HELP -first time buyer

Can anybody help me ??

Me and my partner our looking to buy our first home, but we want a 100 % mortgage, but have no idea where to start looking. does anybody have any advise or know of any good deals for first time buyers???

Replies

  • herbiesjpherbiesjp Forumite
    8.5K Posts
    What is the purchase price you are looking at? What is your joint income? Do you have any other outstanding financial commitments i.e. laons/cards etc?
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Fairdo_2Fairdo_2 Forumite
    442 Posts
    Do you have any money set aside for the purchase costs (Legal, mortgage entry fees, removals, etc)?

    Or do you need to borrow over 100%?

    If so, are you better waiting until you have saved up a bit of money?

    Have you both just decided to get onto the market recently? If not and you still haven't got savings built up for the minimums, why not?

    This is not a flogging session, but it helps to get an idea whether it has been thought through for affordability. If you have been wanting to buy for 2 years, say and you haven't saved enough for costs at least, where has the money been going?

    It could be that earnings are so tight that money cannot be saved on top of living costs, or it could be a discipline thing.

    Those sort of questions would be asked by the Lenders, therefore, it would be worth clarifying your positions.

    It might be none of these and please forgive if it sounds a bit like a rant.

    These questions are not directed entirely at you, but more guidance notes for other viewers if they may be in similar circumstances.

    Please confirm if any of the factors are relevant to you and we could hopefully give you more specific suggestions?
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • meanmachine_2meanmachine_2 Forumite
    2.6K Posts
    Part of the Furniture Combo Breaker
    Forumite
    What fairdo is too polite to say is learn to save first and don't run before you can walk.

    Buying a house is a very expensive business. If you haven't been able to save up AT LEAST 5%, what makes you think you can afford to maintain a property?

    These 100% mortgages are a disgrace. Almost immediately you're plunged into negative equity, and if house prices do correct downwards, you could be houselocked for a decade.

    The lender might even ask you to make up any shortfall!!
  • ArcmedicArcmedic Forumite
    9 Posts
    What fairdo is too polite to say is learn to save first and don't run before you can walk.

    Buying a house is a very expensive business. If you haven't been able to save up AT LEAST 5%, what makes you think you can afford to maintain a property?

    These 100% mortgages are a disgrace. Almost immediately you're plunged into negative equity, and if house prices do correct downwards, you could be houselocked for a decade.

    The lender might even ask you to make up any shortfall!!

    I agree 100% mortgages are a disgrace but for some people it is their only option. I am in the process of taking out a 100% mortgage not because I haven't been able to save a 5% deposit but because if I was to do so I would end up throwing away just as much cash whilst I 'saved', I rent with my fiance at the moment and we are chucking away £700 pcm in rent alone, which incidentally is more than our repayments. We opted in the end to go for a mortgage because it is stupid throwing our money away in dead rent and being students it hard to get our feet on the property ladder anyway. We took a 5 year fixed rate to see us beyond graduation which allows for overpayments and gives us the option to leave after 3 1/2 year and remortgage when were Drs.

    Boland I organised mine via a mortgage consultant with countrywide after popping in for some 'free advice', went for a guarantor mortgage.
  • Fairdo_2Fairdo_2 Forumite
    442 Posts
    Well done Arcmedic.

    I was going to ask how you managed to get a 100% mortgage whilst you were both students, but you answered it in your post at the end.

    If you don't mind, could you please tell me which Lender ended up giving you a Guarantor mortgage at 100% LTV?

    I have not known this was available in the past and would love to know, as the highest Guarantor mortgage I have obtained in the past was requiring at least a 5% deposit.

    If you'd rather not post it in public, please PM me instead. As I say, I do this for a profession and if there is something I don't know I am always keen to learn. (Which can always be done in this trade!!!)
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • NickMidgleyNickMidgley Forumite
    1.2K Posts
    These 100% mortgages are a disgrace. Almost immediately you're plunged into negative equity, and if house prices do correct downwards, you could be houselocked for a decade.

    The lender might even ask you to make up any shortfall!!

    During the last house price slump when negative equity was a real issue, many lenders allowed you to take the negative equity with you if you needed to move. The chances of you being houselocked are very small.

    The only advice I can offer to anyone looking to get a mortgage is to see an IFA (see if you know anyone who can recommend one) and explain your circumstances to them. They should be able to give you the best advice.
  • vale_2vale_2 Forumite
    56 Posts
    Most 100% loans have a hefty higher lending charge which effectively puts you into a negative equity situ straight away. Northern rock offer a "together" product that is quite good for this purpose and does not have this charge.
    ;)
  • ArcmedicArcmedic Forumite
    9 Posts
    Fairdo wrote:
    Well done Arcmedic.

    I was going to ask how you managed to get a 100% mortgage whilst you were both students, but you answered it in your post at the end.

    If you don't mind, could you please tell me which Lender ended up giving you a Guarantor mortgage at 100% LTV?

    In the end we got Northern Rock who have given us a '100%' mortage, which turns out to be a 95% mortgage with an unsecured 5% loan of £5400. Not ideal as origionally Natwest were going to give us the Guarantor Mortgage 100%, however my dad is in the process of moving to a new job even though its more cash, the lender would only go on his old payslips and therefore could not lend us the full amount :(

    Both Northern Rock and Natwest had NO higher lending fee either. Northern Rock are also offering £1000 cash on completion if you stay with them for 3 1/2 years min, although bizarrly had a £250 'arrangment fee'.

    Hope this helps! :)
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