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50 yr old - whats the chances?

Options
Coming up to 50 and wanting to purchase their first property with NO deposit. Never had a mortgage before and no current debt although went bankrupt 7 years ago-business related. ( friends of ours. )

What's the chances of getting a mortgage to the tune of £125k. Would they have to have it spread over 15 or 20 years because of their age. I mentioned that everything going on at the moment, credit crunch it is highly unlikely you would get a 100 % mortgage.

cheers
:A Tomorrow's just another day - keep smiling

Comments

  • homer_j_3
    homer_j_3 Posts: 3,266 Forumite
    There should be options out there and if they are looking at it as their home for the next 20+ years then the risk of buying should be minimal providing they can maintain affordability.

    I would probably look to go down the vendor gifted deposit of 5% route and then look for a 95% ltv lender which should secure you better rates.
    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.
  • raq
    raq Posts: 1,716 Forumite
    there privately renting at £550.00 per month but really can't see them having a 5 % deposit. What are their chances then??
    :A Tomorrow's just another day - keep smiling
  • maninthestreet
    maninthestreet Posts: 16,127 Forumite
    Part of the Furniture
    what is this person's income? Are they self-employed?
    "You were only supposed to blow the bl**dy doors off!!"
  • homer_j_3
    homer_j_3 Posts: 3,266 Forumite
    gifted deposit means that if the seller would be prepared to take a 5% hit on the asking price then rather than buy it at 95% of original asking price, you buy it at 100% asking price but the seller gifts you the 5% deposit on completion. Its a paper exercise for the solicitors more than anything.
    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.
  • raq
    raq Posts: 1,716 Forumite
    what is this person's income? Are they self-employed?

    income £24k this is for both of them and NO not self-employed
    :A Tomorrow's just another day - keep smiling
  • raq
    raq Posts: 1,716 Forumite
    sure they'll be happy to hear that then. although personally we think they are stretching it what with their income , age and what happened to them 7 years ago.
    :A Tomorrow's just another day - keep smiling
  • 24k total income, and a requested mortgage of 125k, with no deposit. Thats stretching the realms of affordability a little much in these times. At a 6.8% APR rate (for affordability), they are looking at at least 700 per month, just to cover the interest. Probably 950 for a repayment mortgage over 15 years (I havent calculated this).
    I wouldn't recommend this on the figures disclosed.
    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.
  • homer_j_3
    homer_j_3 Posts: 3,266 Forumite
    its feasible though - which is the worrying factor.
    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.
  • raq
    raq Posts: 1,716 Forumite
    homer_j wrote: »
    its feasible though - which is the worrying factor.

    I agree with you guys. Especially as they jump at something and don't realise what they have done until it's too late. think they look at us and say "We do it and we got small kiddies" but try explaining everything else to them, not easy.

    mine is £980.00 repayment over 23 years but we are in the first year for self employed so we knew our % would be slightly higher. One good thing though is that we have £110k equity in the property.
    :A Tomorrow's just another day - keep smiling
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