Pele_Is_God Posted February 13, 2011 Share Posted February 13, 2011 I am a first-time buyer, saw a flat I like at a fixed price of ?90,000. I have a 10% deposit ready, the most I can borrow on my salary is ?65,000 from Halifax so still a 15,000 discrepency. Is there any places offering 100% mortgages. Cheers for any advice! Link to comment Share on other sites More sharing options...
Carl Weathers Posted February 13, 2011 Share Posted February 13, 2011 How much did the big banks normally let you borrow? 3x your salary? I'm currently saving up a decent sized deposit with the aim of buying in the next 12 months. Link to comment Share on other sites More sharing options...
The Merse Posted February 13, 2011 Share Posted February 13, 2011 Afraid there isn't. There are some very good shared equity schemes on the go though. Look up the LIFT scheme from Link Housing, it's a great way to get your foot on the ladder and has been created for people exactly like you. The scheme is limited to people earning less than 22k. They will pay a percentage between 10-40% of the purchase price. And with this you only need to put down a 5% deposit also. It's a great deal. You can buy-out their stake in the future if you wish too. If you ever sell the property they will be entitled to their stake back and a % of the profit. So if you bought for ?100,000 and they gave you 30% of purchase price... And then you sell for ?110,000 a few years down the line, they will be entitled to their ?30k back, and then 30% of the ?10,000 profit. Seriously look into it, if you need any help I can point you in the right direction for good advice. Link to comment Share on other sites More sharing options...
Pele_Is_God Posted February 13, 2011 Author Share Posted February 13, 2011 Well the Halifax is 4x salary. My salary is between 15 and 16 per annum. Link to comment Share on other sites More sharing options...
Carl Weathers Posted February 13, 2011 Share Posted February 13, 2011 Well the Halifax is 4x salary. My salary is between 15 and 16 per annum. Cheers. Link to comment Share on other sites More sharing options...
Pele_Is_God Posted February 13, 2011 Author Share Posted February 13, 2011 Shared equity properties are only available in Niddrie, i've looked into it. Link to comment Share on other sites More sharing options...
The Merse Posted February 13, 2011 Share Posted February 13, 2011 How much did the big banks normally let you borrow? 3x your salary? I'm currently saving up a decent sized deposit with the aim of buying in the next 12 months. Between 3 and 4 times is realistic. Probably closer to 3 while the market is like this. Link to comment Share on other sites More sharing options...
The Merse Posted February 13, 2011 Share Posted February 13, 2011 Shared equity properties are only available in Niddrie, i've looked into it. That's not true. The LIFT scheme is open market so you can buy any property you like. There is a waiting list but it well worth looking into. Link to comment Share on other sites More sharing options...
portobellojambo1 Posted February 13, 2011 Share Posted February 13, 2011 Shared equity properties are only available in Niddrie, i've looked into it. Not at all, there are shared equity properties available in a number of areas of Edinburgh. Link to comment Share on other sites More sharing options...
Carl Weathers Posted February 13, 2011 Share Posted February 13, 2011 A mate just bought a shared equity property at the Barrett new builds in Granton. It's got a gym! Link to comment Share on other sites More sharing options...
Lochend Brazil Posted February 13, 2011 Share Posted February 13, 2011 Well the Halifax is 4x salary. My salary is between 15 and 16 per annum. The lift project is a government shared equity, i am sure it is tied into link housing now. RBS are currently doing the best overall rates. LB Link to comment Share on other sites More sharing options...
The Old Tolbooth Posted February 13, 2011 Share Posted February 13, 2011 I am a first-time buyer, saw a flat I like at a fixed price of ?90,000. I have a 10% deposit ready, the most I can borrow on my salary is ?65,000 from Halifax so still a 15,000 discrepency. Is there any places offering 100% mortgages. Cheers for any advice! You have a PM mate Link to comment Share on other sites More sharing options...
Carl Weathers Posted February 13, 2011 Share Posted February 13, 2011 The OP may fin this mortgage guide useful: http://www.moneysavingexpert.com/mortgages/mortgage-guide#what I've ordered one too as I really don't have a clue. Link to comment Share on other sites More sharing options...
The Old Tolbooth Posted February 13, 2011 Share Posted February 13, 2011 The OP may fin this mortgage guide useful: http://www.moneysavingexpert.com/mortgages/mortgage-guide#what I've ordered one too as I really don't have a clue. I'm liking Chapter 5 & 6 on that If you're ever stuck mate don't be scared to ask, even Everton fans get good advice from me Link to comment Share on other sites More sharing options...
