FletchCossie

iTrader: (4)

After the garage thread its got me thinking. Whats the current options to purchase houses with no deposit?

I understand having a deposit would be perfect, but I don't have one, so its not an option I would want a house upto £300k if poss (Some round my area with 2/3 beds, garage, etc. The beds is not important, mainly need a bigger garage, but £300k is the average price at present)

We can afford £1000 per month, which yet again is not ideal, but I want realistic figures to our budget, not getting ourselves in debt we cannot afford. The cheaper the better incase one of us has a turn for the worse job wise...

Any help would be appreciated from people in the know and yes I know my low monthly payment and no deposit will be no help and very possibly mean a big no-go, but I want options...

Chip

iTrader: (3)

Most lenders dont want to go past about 4 times salary. So you'd need to be on 75K a year for 300K.

Zero deposit is really hard to get at the moment, and likely to see you on a crap rate if you do find one.


For example, to see how bad things are, look at northern rock:

http://www.northernrock.co.uk/mortga...s/residential/


15% minimum deposit on their most leniant product.


They were doing 105% mortgages a couple of years ago!


Realistically, with no deposit you are fucked at the moment.



Interest only to get the mortgage down to a grand a month you would be needing 4%, and that just isnt going to happen at the moment really.

Even if you did find 4%, bear in mind that if the base rates go up, and you are on 3.5% above baserate, and it goes back to 6% like it was before, you'd be paying well over 2K a month at that point.

And thats interest only, so not paying ANY of the capital off.



What you want, just isnt realistic IMHO

Psycho Warren

iTrader: (5)

erm no offence mate but 100% mortgages died back in early 2008, I know this as i was one of the last to get a 100% deal which luckily they honoured the 6 months meaning i got a 100% mortgage in july 2008!!!

I dont think they will even do the part buy/housing association deals where you rent half the house without a deposit.

FletchCossie

iTrader: (4)

Cheers Chip, thats what I thought.

So what other options are there? Government help? Tax benefits? Pay half, landlord or government pays half? Anything that could help us secure a good home (Don't see the point renting at £1000 per month to pay some else's mortgage and line their pockets).

(And before anyone says getting pregnant, its not an option as we don't scrounge and want a £500k house for free). We will accept help, but Im not living off the Government!

lurch1977

iTrader: (1)

90% mortgages only at the minute, some may do 95% but the deal will not be good. To get a good mortgage you need a 20% deposit. And £1000 per month on repayment which is the only option at the minute is around £150k

lurch1977

iTrader: (1)

Government help is for reserved occupations Nurses teachers police and the like

FletchCossie

iTrader: (4)

Warren, I can get some cash together, but I would like suggestions without spending anything at all! Then my situation can only get better

We should of brought a few years ago, but we couldn't even get a flat for under £220,000 which is pathetic. Now there's houses for that price! We both have good credit, which will obviously work in our favour, but I don't wanna blow £10-£30k on a house deposit and leave myself royally screwed for years...

FletchCossie

iTrader: (4)

What exact jobs are included do you know?

FletchCossie

iTrader: (4)

Thanks for the input, realistic figures are good

lurch1977

iTrader: (1)

here you go

http://www.direct.gov.uk/en/HomeAndC...mes/DG_4001345

Chip

iTrader: (3)

Best advice anyone can give you at the moment is live with your mum and save your bollocks off until mortgages go back to 90-95% loan to value, which they will probably do the next time we are in a rising market again.

Psycho Warren

iTrader: (5)

It also doesnt help that you live in Surrey where the houses are already massively overpriced. Living at home is cheapest way to do it as Chip says.

Problem with grants, loans etc is most mortgage companys will wonder where the deposit comes from and having a £20k loan on your CR and a £20k deposit is too obvious

I was going to take the navys deposit loan scheme but it made no difference to mortgage because the banks know your getting the deposit in a loan.

You say blowing £30k on a deposit would leave you screwed for years, true maybe but a house is a long term investment and you have to look in those terms not the short term.

Mr S1

iTrader: (2)

As a rule, alot of lenders now require a 25% deposit.

No deposit mortgages don't exist any more (quite rightly as well) so if you've got nothing to put down you're staying at home with m&d mate !

DaveZS

Most lenders have moved on to 15% minimum deposits. There are a few 5-10% deposit mortgages around, but they will require someone to sign in with you. Designed for young first time buyers, you get your parents to counter sign it.

The other thing is rates are pretty shit compared to the base rate for new mortgages. I was lucky, I signed a deal with Britannia in Nov for the house I bought a few weeks ago. 10% deposit, 4.49% on their SVR on a 135k mortgage. You can't even get that rate with them if you have a 40% deposit now!

Try moneysupermarket.com, you can pop in a few details and it will give you some ideas.

Rab

100% mortgages are no more mate. The BEST mortgage you'll get at the moment is an 85%... And you need to be shiney clean credit wise to get one.

Someone mention shared equity, but thats also totally useless as most lenders only give 75% on a shared equity property..... Also, a 300k mortgage is not going to be as easy to get as it used to be, as now 3x salary is the rule of thumb, meaning 100k a year for a 300k mortgage. But don't worry, cos that 300k home will be worth 150k in 2 years cos no fucker will be able to get a mortgage for it now