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?

We know the consequences but it was the only way he'd get on the ladder. He is planning on selling it when the fixed rate is up. If he's in negative equity it won't be major sums.

Everyone has different priorities.

he has clear goals which I support. In future years I would not have been able to help. He is more mature than friends who went to uni.

I don't think that's particularly unlikely. We bought our first flat in 1980 with a 100% mortgage and when we moved two and a half years later it had more than doubled in value. In some parts of London property prices were moving incredibly quickly on the 1980s.

Oh wow… where is lending 6/7 times salary? My daughter is currently saving and lives in South East. This could really help her.

My point is that even with a 100% mortgage in a decent market in Scotland anyway... you would still need to save up a substantial amount of actual CASH as the offers over would mean you can only borrow the value of the property. I had a 100% mortgage but I still needed 6k in cash at the time otherwise i wouldn't have been able to buy.

@Kurokurosuke i’m pretty sure someone has reiterated upthread that this was a SO property. Misleading to say it sold for £250k if this is the case

I also have friends who bought a flat when they first moved in together, there was a property crash and their flat then became -£60,000 in negative equity. Three were very unlucky though.

I believe them. It definitely has been possible in the past for houses to do that. Because they were so much cheaper initially than now.

It’s not possible @Kurokurosuke - turns out the poster’s son actually bought with his partner so they got that mortgage on two incomes.

Yes essentially. My point is you still end up needing the cash and the 100% mortgage only over inflates the market. Or that's certainly what happened up here

In Scotland they only lend up to what the valuer says is worth. Anything over that you have to come up with the cash yourself yes. Is that not how it is in England?
So if I see a house I like that's offers over in a good market it might be on at 200k. The valuer might say its worth 200
But the vendor will let it go to offers. The highest bidder gets it but they need to make up the difference if they bid over. Its not unknown for some areas to go 20 or even 30% over the asking.

So? House inflation was massive in some areas in the early 00s.

They are coming back in the US.

DH and I got over 100% mortgage (I think it was 110%) to buy a 1 bedroom flat - it started our journey of doing up properties and selling, it's taken about 17 years but we've gone from that flat of £135,000 to a house worth £1.5 million

I'm grateful to northern rock! We would have struggled to buy even back in 2006/7 without a huge mortgage.

People are paying vast sums in rent why not offer larger mortgages where clearly affordable

I assumed that must be the case. I wouldn’t want my daughter to borrow those kind of multiples anyway!!! I think boomerang children are in my future!

Of course! Every time.