Carl Weathers Posted February 13, 2011 Share Posted February 13, 2011 I'm liking Chapter 5 & 6 on that If you're ever stuck mate don't be scared to ask, even Everton fans get good advice from me Cheers John. I'll have a read of that guide first and let you know if I'm stuck. I'm probably 6months away from a reasonable deposit. I could do it quicker but like to live a bit! Who supports Everton? Out them. Link to comment Share on other sites More sharing options...
The Old Tolbooth Posted February 13, 2011 Share Posted February 13, 2011 Cheers John. I'll have a read of that guide first and let you know if I'm stuck. I'm probably 6months away from a reasonable deposit. I could do it quicker but like to live a bit! Who supports Everton? Out them. Ha ha, oops! I actually thought I was replying to The Merse for some reason, I had one of his post highlighted to reply to and got mixed up (It's been a long day) Link to comment Share on other sites More sharing options...
Beats Posted February 13, 2011 Share Posted February 13, 2011 Ha ha, oops! I actually thought I was replying to The Merse for some reason, I had one of his post highlighted to reply to and got mixed up (It's been a long day) Link to comment Share on other sites More sharing options...
The Gasman Posted February 13, 2011 Share Posted February 13, 2011 You have a PM mate Is your JKB subscription tax deductible, as a business expense? Link to comment Share on other sites More sharing options...
The Old Tolbooth Posted February 13, 2011 Share Posted February 13, 2011 I know Is your JKB subscription tax deductible, as a business expense? Ha ha, I hope so mate! Link to comment Share on other sites More sharing options...
The Merse Posted February 14, 2011 Share Posted February 14, 2011 Ha ha, oops! I actually thought I was replying to The Merse for some reason, I had one of his post highlighted to reply to and got mixed up (It's been a long day) Being in the mortgage game myself I don't need any help, certainly not from a Liverpool fan. Link to comment Share on other sites More sharing options...
The Old Tolbooth Posted February 14, 2011 Share Posted February 14, 2011 Being in the mortgage game myself I don't need any help, certainly not from a Liverpool fan. Bollox, I was hoping you didn't notice (where do you work btw mate?) Link to comment Share on other sites More sharing options...
RussAsia Posted February 14, 2011 Share Posted February 14, 2011 2 questions.. First.. Lets say my mate currently own an un-mortgaged house which is rented out as he lives abroad.. He is thinking about heading back to the UK in a few years so his son gets English as his first language.. he will live there for a probably 2-3 years before moving back here.. What is to stop him from getting back and loading himself up with unsecured loans, moving the money abroad, selling his house then not repaying any of them and waiting out the 7 years for his name to come off the blacklist before returning.. Also would he need to take out all the loans at the same time so that they didnt show up on his credit file.. This is a serious question.. Second.. got a mate who would like to move abroad but he bought his house when house prices were at their peak.. he put down next to no money and got an interest only mortgage.. House prices have now dropped and this house is like a millstone round his neck.. he cant sell it because it would be for much less than he bought it for.. Would it be an option to just stop paying the mortgage for a few months and waiting to get evicted.. save the money he has not spent on his mortgage and let the bank repossess his house.. then the bank would own the house and he would own nothing.. obviously once again he would move away for the 7 years minimum until his name has cleared from the blacklist.. Also how long would it take with no mortgage payments until the bank repossessed the house.. I realise both these are not entirely legal or are frowned upon but it would be interesting to know what the worst case scenario would be for each.. Send me a PM if you dont want to write it down on here. Link to comment Share on other sites More sharing options...
heartsfc_fan Posted February 14, 2011 Share Posted February 14, 2011 2 questions.. First.. Lets say my mate currently own an un-mortgaged house which is rented out as he lives abroad.. He is thinking about heading back to the UK in a few years so his son gets English as his first language.. he will live there for a probably 2-3 years before moving back here.. What is to stop him from getting back and loading himself up with unsecured loans, moving the money abroad, selling his house then not repaying any of them and waiting out the 7 years for his name to come off the blacklist before returning.. Also would he need to take out all the loans at the same time so that they didnt show up on his credit file.. This is a serious question.. Second.. got a mate who would like to move abroad but he bought his house when house prices were at their peak.. he put down next to no money and got an interest only mortgage.. House prices have now dropped and this house is like a millstone round his neck.. he cant sell it because it would be for much less than he bought it for.. Would it be an option to just stop paying the mortgage for a few months and waiting to get evicted.. save the money he has not spent on his mortgage and let the bank repossess his house.. then the bank would own the house and he would own nothing.. obviously once again he would move away for the 7 years minimum until his name has cleared from the blacklist.. Also how long would it take with no mortgage payments until the bank repossessed the house.. I realise both these are not entirely legal or are frowned upon but it would be interesting to know what the worst case scenario would be for each.. Send me a PM if you dont want to write it down on here. Not an expert in this field, but surely the second case here basically means the guy will have a shocking credit rating if he get's his house repossed? Meaning he'll be screwed for the rest of his life? Link to comment Share on other sites More sharing options...
