Where can I get 100 percent Mortgages

greenspun.com : LUSENET : Repossession : One Thread

I am a first time buyer and am finding it difficult to obtain a deposit to obtain a mortage. I would like to know if there are any banks that provide a 100 percent mortgage for the total of 83 thousand.

-- Ant;hony (banthony2k2002@yahoo.co.uk), September 03, 2002


Hi Anthony,

It might be advisable to go to a bank and see an independant financial adviser. However be warned there are many pitfalls to having a 100% mortgage. Firstly you are unlikely to get as good a mortgage deal as you would if you even put a small deposit down, also you are almost guaranteed to have to pay out for a Mortgage Indemnity Guarantee - the pitfalls of which can be testified to on this site. Do make sure that you can afford the repayments were the interest rate to double or even triple as you are probably less likely to be offered a fixed or reduced rate as you want a 100% mortgage. All the best - Chris

-- Chris (chris@anon.co.uk), September 03, 2002.

I got one with the leeds & holbeck and i didn't have to pay the guarantee.

-- Ali Gray (chocnips@lycos.co.uk), September 12, 2002.

Anthony - please reconsider getting a 100% mortgage. Many of us on this site are victims of repo's from the early 1990's when there was a similar panic to buy property and 100% mortgages were rife. They are a total rip off. You still have a load of money to find in addition - what about stamp duty? Solicitors fees?. If you finance up to the hilt you have no room to move if things get tight financially. I get so worried when I see people doing this all over again....

-- Too scared to say (iwasduped@yahoo.com), September 13, 2002.

Have been offered a mortgage of over 100% with Northern Rock - the extra is a loan you have for a year and can use for whatever e.g paying solicitors fees, surveyor or to decorate etc.

Is it worth it?

-- Ami (ami02@msn.com), September 17, 2002.

It depends on what their APR is - if it's a horrendously high interest charge then no. But I would still be very wary of entering the market at this particular time. Now is not a good time to buy everything could tilt as it did in the 90s as I Was Duped so rightly says.

-- Chris (chris@anon.co.uk), September 17, 2002.

Moderation questions? read the FAQ