credits ok. I've had a couple of credit cards declined in the past, but I've had more than I've had declined. I had no trouble getting a small loan last year. My girlfriend has never been in debt, so she's never had to borrow a penny in her life.

I've had a look on MoneySuperMarket and we know we should be able to get about 90k for a small terrace house somewhere. We've just not sure who offers these types of mortgages at the moment.

So far I've seen that Natwest, that's about it. Obviously we've scared about the prospect of negative equity, so would just have to cross out fingers and pray that the property goes up in value and not down.

Cobi

I had good dealings with the Yorkshire Building Society on a 100% mortage last year.

http://www.ybs.co.uk

homer_j_3

Natwest are not the best for 100% as they include a Higher Lending Charge (HLC) which may mean you are in negative equity from day one. HLC is an insurance policy they take out against you defaulting and being reposessed. It has no benefit to you but they will charge you for it and as you have no savings put to one side as such, you will have no option to add to loan.

Yes look on Moneysupermarket.com and look on moneyfacts.co.uk and look at anything you can but the bottom line will be that if you choose the wrong deal, like you could have easily done with the Natwest then you may live to regret this.

I would also ask yourself the question is all the worry and hassle worth it because a fee free broker will not charge you, be able to answer all your questions and explain things which you may not fully understand on face value of written text on website.

Once you get a good understanding of what to look for or to avoid in a mortgage you may not need to use a broker in future but for your first time out, I would really encourage self-research but ultimatley say it may be worth your while using a broker.

I deal with a lot of First Time Buyers and even with the best research in the world I find that you will not know what you want to start with which makes your job 10 times difficult. A broker can organise your thoughts, help you work out what you want by giving you things to consider and by helping you discard the not neccessary thoughts that jumble up what you are trying to do - I.E simplify your situatiion, explain your options and the considerations you will need to bear in mind and then tell you what the best option is and the reasons why.

If you have time on your hand I would get your credit file so you can ensure there are no hidden nasties that you are not aware of. https://www.annualcreditreport.co.uk for a free one. You just need to sign up for a free newsletter but its free and we like free!

bobbarley

Thanks very much for your advice, it's really appreciated

dominicadatia

HSBC currently have a "Greater than 90%" tracker mortgage at BoE base rate + 0.94 (a little high, it used to be 0.79, I am on this one) which is ok,6.44% and you can leave whenever you want. There is some arrangement fee though.

bobbarley

Greater than 90%, does that mean you still need a deposit? We can't really afford to hang around, thus why we want to take a gamble and go for a 100% mortgage. hopefully a year or two down the line we'll re mortgage for something better and proper.