Mortgage advice

[MrFrost]

Anyone on here clued up on mortgages.

I'm looking to buy with the other half for the first time, both of our credit histories are far from perfect and after a recent trip to the bank we were told there was basically zero chance of us getting a mortgage until we had about 40% deposit which will never happen!

We really want to buy as renting is throwing away dead money, added to the fact that we could end being asked to leave at any time if the landlord decides to sell up which has happend a couple of times before.

We have seen a house, but only have 5% deposit, and because of our less than perfect history, I doubt this would be enough even with a sub prime lender.

[5minstogo]

MrFrost wrote:

Anyone on here clued up on mortgages.

I'm looking to buy with the other half for the first time, both of our credit histories are far from perfect and after a recent trip to the bank we were told there was basically zero chance of us getting a mortgage until we had about 40% deposit which will never happen!

We really want to buy as renting is throwing away dead money, added to the fact that we could end being asked to leave at any time if the landlord decides to sell up which has happend a couple of times before.

We have seen a house, but only have 5% deposit, and because of our less than perfect history, I doubt this would be enough even with a sub prime lender.

Having worked in sub prime lending I would be very wary of certain lenders.  As hard as it sounds I would be tempted to save as much as you possibly can for a deposit and rent for the time being.

[dfo2010]

try somewhere like william h brown where they have an indepentant morgage advisor .

[not on facebook]

is there not a scheme where you half buy and half pay rent
or som'ert on them lines where later rather than sooner
you will be home owner???

or have just miss read it

[nightporter]

You could put the 5% on Rovers getting promoted. Job done.

[Clarkz]

Want my advice? Don't bother, keep renting. The repercussions of the current economic climate suggest that you'll be paying the mortgage off well into your pension anyway.

I'm pretty set on renting here until I've enough money to bugger off to a country where I can buy a house for the cost of a Mars Bar.

[Snods Shinpad 2]

MrFrost wrote:

...after a recent trip to the bank we were told there was basically zero chance of us getting a mortgage until we had about 40% deposit which will never happen!

I'm with Clarkz.

My advice Frosty, would be to stay renting, save as much as you can, and buy alot more for your money in 12-36-46 months. The bank is demanding a 40% deposit because of risk. Basically a few years ago, you would have been able to get a 100% mortgage because prices were predicted to keep rising, therefore the banks saw less risk in getting their money back. If they are asking for a 40% deposit (amongst other things) it is because they see a risk in the value of the house falling substantially.

'Renting is dead money'. Bit of an old chesnut that. Paying interest to the bank is dead money too. If the price of the asset is rising, then maybe there would be an argument, but I personally can't see how prices cannot fall and probably by quite a large amount in this environment.

[jucyberry]

I never get the whole dead money thing... You wouldn't go with out shoes because they wear out and are not kept forever, living now is what matters, living when you are dead, keeping things when you are gone just doesn't happen. If you see what I mean...

and as Snods says the way prices will no doubt freefall how many people are going to be paying for mortgages that are double what the house is actually worth... scary thought  that one..

[dumbroofer]

just a theory,try a loan,albiet a large one buy a cheap house go to the bank and remortage said house. pay off loan n hey presto. not looked at that way but years ago when i bought a old house that was what the building society basically told me to do as they would not lend me the purchess money but would lend to me if i owend it

[BobG]

If you've got one house, even on a mortgage, there's loads of ways of raising more dosh. Doesn't help Mr Frost but if you do ever get to have your name on the deeds, it's pretty much a license to play ducks and drakes with the banks and building societies. A mate and I have been doing it for 15 years now. Extremely succesfully too There is a benefit in the long run but you have to be able to get started. If you really do wnat to do that Mr Frost, have a look online and in the YP for specialists in arranging mortgages for people in your category. There are enough of 'em around. I know a cracker - but she's based in Bath

The one thing you do NOT, ever, do, is walk into a Bank or a Building Society and say 'Give me a mortgage'. That plays by their rules. You should be aiming at playing by your rules. A decent advisor will play off one lender against another to your benefit.

As a little inducement and example of what can be done, my mate and I jointly own a seven figure property portfolio with a combined personal investment of £14K.

BobG

[Thinwhiteduke]

MrFrost wrote:

Anyone on here clued up on mortgages.

I'm looking to buy with the other half for the first time, both of our credit histories are far from perfect and after a recent trip to the bank we were told there was basically zero chance of us getting a mortgage until we had about 40% deposit which will never happen!

We really want to buy as renting is throwing away dead money, added to the fact that we could end being asked to leave at any time if the landlord decides to sell up which has happend a couple of times before.

We have seen a house, but only have 5% deposit, and because of our less than perfect history, I doubt this would be enough even with a sub prime lender.

Frosty.

Give these a try / call....

http://www.thinkmoney.com/mortgage/

...just ahd really good dealings with these, we have just come up for renewing our mortgage as our five year fixed was about to expire, no one ese has come close to finding us a good a deal as these have - 10 year fixed, zero deposit, and paying £75.00 a month less than we are right now, the Mortage itself will be with these people.....

http://www.principality.co.uk/default.aspx?page=1

...who, when you speak to them, can't do enough to help you out.