paulr

.................another property boom. All these people paying daft rents, only because they cant afford a deposit. When the 100% mortgage comes back, rental values will sink like a stone as everyone moves back to ownership (and house prices will rise again).

Opinions on a postcard please.

mamoon2

We won't be seeing 100% mortgages again for a long long time

g7prs

iTrader: (5)

If ever!

A lad i used to work with had a 110% morgage

zip106

https://www.clickngomortgages.co.uk/...gage-deals.asp

And another, but could be risky for a relative!
http://www.thisismoney.co.uk/money/m...-mortgage.html

mamoon2

My mate had a 110% mortgage.... paid his Vauxhall Corsa off with it. He couldn't understand why it was a bad idea to pay his car off with a 25 year loan

2 years later, his house was repossessed.

mamoon2

Seeing as the last blog post on that site was 2009, i'd say they have either gone bust or just not updated the website.

I'm pretty sure there are no 100% products on the market

zip106

Good point - I didn't read the blogs.....

mamoon2

That second one is not a 100% mortgage, its a 75% mortgage with 25% secured on a relatives house.

zip106

But the lender still provides 100% of the purchase price with a 25% guarantor.
Therefore, in essence, it's a 100% mortgage.

PaulC72

Did he lose his car?

paulr

Dont you believe it. They will be back, but maybe renamed and repackaged, but they will return. The demand is there.

paulr

Exactly what i said, tweaked a bit, but a buyer can buy a house with a loan for 100% of the asking price. The 100% mortgage is back........

mamoon2

No because it was not secured against the loan. In essence he could use the extra 10% for whatever he wanted

kingofturds

iTrader: (1)

t16mbo

We won 25k last yr n still not enough for deposit on a house. Needed 37k.
Have a friend who has 100s of houses n get dodge mortgages but not even he can get me a 100%.
do hope one day they do come back as what I pay in rent I cld have a massive house

pslewis

House prices currently have a floor of a 7% yield - these are the FTB houses (which are also the BTL houses!).

In essence, all you do is take the monthly rental for, say, a 2 bedroom house in your area ... when this is 7% of the house price, you have hit the floor.

This floor is still way above what the FTB can afford ... and this floor is raised each time rents are raised .......... renters are effectively pricing themselves out of ever owning a home for themselves, doomed to buy anothers house for them.

mamoon2

My latest is 10% yield

pslewis

Yes ... but 7% is the minimum that it's worth buying for ... and that gives a floor to prices.

mamoon2

I knew what you meant. I just wanted to boast

jap craig

There are a number of 100% morgages but only for first time buyers and you need to have a guarantor to sign the contract for a 5-10 year term (they have to own their own home). and the rates arent bad either. I do agree though the rental market has become a joke! houses a year ago that were going for 800pcm have now gone to 995pcm! A estate agent told me its because the land loards can up the rent due to high demand!

pslewis

I knew what you meant. I just wanted to wind you up

Jamz3k

I hope to have most of my debt wiped out in 2 years time after which I will start to save for a house. It would be really nice for me if 100% mortgages came back in but I'm pretty much settled on the fact that its a privilege to own your own home, one privilege that I let slip through my fingers by being greedy with the ol' buy now pay later frame of mind.

Alg

A guy I work with is just in the process of taking out a mortgage. He was quite happy that they're allowing him 5 x his salary. Yes, we've told him.

w44syf

iTrader: (2)

iv just pait a 25% down payment couldnt get nothing lower then 25% where never goin to see the 100% mortgage

pslewis

The payments may well be less than the alternative rent - he is making a commitment which will pay off in the years to come.

Truth is, if I hadn't bought - and rented instead - I would, today, be paying around £2000 a month to live where I do now. I am paying zero in rent/mortgage.

paulr

This is where there is an opening. Not boasting, but there are people like me (older, no mortgage) getting $hit interest rates. I would happily lend someone (with gurantee's) a deposit. 12k at 5.5% net.

for example, if your house was worth 100k, i lend you 12k, and the deeds show i own 12% of the house. When the loan is paid off, you then own the lot.

PaulJC

iTrader: (1)

Thats almost the same principle of part buy part rent which is offered on loads of new builds, you have to make 'rent' payments on the % not covered by the mortgage

paulr

Something is amiss somewhere. Young people want to borrow money but cant. Old people have money spare, but cant get a decent rate.


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EddScott

It wasn't so much the 100% or 110% mortgages that were the problem. If I was earning £100K and the house I wanted was £100K but I took a mortgage of £110K, I could still afford to pay the mortgage payments.

What was the problem was self certification - or at least the miss-use of self cert.

I know of a very lovely lady who has jsut become self employed and likely to earn about 80K this year. As she's not got full accounts she can't get a mortgage because no more self cert.

I also know a chap who has property worth about £1.2m and he currently earns £1000 a month and is on a financial knife edge! All thanks to the miss use of self cert.

rb5_336

I was in the same boat a mere 2 months ago and still got a decent rate mortgage with only 20% deposit.