Mortgage with no deposit

istabraq

Just looking to see if anyone has any advice or experience re getting a mortgage with zero deposit.

My circumstances are that I am renting and have no real way of saving for a deposit.

I earn £42k per annum and have no debt. I have no bad financial history having never missed any payments for anything etc.

If i were to buy a flat beside the one i rent the mortgage payments would be roughly the same as the rent i am paying but i'm not sure if getting a mortgage with no deposit is even possible these days.

I may have to rent for ever?

andyf1980

I think it very unlikely that you’ll get a mortgage with no deposit. Even Help To Buy needs 5% deposit plus money for fees etc.

istabraq

Thanks. I feared this was the case. It's pretty frustrating cause i can afford the rent (which is what the payments would be) and face the prospect of paying that for years instead of paying my own mortgage.:(

[Deleted User]

If you don't have any spare cash to save for the deposit, you wouldn't be able to afford to own a home in any case, as you will be responsible for maintenance and other costs that you don't have when you rent.

You need to get into a place where you have disposable income each month and start saving.

andyf1980

Barclays Springboard might be an option if you have a family member who could help. Sure one of the brokers will be along soon to say if there are any other options.

davidmcn

istabraq wrote: »

If i were to buy a flat beside the one i rent the mortgage payments would be roughly the same as the rent i am paying

And you currently have no spare money to save for a deposit? So you wouldn't have anything in your budget to maintain and repair your property, to insure it, or to cope with an increase in interest rates? I don't think you can afford to buy, unless you can go for a lower budget. And yes, you'll need at least 5% deposit these days.

clairebeth

Can I ask what is stopping you from saving? I appreciate the cost of living is high, but you earn really good money, so either, your rent is astronomical, in which case, it may be unrealistic to think a bank would lend you the amount needed to buy a home similar to yours and you need to lower your expectations, or, you need to budget properly and see where you can make savings. All the best!

Robin9

Post a SOA on this Forum and record every single £ you spend for a month.

Earning £42k and perhaps spending £1000 a month on rent, £500 on a car and £500 just living - what are you doing with the rest?

amnblog

Robin9 wrote: »

Post a SOA on this Forum and record every single £ you spend for a month.

Earning £42k and perhaps spending £1000 a month on rent, £500 on a car and £500 just living - what are you doing with the rest?

Ouch

Is it down to the OP to account for themselves here?

Perhaps the thrust is, I don't have the budget to put deposit together or I make other choices rather than putting a deposit together.

Either way the question is one of mortgage options, not, what am I doing wrong?

As stated earlier there are options without deposit, but these will involve the support of family members or friends.

istabraq

amnblog wrote: »

Ouch

Is it down to the OP to account for themselves here?

Perhaps the thrust is, I don't have the budget to put deposit together or I make other choices rather than putting a deposit together.

Either way the question is one of mortgage options, not, what am I doing wrong?

As stated earlier there are options without deposit, but these will involve the support of family members or friends.

Thanks,

Maybe it's my own fault by the way i composed my OP.

I could find a way to save something each month but that would compromise my current lifestyle, and for the avoidance of doubt it is anything but lavish. I am a single parent so choose to spend spare money on stuff for me and my son to do.

I guess the point i was trying to make was if i was paying what i currently do in rent on a mortgage i would be fine (including all the inevitable repairs i will have to make as some have kindly predicted) but what i don't have at the moment is the desire to spend years saving for a deposit at the expense of all of the things i currently do. This period in my son's life is important to me and if i have to rent for a while so be it, i was just trying to tap into the collective wisdom of the forum. I didn't know if any companies perhaps took flawless rent payments into account when deciding on affordability etc.

The springboard option might have some traction too so thanks for the positive replies.

Thrugelmir

istabraq wrote: »

but what i don't have at the moment is the desire to spend years saving for a deposit at the expense of all of the things i currently do.

That's your choice. No one is going to question that. People do go to extraordinary lengths to save the deposit required. The satisfaction of being set up for life is worth every penny.