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?

I hope not, they caused huge problems before. I would also say your children aren't typically nationally because all of mine are saving for deposits currently - one is actively house hunting the other is planning on doing so in early 2026. My old neighbours were mid 20's and bought - outside of hot spots the cost of a mortgage and the cost of rent are not far apart, saving £15000 (buys a typical 2 bed house, so 5% deposit plus costs, things you need to buy) is doable with most working no kids

Which lender gave them 7.5 x their salary

Haven’t most deposits historically been joint ones, though? My mum and dad are in their mid sixties and they lived at home until they married at 25 and 28 (in 1980) as did virtually all of their friends. It really wasn’t common at all, until really very very recently, for young single people to expect to be buying a home on their own, nor as common as it is now to be moving out of their parents’ home in their late teens and having to pay rent affecting their ability to save. Our lifestyles and life stages have changed, along with our expectations.

Strongly suspect the DC was not single buyer...

Why make stuff up and post it?

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

What yr did you buy?

1850 😂

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

That must have been fairly cheap rent, assuming they weren’t earning 30k at 19?

How on earth did they borrow 225k on 30k?

How can they afford the repayments?

They might have if it was the early 2000s and did a Homes under the Hammer type thing.....

The question is are they a property developer rather than a first time buyer who then moved up the ladder....

This

Also it's often not the deposit that's the problem. I know several people who have a deposit but can't get a mortgage because of income requirements.

Best way to address the housing problems in the UK is more social housing.

If it was homes under the hammer, it still wouldn’t triple within two years and doubtful they’d have taken a 100 percent mortgage, it’s nonsense.

like the poster saying about getting a 225k mortgage in 30k. Utter nonsense,

If young people want to buy a home they need to start saving earlier and live at home longer. 100% mortgages drive up the price of properties.

That yes, it’s difficult for young people to save for a deposit and buy a home as a single person - but that it always has been, young single people just previously didn’t expect to.

Perhaps it was a Right to Buy? Depends what year they did it but some were sold very very cheap. Many who did RTB especially in the earlier years did go on to sell later at massively increased prices.

ETA. RTB should end. It contributes to the shortage of affordable housing.

They should never come back.

Whether right or wrong I believe extended mortgage terms will become more normalised eg. 30/35/40 year terms

No one lends 7,5 times salary. So either your numbers are wrong or you’re being misleading and he bought with someone else.

We bought a tiny flat in 2002 with 100% mortgage sold it in 2006 for over double what we paid for it allowing us to buy (mortgaged) a family home we have been in for over 18 years, I think we done it at right time as house prices stopped rocketing after that, this house has increased in value it's nowhere near doubled!

Edit, actuality yes, if they’d lived in their council house for decades, but even then, I doubt it would be buying for a third of the value

He got a mortgage multiple of 7.5? No, he didn’t.

I bought my first flat just over 20 years ago, for £87K, on a 100% mortgage. It sold it 2.5 years later for £97k, which I then put towards my current place. If I hadnt have done it that way I am not sure I would have ever owned a property. They are not necessarily a bad thing, and at the time I bought, I would have stayed if I was in negative equity. Definitely agree tho, no more than 100% mortgages should be allowed.