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100% mortgages

(18 Posts)
lulabelle Wed 11-Jul-07 22:02:49

Anyone got one or more than 100%? I have been into one of the high street banks and got offered 95% of the house value but they want deposit and fees upfront, looking at 15,000!! someone has recommended a mortgage advisor who says they can offer up to 120%. Does this mean they are really high rates? I can't see why its so different.

SlightlyMadSpider Wed 11-Jul-07 22:06:26

Yes the rates will be exceedingly high IME. They charge you a premium for a 100% mortgage as the risks are greater for them.

SlightlyMadSpider Wed 11-Jul-07 22:07:16

BUt teh best thing to do is get a quote and see if it fits.

Try not to go for more than 100% as you will be in negative equity before you start.

lulabelle Wed 11-Jul-07 22:08:50

I think the 120% are for re-mortgages thinking about it, the 100% ones don't show rates on the website so will have to contact them tomorrow as too late now...have to wait until kids are in bed!!

MrsBadger Wed 11-Jul-07 22:15:27

(NB better to take out a smaller mortgage and save up to add the conservatory later)

SlightlyMadSpider Wed 11-Jul-07 22:17:00

Years ago you used to be able to do online quotes with (a reputable mortgage broker). You could vary the parameters (e.g. 100%, 95%) and see what you get.

BreeVanDerCampLGJ Wed 11-Jul-07 22:17:57

100% mortgages are a form of madness. IMO

lulabelle Wed 11-Jul-07 22:20:14

Lol at Mrs Badger, seeing the conservatory thread!! It isn't for this house, I was asking as there is another house for sale in the same road as the one we have made the offer on, I just wondered how much value it added, we have one now and tbh I'll be glad to see the back of it, bliimin thing is a nightmare to clean!!

lulabelle Wed 11-Jul-07 22:23:11

we are in a fairly good position, we have a £10k deposit already, only thing is, we started looking to get ideas and a pushy estate agent talked me into a viewing, anyway, we saw it and fell in love with it, only thing stopping me was we have a loan for the car, a friend told me you could put that in with the mortgage so we can move quickly, we are probably better off paying that off with the cash we have? Seeing advisor tomorrow so have to wait and see, just desperate to know!! We have had our offer of £5k below the asking price accepted, if that means anything.

BigGitDad Wed 11-Jul-07 22:25:41

Northern Rock and Birmingham Midshires are two lenders who will lend over 100% usually upto 125%, the interest rate will be higher but should be around 6-7%.

wannaBe Wed 11-Jul-07 22:29:22

I wouldn't take out a 100% mortgage, ever, but especially not at the moment. If interest rates continue to rise and house prices drop, and yes, house prices will drop at some point, then you could find yourself in the position of negative equity which is a very bad place to be.

Don't go there - it's madness.

fannyannie Wed 11-Jul-07 22:35:25

We got a 100% mortgage 5yrs ago when we bought our first house - it was the ONLY way we could get on the housing ladder - raising a deposit was out of the question and rental prices where we were living were ridiculous.

However, I'd 2nd (sort of) what has been said about negative equity - UNLESS you're intending to live there for a substantial period of time in which case I can't really see why negative equity would be a worry. As for interest rates rising - I think you need to bear (bare?) that in mind before taking out any mortgage.

lulabelle Wed 11-Jul-07 22:36:48

ok, I'm getting nervous now, we have waited in a small house for 2 years, really cramped with the DC's, we are renting at the mo. we have watched the house prices carefully but can't afford to sit tight anymore, we are throwing money away on rent and struggling for space whilst watching the prices go up and up. if the mortgage we are looking at is 95%, is that 5% really worth the wait? I don't know what to do?

lulabelle Wed 11-Jul-07 22:38:11

the ones we have looked at are fixed rates, we would be there until the little dc's leave home. we live in a really expensive area and buying is a nightmare, however, this one has come up and we have had our offer of £5k under the asking price accepted.

loolop Wed 11-Jul-07 22:42:39

Northern Rock will normally do the best income multiples (higher than BM sols). Bank of Ireland and Bank of Scotland also do good 100% deals. There are of course risks involved but sometimes that risk is worth taking if you really want to get on the property ladder. I'm a financial advisor btw but am on maternity leave so can't give you any advice on current deals, the company I work for has a website it will have current rates and mortgage calculators for you to have a look at - let me know if you want any more help x

KittenKat Wed 11-Jul-07 22:42:42

on 100% mortgage officially, 18months old but is actually made up of 95% mortgage and 5% unsecured loan. Interest rate was high at 5.96%, but it was the only way I could get on property ladder and could afford the payments. I also got offered more with a 5 year fixed rate. I dont know if companies still offer more for fixed rate. I would absolutely not have taken out more than 100%. I did not want to do this either but needs must. I am glad I did.

Once my fixed rate has finished, I will be in a better financial position to re-negotiate a better interest rate, depending on where the rates are...and if I move house, will be (even now) in a better position to come up with a 5% or more deposit.

Talk to an independent financial advisor...?

loolop Wed 11-Jul-07 22:44:12

ps i would only consider taking above 100% if you have any high interest long term debts you could pay of with the money as can work out financially better each month to do this but you may need to sit tight for some years to gain any equity

lulabelle Wed 11-Jul-07 22:47:37

Thanks for your advice, I wouldn't take more than 100% we just want to move quickly, so want to pay off the other loan, which we could do if we didn't need the deposit. We are seeing advisor tomorrow so will see what they say. Off to bed now, this housebuying lark is knackering!!

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