My girlfriend and I are renting, and the thought of pouring another £12k into our landlords account and having nothing to show for it is winding me up!
Although I know we can afford the mortgae repayments as they will be less than our current rent, we can't afford deposits, agents fees and stamp duty etc!
We may be forced to get a 100% mortgage, something I really didn't want to do!
Is there any other option for people in our situation?
Alternatively, if we get a 100% mortgage, is there any way that in a year or two, we can re-mortgage our house and if the property's value has increased or we have saved enough money, we can essentially pay a deposit and have a mortgage for 90% of the property's value?
2007-01-01 20:56:03 · 6 answers · asked by mr_sporty_spice 2 in Business & Finance ➔ Renting & Real Estate
Other options include:
Find somewhere cheaper, which takes into account the costs of buying.
Get a better paid job, as suggested by my ex-wife when the bills constantly exceeded our income..
Buy in a stamp duty exempt area, which is what I have done after making the wife into an ex-wife.
As property tends to continue to go up in value, and as you repay the mortgage, you eat into the capital you have borrowed, over time the difference between the current value that can be realised for the property and the amount you owe to the mortgage provider (called equity) will widen, and of course you can use that difference, if you want, but you might be better off leaving the equity to let your 100% mortgage drop to something less over time. For example, I took out a 95% mortgage three years ago, and it is now less than 80%. This has allowed me to take a payment holiday this summer when I was made redundant.
The key thing is to not overcommit yourself. Make sure the repayments can be met comfortably (a good rule of thumb is that your housing costs should not exceed 1/3rd of your nett income), and also consider how you would cope if interest rates notch up a couple of extra points over the coming months or years. You need somewhere to live, but you also want to be eble to enjoy life as well.
Good luck.
2007-01-01 21:16:48 · answer #1 · answered by Anonymous · 2⤊ 0⤋
If property prices remain the same or increase there is no problem with a 100% mortgage as you are buying the property. The risk is if there is a crash you could end up in negative equity (ie you owe more than you are worth). You are right is assuming that in two years you can remortgage and reduce you borrowing in the meantime. There are over 12000 mortgages in the UK you have a lot of choice.
2007-01-03 02:37:55 · answer #2 · answered by dbharrold 2 · 0⤊ 0⤋
the certainty that we live and respiration and in a position to do those varieties of issues. the certainty that we are no longer rocks and a few divine twist of fate made use who we are quite of a few inorganic atom. the certainty we can supply issues properly worth. we are in a position to classify. Its all suited, the sight, the sound, the feel, the emotion, the flavor. Even discomfort. we are in a position to experience that no longer many different issues can. discomfort may well be painful, yet we are in a position to experience it merely as we are in a position to experience chuffed. Its dazzling extremely that out of all of this we are in a position to do those issues. even nonetheless it form of feels to suck now and lower back its nevertheless dazzling. random certainty: in case you shoot a rabbit, it doesnt understand why it feels discomfort, it would not sign up that there is an evidence, it merely is conscious it feels discomfort and as a reaction will run away, whether its demise. Shoot a human (whether they did no longer understand what a gun grew to become into) it may recognize its something released, have some type or awareness of what to do etc. I dont think of this grew to become into proper yet its written now... yet while youre searching for one reason it may surely be pie.
2016-10-06 07:59:10 · answer #3 · answered by ? 4 · 0⤊ 0⤋
It might be worth trying to get your deposit monies from another source, ie bank loan. Or try and find a new build home, they often offer lots of discounts etc for 1st time buyers.
Fairfield are just building near me and they are offering to pay your 5% deposit, and give you £1,000 cash back.
Bear in mind you have to pay for a local authority search (£200+), drainage search (£35+), environmental search (£150+) as well as stamp duty
2007-01-01 20:59:17 · answer #4 · answered by OriginalBubble 6 · 0⤊ 0⤋
best answer!
Construction loan
Come out of the deal w/10% or more (I cant guarantee this) equity and the house you want!
2007-01-01 21:27:22 · answer #5 · answered by camrenalexis2 2 · 0⤊ 0⤋
Interest will eat you up.You sound like your probably young.Try a loan through Uncle Sam.Rates are very low right now.
2007-01-01 21:01:34 · answer #6 · answered by one10soldier 6 · 1⤊ 1⤋