100% mortgage?

TheTortoise

Hello,

I was hoping for some general advice - is it possible and worth getting a 100% mortgage? I am a first time buyer and seriously considering getting a property to live in and rent a room out. I don't have a deposit, but would be able to afford repayments, especially if one or two people moved in with me.

I don't know whether this would be a foolish move. The rental market in my area is good (my live in landlord does it for a living so I have some advice on this).

Thanks,

TT

R_P_W

You won't be able to get one even if you want to.

ch3101

100% mortgages are the unicorns of the financial world - We'd all love them to be real.

And also, if you were "able to afford the repayments if people moved in with you", what if noone lived with you and the interest rates went up?

TheTortoise

ok I can see that was a silly question - I am very ignorant of these things hence asking for some advice - thanks for replies!

dawyldthing

my best advice is to pay off your remaining debts then save all the money until you can get 10% plus deposit and try then as you will have more options open to you. Plus I can't see house prices going up, possibly down in the long term so it will possibly pay to save long term

ACG

You have no deposit and you would want to be renting out the rooms to make it more affordable... i cant see many lenders wanting to jump at this opportunity :P

Sorry for the sarcasm, but in answer to your question no the minimum you need is 5%, and if your thinking you need to rent out rooms to make it more affordable, i would be very surprised if you pass lenders affordability - usually lenders affordability assessments are stricter than what the general public think they can afford.

Bella73

Remember you also need all the monies for things like stamp duty, solicitors, searches etc it'd not just about the mortgage when buying.

kingstreet

The only 100% products currently available are the "helping hand" type products where a family member puts up their home or their savings as security.

Unless you are buying on shared ownership in Northern Ireland, where there are true 100% mortgages available.

zarf2007

kingstreet wrote: »

The only 100% products currently available are the "helping hand" type products where a family member puts up their home or their savings as security.

Unless you are buying on shared ownership in Northern Ireland, where there are true 100% mortgages available.

I would say that if they offered 100% mortgages in London (which is in its own property price bubble anyway), and you made the lending criteria as stringent as 95% mortgages (obviously no new build/conversions), they would have a lot of takers, with little extra risk to the lender....