Should we get 100% mortgage?

Nicolelg

Would really appreciate any advice we can get!

My boyfriend and I are ready to buy, especially as we no longer wish to continue our rental contract next year.

we both have good jobs, but I have just finished paying off my debts and my boyfriend still has student debts and is throwing everything bit of spare cash he can at them, even though, he will not be debt free for some years.

For what we pay in rent, we could buy somewhere without finacially crippling ourselves as and we are both nearly 30 so the time seems right. But, we live in London and are really struggling to come up with 95% deposit and house prices (for what we want) are rising faster than we can save and show no signs of slowing plus interest rates are touted to rise.

So, could a 100% mortage be an option or should we just wait until the end of the year when we have the full 5%? Our real concern is that come January, we would yet again not have enough for the full 5% because of house prices rising. (This has already happened.) We also have no option of help from relatives.

So confused so all advice appreciated! thanks x

tony863

Hi,

Your situation was just like mine and now me and my wife are in the process of buying our first house. Our mortgage advisor reckons there is a real good chance of the interest rate rising again so if you are going to do it, then in my opinion you should do it before another rise in the cost!

We put it off for 6 years!!! convinced that the market was going to crash. It obviously didn't and you will never know when it will. I understand what you are saying about your deposit, but we had nothing, literally. No deposit, no money for fees or stamp duty and on top of that had 10 grand debt. We went with Northern rock and got a "together mortgage" giving us the oportunity to pay off debt, give a deposit and pay all the fees in one payment.

It works for us and it may work for you. Since securing our mortgage and property, we had the property valued and it has gone up 6000 quid already. I know it may not got up again for a while, but all the same, a profit is a profit.

I reckon you should go for it but that is only my opinion.

Hope the info helped

dean182

tony863 wrote: »

Hi,

Your situation was just like mine and now me and my wife are in the process of buying our first house. Our mortgage advisor reckons there is a real good chance of the interest rate rising again so if you are going to do it, then in my opinion you should do it before another rise in the cost!

We put it off for 6 years!!! convinced that the market was going to crash. It obviously didn't and you will never know when it will. I understand what you are saying about your deposit, but we had nothing, literally. No deposit, no money for fees or stamp duty and on top of that had 10 grand debt. We went with Northern rock and got a "together mortgage" giving us the oportunity to pay off debt, give a deposit and pay all the fees in one payment.

It works for us and it may work for you. Since securing our mortgage and property, we had the property valued and it has gone up 6000 quid already. I know it may not got up again for a while, but all the same, a profit is a profit.

I reckon you should go for it but that is only my opinion.

Hope the info helped

Very strange reading your post as my husband and I were in exactly the same position until last week! We also have applied for a 'together mortgage' with Northern Rock. It has meant we are now debt free (other than the mortgage) which is a fantastic feeling! We had waited 8 years for the 'right time' to buy had never managed to save a deposit etc. We are now awaiting the valuation survey on our first home. We will be paying virtually the same amount of money that we were for the £10,000 loan and the rent, so we are no better/worse off. Since getting married we have spent £30,000+ on rent:eek:, so it will feel fantastic paying off our own place!

Good luck...

Nicolelg

thank you so much for your reassurance. as a result, we've now booked some viewings this weekend and are speaking to an advisor tonight.

I'll keep you posted!