100% mortgages

carina62

Can anyone advise on anyone that offer 100% mortgages? my daughter and her partner are desperate to get on the property ladder but they have no deposit at the moment. thanks

G_M

Very unlikely (impossible) to find.

Start saving.

DomRavioli

I second this - no chance of 100% in this current climate.

95% is the highest I've seen. Better get saving.

spadoosh

Really please do not encourage them to do this. You should be teaching your child about financial responsibility not encouraging them to get into very risky debt.

I take it you have a property or are encouraging them to get one? I would suggest you provide them the money for the deposit. That way when they end up in negative equity it costs you as well.


ETA here you go 100% mortgage

http://www.barclays.co.uk/mortgages/family-springboard-mortgage

Pixie5740

There are 2 lenders I can think of who do as close to a 100% mortgage as you'll get these days. First is Barclays' Family Springboard mortgage where the borrowers' family have to put at least 10% of the purchase price in a savings account with Barclays and keep it there for 3 years. The second is with Aldemore but again family would have to put up the security rather than the borrowers but in Aldemore it's the other family member's home that would be used as security.

The kind of 100% LTV mortgage being thrown about pre-2008 don't exist any more.

csgohan4

carina62 wrote: »

Can anyone advise on anyone that offer 100% mortgages? my daughter and her partner are desperate to get on the property ladder but they have no deposit at the moment. thanks

A property is earned and respected not given. They need to get their finances in order in order to prove to lenders that they are credit worthy.


Would you lend to someone off the street with no credit history and no assurances they will you the money back?


There is a reason why 100% mortgages have gone, because a lot of people defaulted and led to bad debt and the banking crisis.

carina62

It's a bit of a long story but they hate living where they are at the moment (rented accommodation via housing association/council) as the property is too small (she has a 10 year old son and a baby) and she has 2 dogs. They can't afford private renting as it's so expensive and they would rather put the money towards a deposit so the only way I could help is become a Guarantor on their mortgage or use some of my equity as collateral. I think Barclays sound the best option but not sure how it works fully yet.

csgohan4

carina62 wrote: »

It's a bit of a long story but they hate living where they are at the moment (rented accommodation via housing association/council) as the property is too small (she has a 10 year old son and a baby) and she has 2 dogs. They can't afford private renting as it's so expensive and they would rather put the money towards a deposit so the only way I could help is become a Guarantor on their mortgage or use some of my equity as collateral. I think Barclays sound the best option but not sure how it works fully yet.

Do they have any left over money after rent?


If it is not much, is it wise to own a house with little savings or ability to withstand home emergencies and interest rate increases?

marksoton

carina62 wrote: »

It's a bit of a long story but they hate living where they are at the moment (rented accommodation via housing association/council) as the property is too small (she has a 10 year old son and a baby) and she has 2 dogs. They can't afford private renting as it's so expensive and they would rather put the money towards a deposit so the only way I could help is become a Guarantor on their mortgage or use some of my equity as collateral. I think Barclays sound the best option but not sure how it works fully yet.

They should count themselves lucky that they have secured social housing.

spadoosh

carina62 wrote: »

It's a bit of a long story but they hate living where they are at the moment (rented accommodation via housing association/council) as the property is too small (she has a 10 year old son and a baby) and she has 2 dogs. They can't afford private renting as it's so expensive and they would rather put the money towards a deposit so the only way I could help is become a Guarantor on their mortgage or use some of my equity as collateral. I think Barclays sound the best option but not sure how it works fully yet.

I doubt barclays is the 'best' option. If they cant afford private rent locally i highly doubt they could afford a mortgage, they tend to fall pretty close together. And then theres emergenceies, white goods, buying costs. Thats before we get to the doomed housing market due to brexit.

Id think of different options. Moving areas, moving countries, smaller property, residential caravans tiny home movement etc etc.

Too small is an objective preference. Maybe readjust their priorities or expectations.

evansc1

In reality, if they can't afford private rent, but are serious about getting on the property ladder, they need to take a financial reality check. Two dependents will take a lot out of their affordability, especially with youngest being a baby. Having 2 dogs will be a financial burden too - they may not want to say goodbye to them but sounds like sacrifices (to the pound, not suggesting some dodgy animal sacrifice) need to be made to even allow toying with the idea of buying a reality.

Doesn't sound like they would get offered a mortgage buy any lender anyway from what you say above, even if they had 5% deposit and all the associated fees. If they can't afford the private rent, I'd be amazed if they passed any stress tests that lenders would put on them. ie. If rates went up to 5-7% then that probably wouldn't be far off private rent charges anyway.

Sadly, really doesn't sound like even with your financial support that they are currently in a position to purchase a property. They can take action asap to get themselves on the right path though and I'm sure they would be surprised to see what money starts to be saved up.