No money but want to buy a property

sebastianj

People do it all the time, how do I do it? Buy a property without any money, can pay mortgage though.



seb

redpete

1- You save up or borrow (but this is not a great idea) enough for a deposit;
2- Find out how much you could afford to pay on a mortgage, what size mortgage this would get you and whether you are likely to get such a mortgage (asking a broker is one way to do this);
3- Find a property and make an offer.

sebastianj

This is the problem, very little as a deposit, the scheme to help buyers (first time), I think it is upto 40% help, does that mean I have to show the 60% deposit? or is there a way round it.
seb

colsten

I think you will find that people who have no money don't buy properties.

All Help To Buy schemes: https://www.helptobuy.gov.uk/

166million

Help to buy you get mortgage for say 80% and a loan for the deposit which would be 20%. So you don't have to have a large lump sum for deposit. Although in the website it says you need 5% deposit
This is only on new build properties through agents registered with the Help to Buy scheme
https://www.helptobuy.gov.uk/equity-loan/equity-loans/

sebastianj

colsten, Most of the Buy to let properties are not paid for, they keep adding properties to their Portfolio without money.

seb

sebastianj

Thanks for the link, very useful.

seb

user1168934

sebastianj wrote: »

colsten, Most of the Buy to let properties are not paid for, they keep adding properties to their Portfolio without money.

seb

They still have to pay deposit, the rest is mortgage. They era of 100% or more mortgages is long gone. It was certainly possible before the credit crunch but not any more I am afraid.

166million

Buy to Let you have to have 40-60% deposit I think

Pincher

I understand that there used to be lots of seminars, where you were taught to buy properties "with NO MONEY down".


Do you have to pay £1,000 course fee before they let you have the chapter on funding?

Dan83

I was in the same position as you 5 years ago, needed to get my own place a.s.a.p but had no money. I had a job and I'm assuming you do aswell?

1st of all you have to get money, so either save up or borrow some.

You need enough for your deposit and fee's.

I couldn't afford to rent, so had no choice but to buy, it can be done, just don't over stretch your self.

There might be 100% mortgages available, might be worth looking into it, then you won't need a deposit.