Advice/Help Mortgage

[mattchewone]

Right well, we (me and the missus) are looking to move out really. At the minute we are just looking really to get an idea of prices and what apartments are out there.

We have found a nice apartment development not so far away from our rents now. But we need financial advice so we can work out what we afford, so we shall be getting in contact with an advisor this week hopefully.

There is one thing that we are unsure about and would like some advice from you wonderful people!

They do a shared equity of 25% i believe where you own all 100% but only pay 75% at first and have 10years to pay the other 25%. Just wondering if anyone knows much about them, if there a good idea for first time buyers, if you need a deposit. if there is anything we need to look out for.

At the moment we dont have a deposit. We are both full time, have finance on cars and have a little bit on cards each, although ill have mine paid of this month.

Matt

[Ashleyp]

best to speak to a professional mate

allthough saxp can offer some advice, youd want to get it 100% from an adviser, dont want to mess up in this kind of situation

[Sammy-Boy]

There is a development company near me who do the same thing. Its a good idea epscially as you said for first time buyers its not a catch but very useful to people like yourselfs

[a17vts]

I'm a mortgage broker and in situations like the people who are offer the deal tent to have a company/person you need to go through? Maybe worth contacting them to see if they can help as all the schemes work differently.

If you have any question feel free to e-mail me at work tom@mortgagemonitor.co.uk

[mattchewone]

The thing i am not to keen on with the shared equity is they keep 25% then you have 10years to pay it, BUT at market value! Which means it could be a lot more in 10years than it is now.

[mattchewone]

I'm a mortgage broker and in situations like the people who are offer the deal tent to have a company/person you need to go through? Maybe worth contacting them to see if they can help as all the schemes work differently.

If you have any question feel free to e-mail me at work tom@mortgagemonitor.co.uk

Yes there is an independent company that you need to go through in order to get this offer. Which we will contact early this week for information.

I take it NO where does 100% mortgages or anything any more now then. Whats best for first time buyers?

[mattchewone]

Any help would be great. But honestly i just dont think we will be able to afford it :n: bummer!

Im on approx. 17,500
shes on currently 12,500 ( but has been promoted and will be on +£14k)

So just dont think we will get any decent amount of money! So moving out anytime soon will not be going ahead i believe!

[a17vts]

There is no one else where who will do 100% mortgages at present, which is why when you do schemes like this they always make you go though a certain company as they do things which make it look to the lender that you are putting a deposit down when your not.

In regards to being able to afford it only you can really judge that.

[kristel10589]

My mum and dad thought it'd be impossible to get a mortgage that they could afford. Then we came across these people.... http://www.flower-ifa.com/ They ask what you can afford and suit the right mortgage for you. Self-cert mortgages ftw :y:

[saunders]

Just got our mortgage should be moving in in about 3 weeks. DONT get part buy! You have to get a normal mortgage out on the 75% then you pay interest on the other half at the rate of inflation which at the moment is like 4%!! So it would cost almost as much if not more than a full mortgage.

Our mortgage is £686 a month for a two year old house, which is great and its a repayment mortgage meaning that we will be paid up at the end of the term. I would advise if you can't afford to pay 5% deposit, and have a repayment mortgage then in the current climate it would be too risky for you and I would just rent:y:

Hope that helps

[a17vts]

Self-Cert mortgages are pretty much a thing of the past, no one really does then well not with a decent rate.

The problem this guy has is that as he is buying this house as part of the deal a clause will be they have to use a certain company to get the mortgage so he is unable to shop around.

[Mark51]

might be better to wait until 'the crunch' has finished mate. me and my girlfriend have a 100% mortgage of £115k purely becasue this was the best deal at the time. we pay just short of £700 each month for the mortgage and insuarnce on it. we decided we wanted to move in together and then 5 months later we had bought our house, abit rushed but worth it imo.

its different in your situation because of the money you earn and the way the market is now. its going to be very hard for you to get a mortgage anywhere for 100% of the value of the property you want to buy. if your really wanting to move out asap then id look at somewhere to rent first and do that for a year or so and see how you get on living together and then see what the markets like then. OR stay how you are and save up for a deposit, pay off the finance and save for things to put in the house/flat.

personally i wouldnt trust the 25% scheme as i wouldnt be 100% sure how you would stand if you needed to sell the proerty if something were to change. plus 25% of the market value???? this is obviously going to change from year to year, month to month. you could find it been once price one month and alot more the next month.

as someone has already said get Proffesional advice from an independant advisor

[saunders]

Self-Cert mortgages are pretty much a thing of the past, no one really does then well not with a decent rate.

The problem this guy has is that as he is buying this house as part of the deal a clause will be they have to use a certain company to get the mortgage so he is unable to shop around.

I just think people are silly if they can only just afford a mortgage, as the reality is rates will go up and you need to ensure your income will be able to take (in my opinon) a rise in rate of up to 3%. Otherwise you will jsut end up being kickout like all those that have been caugh recently. Plus the price of renting has gone down alot.

[Danr]

Don't buy a house now Matt. You'll have a huge mortgage and you haven't lived with the Mrs yet. Things could all go pete meaning you have to sell. Market has dropped further and your in negative equity.

[a17vts]

IMO rates will come down over the next year or so but that is a different discussion.

I also agree that you should be able to afford your mortgage & have money left at the end of the month. A good way to see if you can afford a mortgage is to work out what the monthly payments will be based on rate of 7.5% on a repayment basis, then if you can afford that you, in theory can afford the property. That is just what I use with most of my first time buyer clients.

[mattchewone]

cheers for the help guys. We will ring the company they have suggested to see what they say and can advise really. Just we liked the apartment. We shouldn't of started to look yet as we are not sure what we can borrow.

When we find out how much we will be able to afford and have saved for a deposit or something they will be long gone. We can only dream.