Planning for the mortgage future

hels_xix

So the end of the 100% mortgage eh?

Anyone got any sort of idea how the situation is going to be in the next 18 months?
I have got a relatively strict budget which allows me to save £8000 and pay off £4000 of student overdraft 12 months after starting work (Summer). But it requires that I do something I don't want to do - live with my parents!
Well - it is based on bills/room/food for £400 a month at home, it may decrease (but I don't want to rip my parents off, my wage as a graduate will be higher than theirs combined) so I may save a little more.

Thing is, now the 100% is dead, I have no idea if I could get a mortgage with the £8000 cash in those 12 months! What if it needs to be 24 months! I will be on £27k at least by that point I think. What do you think? I'm in Lancs, so houses are still cheapish...

I would not last 2 years at home.

Well, I know I am worrying too soon and I can stick to the plan and if it all gets too much I can move out, but I was in a happy place realising I could have a nice house with my big deposit and now my bubble is burst a little.

luckyfool

It obviously depends on how much of a deposit you will be putting down, and how much the property will be.

95% are still currently available, though less common. All you can really do is save as much as possible and revisit things 6-12 months down the road. £8,000 as a deposit would be enough for a 10% deposit on an £80,000 property, or a 5% deposit on a £160,000 property. Remember to factor in other costs such as legal fees, and stamp duty if you buy a property over the £125,000 threshold.

hels_xix

I was really wondering if anyone would be prepared to guess if the 95% still will be there in 18 months... I should make these things clearer.

(I can't get a house for 80k, that small a mortgage counts as not possible to buy)

luckyfool

Unless the market improves substantially, I think 95% mortgages will probably disappear over the next couple of months. If that does happen then it's really down to whether they reappear by then.

I would put the chances of 95% mortgages being available 18 months from now at no better than 50/50.

hels_xix

There is small hope in 50/50...

Thanks for guessing )