1st time buyer with deposit issues

El Chucko

Seeing as my rent is now more than the mortgage repayments on a house I've had my eye on I looked into a it and was told over the phone by the broker that I'd get the 92% maximum.

Trouble is I've got less than half the required deposit. I know 100% mortgages are out the window but is there any flexibility allowed, or would my situation qualify me for the Local Authority part-ownership scheme?

Any advice from those more enlightened would be a help.

oceanclub

El Chucko wrote: »

Seeing as my rent is now more than the mortgage repayments on a house I've had my eye on I looked into a it and was told over the phone by the broker that I'd get the 92% maximum.

Trouble is I've got less than half the required deposit. I know 100% mortgages are out the window but is there any flexibility allowed, or would my situation qualify me for the Local Authority part-ownership scheme?

Any advice from those more enlightened would be a help.

First, have you asked for a rent decrease?

P.

jen_23

Wait!! And save up the deposit you need. Your not going to lose anything by waiting and it may even play into your interests as you will prob get somewhere much cheaper and nicer six months to a year down the road!

It is difficult to wait esp when you have it in your head that you want somewhere now. (I'm in the same boat right now and have the deposit ready to go) but in the long run you will be in a better position the later you leave it to buy as the developers will begin to be under pressure to shift houses to repay the debts etc etc etc.... (all stuff said before in recent threads).

Rotti Express

How long do you reckon it would take for you to get the deposit you need? Me I don't see house prices rising for awhile because of so many people losing their jobs, taking pay cuts and thebanks not lashing money at FTBs. Whatever you do, don't go down the road of going to the credit union and borrowing the deposit.

Senna

El Chucko wrote: »

Seeing as my rent is now more than the mortgage repayments on a house

Yes with interest rates at HISTORICAL lows. How will it look when standard variables are up at 6-8%, mortgage interest relief is gone, the cost of rent has dropped and your in negative equity??
Dont fall for the EA spin for 1yr LOW LOW fixed rate on a 40 year mortgage.

Anyway, you don't have the deposit, so your lucky the decision is being made for you.

gurramok

Would love to know how the rent is dearer than the mortgage, assuming an urban pad of 2 bedrooms or more and taking Senna's points on board.

Thank your lucky stars you do not have the 8% deposit.

jmayo

92% mortgage secured on a property whose value is falling all the time.
Real smart.

Yeah I can just picture OP on these forums in a few years complaing that interest rates have risen and they can't pay the mortgage on their negative equity pad.

Why are you in such a hurry to buy.
Oh I forgot "rent money is dead money", "prices have bottomed out" and "must get on the ladder".

Has anybody learned anything in this f***ing country ?
God be with the days when survival of fitest meant you didn't get eaten by wolves or bears.