Do you ever think 100% mortgages will come back?

[peebles32]

Talking to my grown up children and the thought of owning a house does not cross their mind.
They just presume it won't be a possibility.
Not in a position to save as paying extortionate rent in an expensive city.

Do you even think 100% mortgages will come back?

100% mortgages in my opinion should never come back.
All these high LTV mortgages do is enable people to borrow more money and increase their debt.
Instead of these schemes and incentives offered to perpetuate this cycle, the government really need to address the root cause - house prices rising way out of proportion to incomes.

Well you can still get them with a guarantor

My 25yr old DC purchased a house last year. They saved for the deposit whilst renting since they were 19.

South East. Average wage.

It is possible if you're determined.

only if they come with very stringent affordability checks and fall back measures (insurance).

I thought I read that they were coming back?

I don’t think they’re a good idea as it’s just propping up the artificially inflated property market.

As a pp said, the root cause needs to be looked at of property value against salaries.

https://www.mortgagestrategy.co.uk/news/skiptons-100-mortgage-product-attracts-62m-in-applications/

They’re a double edged sword: yes, it might make it easier to buy initially but any downward shift in the market and owners are stuck with something they can’t afford to sell and up shit creek if they desperately need to.

I think your DC’s aspirations need some boosting if they assume they’ll never be able to save a deposit for a home anywhere. Sure, they might not be able to live exactly where they might want to in the early stages of their adulthood, or buy a family home as their first home; but with realistic expectations and career ambitions it’s perfectly doable - yes, even in London.

I bought a house on a 100% mortgage. I sold it 2 years later for triple what I paid

My son bought shared ownership as a stepping stone. Will buy outside of shared ownership when he can. It's not easy but he's on a 'normal' wage and we're South West.

You sound like Kirsty Allsop and her "stop buying avocadoes" nonsense. I'm a middle aged, single teacher with a child and I rent. I defy anyone to stretch my income to cover rent, bills, life, car, clothes etc and then be able to save for a deposit. Please do not suggest that I haven't managed to get a mortgage because I'm lazy.

@fruitgummy purchased for £250k aged 24, saved £25k since renting aged 19. Earns £30k pa.

Stupidly long mortgage term though!

Hmm. When we could get 100% mortgage in Scotland everything went to offers over so you ended up paying 10 or even 20% over value... in essence a deposit anyway.

Why do they? A 100% mortgage instead of renting meals financial sense. Paying rent and saving a deposit is nigh on impossible these days.

They're already back from Skipton NS, so they have obviously assessed them as a sensible risk.

What should not come back is 125% mortgages.

My niece bought a shared ownership in her late 20s. Met her husband. His place was bigger. Tried to sell her SO. No one wants it. Not allowed to rent it out. Absolute millstone round their necks.