Homme Posted February 14, 2011 Share Posted February 14, 2011 Did not know about the LIFT scheme. I fall just within its limits so it may be of big interest to me. Will bookmark this page. Thanks! Link to comment Share on other sites More sharing options...
southside1874 Posted February 14, 2011 Share Posted February 14, 2011 There was two organisations that bought from the company I worked for. Homes for Scotland amd Canmore Housing, both done good deals to enable folk to get on the property ladder. Link to comment Share on other sites More sharing options...
Do The Dance Posted February 14, 2011 Share Posted February 14, 2011 I am a first-time buyer, saw a flat I like at a fixed price of ?90,000. I have a 10% deposit ready, the most I can borrow on my salary is ?65,000 from Halifax so still a 15,000 discrepency. Is there any places offering 100% mortgages. Cheers for any advice! Try offering 75k to 80k.. What have you got to lose? Link to comment Share on other sites More sharing options...
southside1874 Posted February 14, 2011 Share Posted February 14, 2011 Try offering 75k to 80k.. What have you got to lose? He only has 10% of ?90000 + ?65000 = ?74000. Link to comment Share on other sites More sharing options...
The Gasman Posted February 14, 2011 Share Posted February 14, 2011 I realise both these are not entirely legal or are frowned upon but it would be interesting to know what the worst case scenario would be for each.. Are you an MP by any chance? Link to comment Share on other sites More sharing options...
Bigsmak Posted February 14, 2011 Share Posted February 14, 2011 Yes its good to get onto the housing market. But I would never advise anyone to consider a 100% mortgage. Firstly - you can't get them asnyway. Secondly, and more importantly, If you can't get together a deposit of minimum 15% then I would say that you are not in a financially strong enough position to get a mortgage. It takes hard work and discipline to save this much (depending n your wages), but if you can do, it proves that you are financially capable. So less likely to default. Another thought - People should have enough money put aside for at least 5-6 months of being out of work for whatever reason, or have some kind of unemployment benefit in place (especially if self-employed), this is important as if you know what the dole pays then you would be scared. Link to comment Share on other sites More sharing options...
Do The Dance Posted February 14, 2011 Share Posted February 14, 2011 He only has 10% of ?90000 + ?65000 = ?74000. Ok, he said 15k under. A bid of 75k covers that (ignore the 80k) Link to comment Share on other sites More sharing options...
The Old Tolbooth Posted February 14, 2011 Share Posted February 14, 2011 2 questions.. First.. Lets say my mate currently own an un-mortgaged house which is rented out as he lives abroad.. He is thinking about heading back to the UK in a few years so his son gets English as his first language.. he will live there for a probably 2-3 years before moving back here.. What is to stop him from getting back and loading himself up with unsecured loans, moving the money abroad, selling his house then not repaying any of them and waiting out the 7 years for his name to come off the blacklist before returning.. Also would he need to take out all the loans at the same time so that they didnt show up on his credit file.. This is a serious question.. Second.. got a mate who would like to move abroad but he bought his house when house prices were at their peak.. he put down next to no money and got an interest only mortgage.. House prices have now dropped and this house is like a millstone round his neck.. he cant sell it because it would be for much less than he bought it for.. Would it be an option to just stop paying the mortgage for a few months and waiting to get evicted.. save the money he has not spent on his mortgage and let the bank repossess his house.. then the bank would own the house and he would own nothing.. obviously once again he would move away for the 7 years minimum until his name has cleared from the blacklist.. Also how long would it take with no mortgage payments until the bank repossessed the house.. I realise both these are not entirely legal or are frowned upon but it would be interesting to know what the worst case scenario would be for each.. Send me a PM if you dont want to write it down on here. This should help answer your first point. http://www.freedebtadvice-uk.com/2010/10/moving-abroad-to-run-from-your-debts/ And this should help you answer your second point, here is little pieces on "handing the keys back" which might interest you. http://www.bankruptcyhelp.org.uk/forum/topic.asp?TOPIC_ID=5955 http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/2794492/Mortgages-How-to-cope-with-repossession-and-negative-equity.html Link to comment Share on other sites More sharing options...
southside1874 Posted February 14, 2011 Share Posted February 14, 2011 Ok, he said 15k under. A bid of 75k covers that (ignore the 80k) :lol: Link to comment Share on other sites More sharing options...
