100% Mortgages do they still exist?

mitchaa

meanmachine wrote: »

WORST. ADVICE. EVER.

Save AT THE VERY LEAST a 5% deposit and go with a lender like the post office - 3yr fix @ 5.89%.

In the meantime that 150,000 property will have dropped in price by 10 grand.

Seriously, that's the only moneysaving advice you should listen to.

Anyone pushing 100% mortgages in the current climate should be banned from this site for good.

I think you have failed to see what the original question was, It has nothing to do with 95% mortgages and savings:rolleyes:

I never said i reccomended it, i just gave an answer to the question.

Perhaps they dont want advice from any Tom, !!!!!! or Harry on an internet forum site but just purely an answer to their question, have you though about that?

Does the 95% mortgage 3yr fix at 5.89% have an astronomical application fee?

meanmachine_2

mitchaa wrote: »

I think you have failed to see what the original question was, It has nothing to do with 95% mortgages and savings:rolleyes:

I never said i reccomended it, i just gave an answer to the question.

Perhaps they dont want advice from any Tom, !!!!!! or Harry on an internet forum site but just purely an answer to their question, have you though about that?

Does the 95% mortgage 3yr fix at 5.89% have an astronomical application fee?

£599.

There - at least I've bothered to do a little bit of research for these people.

Now would you agree with me that what I'm proposing is infinitely more sensible than taking out the ONLY 100% mortage on the market, which they're unlikely to even be accepted for?

jimcoxell

I have a first start mortage and am very happy with it BUT

I have no car
no mobile phone
no credit cards
no debt
plus Im a tight little git and my wife is pretty similar.

It is a risky risky product if your not 100% in control of your finances. I wouldn't recoemend it to most people.

I have no regrets at all but if you want to buy a property as an investment rather than a home which you will stay in, raise a family in and generally love to bits then don't touch it.

mitchaa

I agree a 100% especially in todays climate is not reccomended due to the falling market and almost certainty of negative equity but if they really want to do it, then its their choice.

It may take forever to save a decent deposit, even at 5%.

As you'll probably know the cost of living is certainly not cheap and they are not on popstar wages.

Best advice would be to wait obviously but some people are just hell bent on getting on the ladder.

Caroline_Anne_2

Interesting points made, and I was just wondering if it did exist still! Thankyou all for taking the time to help out!

Good to know that we could get a 95% mortgage- slightly less money to save up! Its just so difficult but at least putting ourselves on a strict budget is good practice for all the uncertainty- hopefully there will be more dream homes coming up in our area, so i think the best advice is too sit tight and keep saving! And everyone else will be in the same position so houses wont be sold and will drop in price by the time we have saved...property is very much gonna be a log term investment, and hopefully in a few years be a family home!:p

Any other mortgage lenders who do 95% mortgages that you know of that dont have astronomical fees or interest rates?

Tiddler_2

Interestingly Post Office mortgages are provided by.................... yep you guessed it, Bristol & West so may have that same strict criteria previously referred to!!

strongboes

If you cant restrict your outgoings enough to save a deposit then should you really be buying a property in the first place!

Also that 150k house is only going to be worth 100 tops in 2-3 years time so save yourself what i can only imagine must be a sickening feeling and buy nearer the bottom and not nearer the top, which is where we most certainly are now!

mitchaa

strongboes wrote: »

If you cant restrict your outgoings enough to save a deposit then should you really be buying a property in the first place!

Also that 150k house is only going to be worth 100 tops in 2-3 years time so save yourself what i can only imagine must be a sickening feeling and buy nearer the bottom and not nearer the top, which is where we most certainly are now!

A bit optimistic i think

Overpriced properties may fall by a third or so, but i think reasonably priced properties will survive big drops.

But lets not open that can of worms:rotfl:

Wutang_2

I think Mean Machine is actually a nutter...imagine asking for advice and mentioning you have already spoken to a broker who has recommended a First Start deal....it could be carnage.

Ian_Griffiths_Halifax

meanmachine wrote: »

Anyone pushing 100% mortgages in the current climate should be banned from this site for good.

So you think that nobody should have a100% mortgage, even if they never intend to move house in the future and so the equity in it is irrelavant.

I arranged a 100% mortgage recently for a client and this was with Bank of Ireland on a very similar scheme to the Bristol and West one (both are part of the same group). The clients were happy to go for a 100% mortgage because it was the house of their dreams and payments were affordable as they were less than the rent they were paying. They have no intention of moving in the future because they have been waiting for a house in this hamlet for a long time.

An alternative to a 100% mortgage would be to use a lender who accepts the Vendor Deposit Scheme. If you can negotiate for the vendor to pay the 5% deposit for you by accepting eg £95,000 on a £100,000 asking price, if the valuer then confirms the value of £100,000 then there's no problem.

If the house value drops it will increase in the future, but over what period nobody knows.

Anybody taking out any mortgage of any loan to value must always consider what the payments will be when they revert to normal interest rates, and also consider whether or not it would be affordable if rates went up 1 or 2% above the normal interest rate eg 9-9.25%. Some people may have childminders to pay for or have finance for example that may have ended by the time their Fixed Rate Deal comes to an end and so that provides extra funds to ensure the affordability.