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?

Similar figures to me. I bought with a 100% mortgage in early 2002 and sold for just over twice what I'd paid for it in 2004.

Clearly @OldTinHat’s DS bought with his partner!

I don't think they should come back, we bought with a 10% deposit due to bad credit history but could have bought with 5%. The estate the property was on was not maintained by the management company and it became an undesirable place to live. We sold it for a small loss but we were grateful we had the extra equity to cover it.

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!

lending tightened up after the 08 crash

@fruitgummy - advanced search solves the puzzle. He indeed did not get a 7.5x multiple on his mortgage, he bought with his partner 😉

Good for your daughter.

Many people are not able to live at home and save £££ for a deposit.

We pay over the odds on rent every month meaning we have very little to save. If we were able to get a 100% mortgage and still pay the same, at least we'd have something to show for our money.

It's not as easy as you seem to make out. Just because your daughter did, doesn't mean everyone can!

There have definitely been periods over the past twenty years when you could have seen your home value triple in two years. You’d have been lucky to hit one but they’ve happened.

It’s totally irrelevant to the current housing market though.

It is still possible to buy for younger people but definitely not easy. My daughter and son in law purchased in Surrey 2 years ago without inheritance or help after saving like crazy for a few years whilst renting. I think their flat was 425 which is eye watering at twice the cost of my old house at today's prices but I am not near London.

@StMarieforme I would be careful with shared ownership- it can work very well but not as a short term 'thing' and very much depends on 'where' - some developments are way way better than others. I sold a 1 bed one (a big one) many years ago and had 4 people after it within 5 days- desirable London area - 50% and made a profit.

That may be highly area dependent. Middle-aged single teacher with 2 kids here and I have managed to rent and save up for a deposit and had no issue getting a mortgage on my income.

I think more flexibility with mortgages is needed in general, though, and if that includes 100% mortgages in certain circumstances then so be it. But we're heading more down the path of generational mortgages now rather than increasing LTV. THAT will be a paperwork headache in decades to come.

100% mortgages would be a terrible idea in an already inflated market.

Anyone who thinks otherwise is too young to remember the 80's or made a lot of money in the 80's buying up repossessed properties for cash or the early 00's in the boom.

People under 40 have lived an adult lifetime with cheap credit which is not making a return any time soon (I say that as someone on a 1.29% mortgage interest rate for another 2 years and dreading the jump).

Okay I'm not that poster, but my DS - police constable salary. About 26k. Saved 40k in four years, while renting a discraceful shared room in a shared house in Croydon. No car. We matched his deposit giving him 8Ok, but he will pay us back. Bought a two bed flat in Basildon for 220,000 two years ago. Now has a lodger to give him a bit of extra cash.

They shouldn't come back, because they shouldn't be needed!
Address the root cause of housing affordability and people on 'normal' salaries wouldn't need to take on mammoth mortgages, 100% LTV, 40-year terms etc.

But you matched his savings! So he didn’t save enough.

I bought with a 100% mortgage in 2000, we paid double what the previous owners had 18months before - they had done some work to it, but then we sold it for double again just 2 years later so it was possible to make the money the previous poster said, depending on where you bought- we had to move out of London to afford to buy. Without that original mortgage we would never have been able to get on the ladder, we are still in our 2nd house almost 20 years later

I think the problem is when you are single it is not as easy!

Bought my first house in 2003 with a dare I say it mortgage of over 100% live in the north so prices are less. Paid £25500 for the house but got a mortgage for £28000 had central heating installed and bought some furniture with the extra 2.5 grand. At the time I could have borrowed up to £55000 but didn’t want to go to my limit. Sold it just over 4 years later for £75000 leaving me a good deposit for my next home

I did. Bought for 27k sold for 90

Im not i bought 2004 sold 2006. Dont believe me, house price went mad, because of 100% mortgages. Then crashed in 2008. To be honest I know a few who did the same🤷‍♀️

You can find sold prices on Rightmove and do a screenshot of the sales prices to prove the doubters wrong (leaving the address out of the image, obvs).

I believe you.

The fact is that EVERYTHING is so much more expensive now.

Food, electric, gas, petrol, insurance, council tax to name just a few mandatory needs.

None of us who bought even 10 years ago, let alone 20+ can compare our situation to today's.

With a few notable exceptions, Young people and those who not on the property ladder have a much harder time now.

DD 27 in the process of buying a flat in London on her own. 75% LTV, and massive mortgage. It's scary, but can be done. She has been saving madly while renting, using a LISA, and had savings from childhood.

They got a loan for ten times their salary??

There have definitely been periods over the past twenty years when you could have seen your home value triple in two years. You’d have been lucky to hit one but they’ve happened.

It’s totally irrelevant to the current housing market though.

Agree, I know people who bought flats 4 ish yrs ago & sold for what they paid. The market is completely different now, particularly in London.

I'm in Ireland so I know different market but from what I hear things are similarly difficult.

I don' think it would be the worst thing. If strong 'affordability' criteria are met. When I look at rent in Dublin these days, €3k for a standard 2 bed when you can get a mortgage with lower repayments that you can clearly afford. But if you are on an average salary, add a child or two, the sheer cost of everything and saving that 10% deposit is a nightmare