Practical advice for two renters wanting a mortgage

Discharged

Hi, me and my partner are both wanting to purchase a property together. Through circumstances we've both ended up in rented accommodation in the last 5 years due to our previous relationship break ups.

She's recently become self employed and has little income but i'm employed and have a £45k a year salary plus commission.

We have no deposit saved as we both have businesses and have spent savings starting them up.

What we pay in rent between us both would get us a huge mortgage but we have no deposit. We are looking to reduce our outgoings by moving in together and starting to save, but we're probably 18 months away from any real sizeable deposit.

Does anyone have any ideas, is there 100% mortgages available etc??

regards

Michael

Malmo

There is a very limited pool of lenders that offer 100% LTV, but these products usually:
a) require a guarantor (like a close relative) whose own property is used as collateral OR
b) require a relative who can deposit a % lump sum into an account held with the lender for a fixed term, after which it is returned if the mortgagee's payments are made on time

My advice is to save as much as possible and assess your options closer to the time. The deposit is only one part of the total cost of purchasing. The other costs are also significant, such as the Stamp Duty Land Tax, legal costs, lender's and surveyor's fees, broker fees etc...it all adds up.

Lemonsqueezer78

You're better off speaking to a broker, giving them the full set of information including your salary, circumstances, what you are looking to try and borrow etc. They will be able to check affordability, borrowing limits and mortgage terms.

But you will need some kind of deposit, so I would start saving now if I were you. At 5%, some products may open up to you, but (not surprisingly) the rates will be higher. Ideally you would have 10% at least to improve the rates - and your chances of being approved.

If you have gone bankrupt, even if discharged and it's dropped off your credit file, you'd still be advised to go through a broker as there may be lenders out their that specifically ask in their applications if you have ever been declared bankrupt, which you would have to answer "yes" to, and that may mean it is harder to get a loan with a very high LTV. An experienced Broker may be able to help you circumnavigate that issue, if you think you are only going to have a small deposit.