100% Mortgages

Money_spender

We have found a Aldermore's Family Guarantee 100% Mortgage, the interset are low enough, and everything seems perfect. Is there a catch? Am i missing something?

Thrugelmir

Aldermore like all other lenders is highly regulated. So is above board. The application process will be be very thorough. The other party is providing a guarantee that will be enforced if it needs to be. So not a decision to be taken lightly.

Logan008

hmm I think the missing thing here is a deposit. if your in a position that you would need parents to back the mortgage, then maybe you should be taking out the mortgage? im not being nasty I know how crazy the market can make people. I just think if you can wait until either you have your own deposit or the housing market corrects, probably around when the government pulls Help to Buy, and interest rates rise, you will be better off.


don't forget in this situation not only is your home at risk but also your parents.

Dmitrii

Logan008 wrote: »

hmm I think the missing thing here is a deposit. if your in a position that you would need parents to back the mortgage, then maybe you should be taking out the mortgage? im not being nasty I know how crazy the market can make people. I just think if you can wait until either you have your own deposit or the housing market corrects, probably around when the government pulls Help to Buy, and interest rates rise, you will be better off.


don't forget in this situation not only is your home at risk but also your parents.

Parents? Does the original poster mention parents? Well, on the continent it's possible to get a mortgage with no deposit, e.g. I got one in the Netherlands 10 years ago (with a similar to Help to Buy scheme, called "National Mortgage Guarantee", which backs up small mortgages for first-time buyers).

Dmitrii

Dmitrii wrote: »

Parents? Does the original poster mention parents?

oh, I see, I should have looked at their offer. Well:

"Aldermore residential mortgages are designed to support creditworthy borrowers denied funding by high street lenders."

And then 5.48% rate...

kingstreet

This product involves the applicant's parents putting up their property as security as well as the applicant's.

Other similar products involve the parents placing their savings in an account with the lender which restricts access during the first three years.

A charge is taken over both, so both could be lost if the borrower defaults.