RussAsia Posted February 14, 2011 Share Posted February 14, 2011 This should help answer your first point. http://www.freedebtadvice-uk.com/2010/10/moving-abroad-to-run-from-your-debts/ And this should help you answer your second point, here is little pieces on "handing the keys back" which might interest you. http://www.bankruptcyhelp.org.uk/forum/topic.asp?TOPIC_ID=5955 http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/2794492/Mortgages-How-to-cope-with-repossession-and-negative-equity.html Thanks for the information.. it still looks like if he takes out the loans then sells his house quickly after it then moves the money away apart for enough to pay the first years repayment.. The banks would then have 6 years to chase him for the money.. he could be difficult to find because technically his name is not on any of the rental information and his work is done through an agency that doesnt use his name for anything.. after 6 years if they haven't caught him and got the debt back he could return to the UK however there is no chance of him getting another mortgage, credit etc.. since he doesn't intend to go back to the UK except for holidays i am not sure if that would bother him.. is that right or am i still missing something.. Thanks again for your previous reply Link to comment Share on other sites More sharing options...
jvm32 Posted February 14, 2011 Share Posted February 14, 2011 Did not know about the LIFT scheme. I fall just within its limits so it may be of big interest to me. Will bookmark this page. Thanks! I've just used LIFT to purchase a property, its an incredibly good scheme, especially for the first time buyer, however places are extremely limited and their budget was cut last year. If you are thinking about using them then its best to get your name on the waiting list for the application asap, as it could take quite some time for you to receive any funding. I put my name down in August 2009 and didn't get an application form until September/October 2010. Also, their admin is shocking, make sure you get confirmation from them that you are on the waiting list. My mate, who is a financial adviser and sorted everything out for me, had other clients who had put their name on the waiting list after me but were getting the application forms sent to them, when I phoned up to find out what was going on they said they had no record of me. Luckilly I had confirmation from them that I was on the waiting list so sent that back, at which point they fast tracked me through for funding due to their **** up, it still took a good 2/3 months for the funds to be released as well after I had sorted everything from my end. Link to comment Share on other sites More sharing options...
jvm32 Posted February 14, 2011 Share Posted February 14, 2011 Afraid there isn't. There are some very good shared equity schemes on the go though. Look up the LIFT scheme from Link Housing, it's a great way to get your foot on the ladder and has been created for people exactly like you. The scheme is limited to people earning less than 22k. They will pay a percentage between 10-40% of the purchase price. And with this you only need to put down a 5% deposit also. It's a great deal. You can buy-out their stake in the future if you wish too. If you ever sell the property they will be entitled to their stake back and a % of the profit. So if you bought for ?100,000 and they gave you 30% of purchase price... And then you sell for ?110,000 a few years down the line, they will be entitled to their ?30k back, and then 30% of the ?10,000 profit. Seriously look into it, if you need any help I can point you in the right direction for good advice. Its chaned slightly now, the maximum percentage you can get is 30%, and you don't necessarily need a 5% deposit. There are a few lenders (I think Skipton are one of them) who will give you a mortgage without it, but the rates offered are much worse than if you do put down the 5%. Link to comment Share on other sites More sharing options...
Pele_Is_God Posted February 14, 2011 Author Share Posted February 14, 2011 Thanks for the advice guys. Renting it is then! Link to comment Share on other sites More sharing options...
southside1874 Posted February 14, 2011 Share Posted February 14, 2011 Thanks for the advice guys. Renting it is then! There's a couple of flats in the ESPC for around the ?60k mark Link to comment Share on other sites More sharing options...
The Old Tolbooth Posted February 14, 2011 Share Posted February 14, 2011 Thanks for the information.. it still looks like if he takes out the loans then sells his house quickly after it then moves the money away apart for enough to pay the first years repayment.. The banks would then have 6 years to chase him for the money.. he could be difficult to find because technically his name is not on any of the rental information and his work is done through an agency that doesnt use his name for anything.. after 6 years if they haven't caught him and got the debt back he could return to the UK however there is no chance of him getting another mortgage, credit etc.. since he doesn't intend to go back to the UK except for holidays i am not sure if that would bother him.. is that right or am i still missing something.. Thanks again for your previous reply No problem mate, glad to help. Basically, if you move abroad and have debt in the UK, the companies that you owe the debt to have various ways and means of finding out where you've moved to (and believe me, they find more people than they don't), and once they find out where you are, they the sell that debt onto debt collectors in the country where you happen to be residing. I know that quite a few counties have special tie ups with the UK and all work together to catch people in debt by various means, it's not as easy to get away with as you might think. Outer Mongolia might be a safe enough bet though Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.