Mortgage affordability / deposit help / ? 100% mortgages

Misha_2

Hello, there,
Wondering whether those in the know could advise in general terms please: myself and wife want to help our daughter to get her 1st house which will be well over daughter's affordability(annual salary ~£40k and properties' value( houses) in the area ~£500k-£600k). If approximate what she could borrow ~£200k - £250k(based on her salary) does it mean the rest( £250k - £350k) is only by us helping with cash deposit( we'll have to remortgage)? 100% mortgages( where we are as a guarantors) are NO go? ( I have to discuss this with broker of course).  Many thanks for your advice. 😊

housebuyer143

Misha_2 said:

Hello, there,
Wondering whether those in the know could advise in general terms please: myself and wife want to help our daughter to get her 1st house which will be well over daughter's affordability(annual salary ~£40k and properties' value( houses) in the area ~£500k-£600k). If approximate what she could borrow ~£200k - £250k(based on her salary) does it mean the rest( £250k - £350k) is only by us helping with cash deposit( we'll have to remortgage)? 100% mortgages( where we are as a guarantors) are NO go? ( I have to discuss this with broker of course).  Many thanks for your advice. 😊

Yes, you need to have cash anything over the max loan. 100% mortgages are not a thing and it wouldn't make a difference in this case as they will still only loan 4-5x her income.

ACG

I dont think you can do 100% LTV mortgages with a guarantor for affordability. 

Barclays do/did something whereby parents can put money into a savings account which sort of acts as a deposit. But I dont think they allowed parents to also step up as a sort of guarantor from the income side as well. 

I think your potential options will be:
Go on as a guarantor subject to age/affordability etc and have a deposit or, 
Gift the deposit (subject to having circa £300k available).

chanz4

maybe look at cheaper property within budget