1st Time Buyer - No (little) Deposit

Alexander1977

Hiya folks


I'm looking for advice (obviously).

I'm late to the property thing as I've never wanted to commit to anything as substantial as a mortgage before. I'm 41 now and I rent my mothers house (she doesn't live there and her mortgage is paid) but I have spent a few quid on modernising it. I guess I'm looking for advice on a couple of points:
- Are 100% mortgages available to first time buyers
- The house is worth ~80k from a previous estimate a couple of years ago
- It requires a number of modifications including new doors and windows, kitchen and rendering.
- Can you get the cost of the modifications included within a 100% mortgage.


Look forward to hearing from you guys.


Thanks


Alex

kinger101

You need at least a 5% deposit for a mortgage (preferably 10%), and then a the cost of any legal fees, and surveys on top. Luckily, there's no stamp duty on £80K, but we're talking roughly another £2K.

You can't add the cost of renovations to the mortgage.

Alexander1977

Thanks for taking the time to respond... Wow, if it's that cut and dried, how on earth are people supposed to get on the property ladder?

There is not a hope in hell I can save 8k whilst continuing to rent as well as live at the same time. Then no chance of renovating the place further even if I did manage to save 8k...


Are there other options?


Thanks

Silvertabby

If your mother is willing to sell the property to you, would she be willing to waive (or reduce) your rent until you have saved up the deposit?

Can you raise the £8K by any other means (which don't involve borrowing). ie, sell things you don't need any more, get a part time job.

Finally, how do the mortgage payments compare with your rent? If you are unable to save while paying £X rent, how would you cope with higher mortgage payments - especially when interest rates go up?

babyblade41

Alexander1977 wrote: »

Thanks for taking the time to respond... Wow, if it's that cut and dried, how on earth are people supposed to get on the property ladder?

There is not a hope in hell I can save 8k whilst continuing to rent as well as live at the same time. Then no chance of renovating the place further even if I did manage to save 8k...


Are there other options?


Thanks

I'd say that you are limited, maybe do a budget to see exactly what your outgoings are along with incomings as you maybe spending far too much on unnecessary things

Sadly if you want something badly then sacrifices are made to get them.

I bought my first house at 18 and paid off my mortgage at 35 in the south east but never had a holiday, bought clothes from charity shops , no takeaways and produced 2 children and a wedding.

It can be done but working became the focus and every spare minute was about earning and looking long term .. sleep was a luxury .

I still don't go on holiday due to my chosen lifestyle;e and only since I have moved in the last month do we get a small takeaway on a Saturday

My van serves it's purpose so no posh vehicle .. and only use the credit card for large ticket items and pay it off when the bill comes in

davidmcn

Not that I'm suggesting you're entitled to sponge off your mother, but is she really not willing to accept less than full market price (especially if some of the value comes from your own improvements), or at least drop the rent so you can save a deposit?

Cakeguts

Alexander1977 wrote: »

Thanks for taking the time to respond... Wow, if it's that cut and dried, how on earth are people supposed to get on the property ladder?

There is not a hope in hell I can save 8k whilst continuing to rent as well as live at the same time. Then no chance of renovating the place further even if I did manage to save 8k...


Are there other options?


Thanks

Your options are.


1 Earn more money.


2 Spend less money and put more into savings.



Non essential spending includes. Cars on finance, holidays, expensive phone contracts and takeaways and meals out.



What people do is they make an effort to save as much money as they can.

Alexander1977

That is correct sir...

Not sure 'get a better paid job' is a suitable answer somehow. Otherwise we'd all be working in better paid jobs consistently...



Rough estimates are that a mortgage would cost less than rent albeit certain additional costs would then arise making it roughly the same ~£600/m outgoings.

anselld

Alexander1977 wrote: »

Are there other options?

Ask your Mother to spend some of her rental income on maintaining her property.

Perhaps if you mention it would be tax deductible....

kinger101

Alexander1977 wrote: »

That is correct sir...

Not sure 'get a better paid job' is a suitable answer somehow. Otherwise we'd all be working in better paid jobs consistently...



Rough estimates are that a mortgage would cost less than rent albeit certain additional costs would then arise making it roughly the same ~£600/m outgoings.

Getting a better job is a good answer. We don't know what you currently do, but asking your current employer what you'd need to do to get the next level might be a start.

A second job might be worth considering to save for a deposit.

A lender would also want to know you could still afford repayments if the interest rate rose 3-4%.

Renting somewhere cheaper (which you don't have to fix up) might also help you save. £600 pcm on an £80K property doesn't quite sound like open market value. I might be wrong, but it sounds like she's getting the better deal.

newbietech

You will struggle to find 100% mortgages as they don't really exist. Any lender that acts like they offer a 100% mortgage really just offers something close such as a 90% LTV but certainly not 100%,. They do this through unusual products such as the barlcyas family springboard mortgage or lloyds bank lend a hand which are essentially offset mortgages /guarantor mortgages.

You can see a list of all first time buyer government schemes by googling or if you need a little hand. use Huuti