100% mortages

Altern8

What do you think of 100% mortages and what companys offer them?

Cheers
Craig

Shambler

Only go 100% if you really can't afford a deposit since you will be paying higher interest.

If you are like me and renting it can make it impossible to save up a deposit so 100% allows me to get on the property ladder.

Loads of lenders offer them, I have been recommended http://www.mortgage-express.co.uk/.

AndrewSmith

But remember that what is right for one person may not be right for another.

Shambler

AndrewSmith wrote: »

But remember that what is right for one person may not be right for another.

Agreed, always seek the advice of an independant financial advisor.

meanmachine_2

Shambler wrote: »

Only go 100% if you really can't afford a deposit since you will be paying higher interest.

If you are like me and renting it can make it impossible to save up a deposit so 100% allows me to get on the property ladder.

Loads of lenders offer them, I have been recommended http://www.mortgage-express.co.uk/.

If you can't afford a deposit how the hell can you afford a 25 year mortgage?

Hopefully, over the next few years lenders will follow HSBC and end the 100% nonsense.

That'll help keep prices in check and thereby allow everyone out of the market to SAVE for a deposit.

Deposits are there for a very good reason - to ensure the buyer starts off with a small equity buffer.

I know house prices only ever go up (except when they don't), but the concept of a deposit hasn't just been invented to frustrate people.

It's there for your OWN GOOD.

Shambler

meanmachine wrote: »

If you can't afford a deposit how the hell can you afford a 25 year mortgage?

Hopefully, over the next few years lenders will follow HSBC and end the 100% nonsense.

That'll help keep prices in check and thereby allow everyone out of the market to SAVE for a deposit.

Deposits are there for a very good reason - to ensure the buyer starts off with a small equity buffer.

I know house prices only ever go up (except when they don't), but the concept of a deposit hasn't just been invented to frustrate people.

It's there for your OWN GOOD.

Paying rent of over £600 a month makes it hard to save up any meaningful deposit. House prices are just rising too fast, for example the house we are looking at was bought for £77K in 2004 and is now on the market for £109K.

meanmachine_2

The cheapest 100% mortgage is currently around 5.85%, set to rise to 6%+ in the next few months.

You'd be paying around 700 quid anyway - plus moving costs - so where's the saving?

I don't get it.

ManAtHome

meanmachine wrote: »

It's there for your OWN GOOD.

It's really there for the banks' good - so they get their cash back if there's a repossesion...

Main disadvantage, as all ready stated is that it limits the range of mortgages available so you may be locked into no-so-good deals. However, given the choice between 100% morgage and a few months cover in savings in case of emergency and a 95% morgage with no savings, I wouldn't necessarily regard the 100% as stupid.

Whether it's the right or wrong time to buy is a whole new thread (or several...)

stuart30

Altern8 wrote: »

What do you think of 100% mortgages and what companies offer them?

Cheers
Craig

I have a 100% mortgage with Northern Rock borrowing £115000 over 30 years,fixed deal over 3 years at just over 6%.

For me and the wife it was the ONLY way to get a mortgage and its the best thing Ive ever done,ok so i maybe paying more interest than someone with a healthy deposit but id rather do that than pour money down the drain renting as we had done previously for the past five years.
So instead of paying out £500 pcm (would be nearer £600 now for same property) in rent and having to pay admin fee"s every 6 months of £100 and not knowing if we would have to keep moving regularly,the mortgage for us is a god send and paying out £701 each month knowing its buying a tiny piece of our house (i know you only pay interest for the first few years but im sure you see what i mean :rotfl: ) is a much nicer feeling than lining some Landlords pockets.;)
When we looked at 100% deals our adviser recommended Northern Rock as they will look at things like income and tend to have more flexible deals than other lenders such as part mortgage and part unsecured loan to make full mortgage amount needed (i think we have 85% mortgage and 15% loan)....although he did advise us just before accepting northern rocks offer that Natwest had just brought out a good deal for first time buyers.

Meanmachine can you explain your reasoning behind your statement...... ""If you can't afford a deposit how the hell can you afford a 25 year mortgage?"".....as Ive said above i couldnt afford a deposit but i can easily offord my morgage repayments each month.:T

wigwam_salesman

meanmachine wrote: »

If you can't afford a deposit how the hell can you afford a 25 year mortgage?

Hopefully, over the next few years lenders will follow HSBC and end the 100% nonsense.

That'll help keep prices in check and thereby allow everyone out of the market to SAVE for a deposit.

Deposits are there for a very good reason - to ensure the buyer starts off with a small equity buffer.

I know house prices only ever go up (except when they don't), but the concept of a deposit hasn't just been invented to frustrate people.

It's there for your OWN GOOD.

What a hideous post.

If you are paying £600 a month in rent you probably can't afford to save £600 a month towards a deposit. Obviously if you can afford the rent then you can afford the actual mortgage unless you plan to keep paying rent out of the kindness of your heart when you mortgage.

I was going to address the other points but it is winding me up too much dealing with such narrow mindedness. Sorry.