100-125% FTB mortgage

jon32

Hello,

can anyone point me in the right direction to find comparison of available FTB mortgages 100-125% ?

I had a look around but apart from the fact that there is mention of only a dozen or so being available, I did not find any specifics.

Many thanks !

Jon

dunstonh

No offence but your post shows everything that has gone wrong with buying a house.

You have no deposit. Indeed, are looking to borrow above the property price. I may only be in my 30s but I remember the days when lending decisions were made on merit and not computer. A case like this would be thrown out because you have made no effort to save money and entering into a risk based borrowing with no savings is just asking for trouble.

With the Govt saying that they want to a see a return to deposits being required, I think it cannot come quick enough. High risk borrowing like this needs to be brought to an end.

As I said, no offence to you. Its just your post was a good example of the sort of high risk borrowing that is under the spot light at this time. I am sure one of the mortgage advisers will be along at some point to tell you who to look at it.

Dan_Collins_2

dunstonh wrote: »

No offence but your post shows everything that has gone wrong with buying a house.

You have no deposit. Indeed, are looking to borrow above the property price. I may only be in my 30s but I remember the days when lending decisions were made on merit and not computer. A case like this would be thrown out because you have made no effort to save money and entering into a risk based borrowing with no savings is just asking for trouble.

With the Govt saying that they want to a see a return to deposits being required, I think it cannot come quick enough. High risk borrowing like this needs to be brought to an end.

As I said, no offence to you. Its just your post was a good example of the sort of high risk borrowing that is under the spot light at this time. I am sure one of the mortgage advisers will be along at some point to tell you who to look at it.

I agree, to a point! If you buy in the correct area and look to reduce your borrow with over payments you can be in the black fairly soon. But I take your point, it is to easy to get this sort of loan. BM had it right by making sure the client had 5% deposit, but they dropped it because they lost business.

tomjeffery

hi,

i have one of these types of mortgages with northern rock. i borrowed £88k for a property that was £77k. i had no deposits and debts, but a reasonable salary.

after 2.5 years i have now got a property that is equal to the loan in value (therefore eradicating the debt).

if i had tried to save for a year for a deposit (at £200/month) i would have £2400 in a year but would have spent a further £4800 on rent (£400/month) which could have gone towards a mortgage and paying off my house rather than someone elses.

i don't see the problem as long as you can afford the payments, it makes financial sense for the individual.

dmg24

tomjeffery wrote: »

hi,

i have one of these types of mortgages with northern rock. i borrowed £88k for a property that was £77k. i had no deposits and debts, but a reasonable salary.

after 2.5 years i have now got a property that is equal to the loan in value (therefore eradicating the debt).

if i had tried to save for a year for a deposit (at £200/month) i would have £2400 in a year but would have spent a further £4800 on rent (£400/month) which could have gone towards a mortgage and paying off my house rather than someone elses.

i don't see the problem as long as you can afford the payments, it makes financial sense for the individual.

Would you still be saying this if your property had fallen in value by £11K?

tomjeffery

well in a word, no.

but property will come right in the end.

i just think that the sooner you get on the ladder the better (as long as prices are not falling) but this doesn't happen often. also when paying rent and trying to save a deposit, it is often better to buy and save on the rent that you would be paying in the meantime.

Dan_Collins_2

dmg24 wrote: »

Would you still be saying this if your property had fallen in value by £11K?

Nothing like positive thinking! U can 5% in and end up in negative equity! New build flats have dropped, thats a risk when buy that you cant 100% battle!

dmg24

tomjeffery wrote: »

well in a word, no.

but property will come right in the end.

i just think that the sooner you get on the ladder the better (as long as prices are not falling) but this doesn't happen often. also when paying rent and trying to save a deposit, it is often better to buy and save on the rent that you would be paying in the meantime.

But in the meantime you could fall into a position where you need to sell or the property is to be repossessed, and you have negative equity. This can even apply to those who 'can afford the payments'.

I am pleased that your situation is a positive one, but it is naive to suggest that this would be the same for everyone.

dmg24

Dan_Collins wrote: »

Nothing like positive thinking! U can 5% in and end up in negative equity! New build flats have dropped, thats a risk when buy that you cant 100% battle!

Exactly. I don't think my comment was negative, but rather realistic?

Dan_Collins_2

dmg24 wrote: »

Exactly. I don't think my comment was negative, but rather realistic?

I know I was being Sarcastic!

I agree it is a risk, a deposit can help against the risks but in some cases it does not always help!

Dithering_Dad

When I bought my first house, it cost 40k and I paid a 2k deposit which I saved up over a few months from my meagre salary. Back in those days they would only lend you 3x your salary and you had to have at least a 5% deposit, but that was fine because house prices were reasonable.

I don't think it's fair for those of us who got onto the property ladder early to point at people and say "you should be like me, I saved a deposit and only borrowed a reasonable amount" because, hand on heart, can any of us say that we could now afford to buy our original FTB property?

My FTB, for instance (I just checked on rightmove), is now going for £200k so a 5% deposit would be £10,000. However, as I only earned 16k back then I would only be able to get a mortgage of £48,000. This means that as well as a 10k deposit, I would also have to save up £142k to buy the house!!

Just looking over the figures now, at 3x my salary and £10k deposit, I'd have to be earning £63k to be able to buy my FTB!!

Let's try to remember just how lucky some of us are, people!