100% mortgage

Asayer82

My husband and I currently rent with our three dependents. We can afford a mortgage of approx £370k but the deposit is what is stopping us from being able to go ahead.
I'm guessing we can't be considered as FTB because he owned our previous home - I've never owned.
I've seen there are some places that offer 95% and even 100% mortgages with a guarantor.
Would this be our only option aside from winning the lottery?!

ashp_2

You must have reasonable incomes to be able to afford 370k. Is it not possible to save 5 or 10%. You could possibly get a 100% mortgage with a guarantor. One thing you will definatly want is a mortgage advisor.

Pixie5740

The closest thing to a 100% LTV mortgage you'll get these days will involve a family member having to either secure savings or their home against your mortgage. You won't get a 100% LTV mortgage like the ones Northern Rock were throwing around in 2007.

How have to calculated that you can afford a mortgage of £370k?

Do you have any savings at all because with a £370k property you'd be looking at £8,500 in SDLT plus solicitors fees plus surveys plus moving costs etc.

getmore4less

An alternative to a guarantor something like Barclays Family Springboard might fit .

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

csgohan4

Money and family shouldn't mix, your parents would be crazy to risk their own secured home against anyone elses, family or not

armchaireconomist

Surely if you're able to secure a 370k mortgage you can afford to save a little each month? 95% LTV is the maximum you'll get, usually at about 3.5-4% interest fixed

armchaireconomist

I'm with csgohan4 on this one, you don't know what the future holds. Don't bring family into it. Worse case you can a horrible situation into an intolerable one.

Asayer82

It's the time frame to do it in that is the concern. We could do it but we would be looking at 4-5 years to save 10% and I can't see us being able to live where we are for that long. We've got a lot of issues with the house itself but on the flip side we have a very good deal in terms of rent and the amount of house we have for it.

I don't think involving family is a good idea really though. I don't foresee any issues with making mortgage repayments but you never really know what is going to happen

Asayer82

This is great. Thank you

getmore4less

csgohan4 wrote: »

Money and family shouldn't mix, your parents would be crazy to risk their own secured home against anyone elses, family or not

That's where the springboard can be a useful alternative.

The risk is loss of access to funds while still getting interest(1.75% variable).

MattTheMoneyGuru

As another thought, you may want to looking in to the Help to Buy - Equity Loan (google it) where the government will lend up to 20% (40% in London) of the purchase price of a new build. You will still need a minimum 5% deposit and there is a 1.75% interest charge on the loan amount after 5 years, but might be worth exploring.