100% Mortgage

lilfairy

Hi All,

Any Idea who is still offering a 100% Mortgage?

Thanks 4 ur help.

Steph

herbiesjp

Cant remember. But I think The MOrtgage Works might still be offering 100% deals but not much else

beingjdc

Their website claims they still do. A hefty 6.8% interest rate fixed for 5 years. Income multiple 4+1 (how is that different from 5?) or 3.5x joint.

ohmsoft

beingjdc wrote: »

Their website claims they still do. A hefty 6.8% interest rate fixed for 5 years. Income multiple 4+1 (how is that different from 5?) or 3.5x joint.

I think that means joint multiple (4 x highest salary + 1 x lowest) and they will do the highest of that or 3.5 x on whole?

herbiesjp

ohmsoft wrote: »

I think that means joint multiple (4 x highest salary + 1 x lowest) and they will do the highest of that or 3.5 x on whole?

Yep - that's right

beingjdc

ohmsoft wrote: »

I think that means joint multiple (4 x highest salary + 1 x lowest) and they will do the highest of that or 3.5 x on whole?

Oh OK, that makes more sense!

Why would you take out a 100% mortgage in the current climate though, that's what I'm wondering. It would be like renting, but paying for your landlord's capital losses too!

dunstonh

Property values going down (generally) and a 100% mortgage in the current climate (or anytime in last year or two) is a high risk transaction. You seriously need to look at the consequences of the monthly payment rising in coming years (rates are likely to rise a bit when the credit crunch has mostly passed) and property prices going down may leave you unable to remortage and stuck on a high rate.

JoJoArmani

If you are buying a home to live in for the next say 5 to 10 years on 100% mortgage will the risk of house price crash be worth it?

Surely in 5-10 years houses will be worth a bit more than they are now?....

Rick62

No, not in 5 years they won't, not based on previous price reallignments. Maybe possibly in 10.

lilfairy

Im getting a house now, its time I moved out of my parents place, and although they are not kicking us out, they are looking to move in the not so near future, and we have found a house we really love, and so are trying to go for it. It has been reduced from 180,000 to 155,000. We are not looking to sell in the near future as its a 3 bed, so even if we have kids we can stay there.
We have got a small amount of savings, but not enough to cover everything and a deposit too.
I live in Bedford, and I really cant see house prices crashing that much around here, and if they do then im gonna have to sit it out.
Thanks herbiesjp for your info.
Steph

herbiesjp

lilfairy wrote: »

Thanks herbiesjp for your info.
Steph

You are welcome

From one Stef to another Steph!