Please or to access all these features

Add post

Watch this thread

Save thread

Start a new thread

Flip thread

Hide thread

My feed

Active Unanswered threads

Getting started FAQ's

Unanswered threads Acronyms Talk guidelines

Hide shortcut buttons

Talk

Money matters

Find financial and money-saving discussions including debt and pension chat on our Money forum. If you're looking for ways to make your money to go further, sign up to our Moneysaver emails here.

Flip

Original poster

loan for deposit?

16 replies

ivet83 · 16/02/2006 20:30

we have a 10000 pounds loan and a 5000 credit card to clear.the loan needs to be cleared by 2008.we want to get a mortgage but don't have deposit.you think anyone would give us another loan?husband's salary good

OP posts:

HRHQueenOfQuotes · 16/02/2006 20:32

It's only another 2yrs until the loan will be paid off - why not wait until you've cleared some of the debts before taking on anymore???

If you're really determined you could go for a 100% mortgage....

Flossam · 16/02/2006 20:37

We have much bigger debts than you and have been approved for a 100% mortgage with my bank. Fulfilled special criteria though as I am a graduate. But lots of lenders do 100% now, one EA I met said most mortgages are done that way now.

Remember you will need 1% of the cost of your house for stamp duty if over 120k (150 in regeneration areas). Solicitors and mortgage arrangement fees will probably come in around another thousand, also removal and survey costs (another 1/2k).

Hope I don't sound patronising but we are trying to do this ourselves at the moment and there are a lot of costs so make sure you have the funds available.

flutterbee · 16/02/2006 20:38

Yes you will get a morgage easily, dh and I are in a similar position and we have just secired a good morgage. Go to an independant advisor that searches ALL morgage deals and you will be sure to get the best deal.

HRHQueenOfQuotes · 16/02/2006 20:38

When we got a 100% mortgage for our first house the solicitors costs etc that Flossam mentioned where included in the mortgage we got.

flutterbee · 16/02/2006 20:41

Just to add we have ours with Northern Rock they not only so 100% morgages but if you want to they will roll all your loans and credit cards into the morgae so you just make the one payment on them all, I think it works out at a 130% morgage well worth it if you are struggling, not sure about rates etc but I believe it is fixed for 5 years and with all there deals they pay you £1000 after completion to help with solicitors costs.

Original poster

ivet83 · 16/02/2006 20:45

you know for me 2 years is a long time.i live in a housing assosiation flat with other 2 people,one of them mentally disordered.i have an 8 month old daughter and i really want to get out of here.my husband says that the 100% mortgages are with a lot bigger monthly payments is it?please give me an example of how much u pay if possible.cause i don't see us repaying that loan soon

OP posts:

flutterbee · 16/02/2006 20:46

Well what type of money are you going to want to borrow just for the morgage (think of house prices in your area)

flutterbee · 16/02/2006 20:49

If you would rather e-mail me so no personal details are given up I would be happy to do that. If you want my e-mail address just let me know.

Original poster

ivet83 · 16/02/2006 20:54

yes i would love to.you can give me your e-mail

OP posts:

flutterbee · 16/02/2006 20:55

OK here is flutterbee at hotmail dot com

send away

Original poster

ivet83 · 16/02/2006 21:05

flutterbee u have an e-mail

OP posts:

flutterbee · 16/02/2006 21:25

I've replied to you, its a bit long but hope it helps.

Also forgot to put in the e-mail that maybe you could think about joint ownership with the local housing association if you can't afford to buy (not sure what your DH's salary is so can't say whether you will have probs or not).

Flossam · 16/02/2006 21:29

I don't think that is necessarily the case. It will only be a bigger repayment because you are owing more money. If you brought a more expensive house with a deposit you would probably find they fell in line. Look at some banks ready reckoners to work out how much you can afford.

Original poster

ivet83 · 17/02/2006 17:11

flutterbee you have another e-mail

OP posts:

goldstarlover · 17/02/2006 17:13

bear in mind the mortgage you are offered will depend on how much you can afford,.

so if you have 3 loans to clear you may well not get a very big mortgage because you won't be able to afford repayments

crunchie · 17/02/2006 17:24

100% mortgages do tend to be at the upper end of the rates for mortgages IYKWIM. Basically you get offered the best discounts for 90% mortagages etc.

However I would not get ANOTHER loan to pay the deposit as that loan would be at a FAR higher rate than the mortgage.

What I would do is get a 100% morgage for now, continue to pay off the loans, then in a couple of years, when you have a bit more spare cash as teh loans have been paid off, look at remorgaging, as by then the house pices may have risen enough to get a better deal on a remortgage. OR you could use the loan paymenets to overpay the mortgage. Is you are currently paying £100 a month for the loan, in 2 yrs time start paying that additional £100 towards the mortgage, this way LONG TERM you will pay off your mortgage early.

I tryto repay as much as possible, for instance in Feb/March you don't pay council tax, so I am paying a bit extra those 2 months towards my mortgage.

Flip