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100% Mortgage

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  • 03-08-2005 2:18pm
    #1
    grasshopper
    Closed Accounts Posts: 98 ✭✭


    Anyone know what the catch is??

    Would you be screwed in the long run?


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    #2
    Downtime
    Registered Users Posts: 1,537 ✭✭✭Downtime


    There's been about 6 threads on this already. There are no catches just a lot of criteria. You'd be screwed if you culdn't pay. Search for the other threads for more info.


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    #3
    hussey
    Registered Users Posts: 6,240 ✭✭✭hussey


    * The new 100% mortgage will not be available to purchasers of 1 bedroom or studio apartments, for site purchase or self builds.
    * Minimum time in employment of 3 years.
    * Applies to first time buyers only
    * No guarantors accepted.

    you would be paying an extra 8% over 30/35 years
    eg - if you bought a house for 250000, (8% = 20k) with 100% mortage at rate of 3.5%
    over 35 years
    you would pay back 433,956

    with a 92% mortage - 399, 239, different 34, 717

    this is just simple - no tax relief etc
    http://www.bankrate.com/brm/popcalc2.asp


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    #4
    Victor
    Registered Users Posts: 78,388 ✭✭✭✭Victor


    grasshopper wrote:
    Anyone know what the catch is??
    No catch per se, but it shoves up house prices and means people are (relatively) over-exposed to debt. If the market drops, you have no equity and face having to sell into a falling market. AND face negative equity.

    The bank is asking you to face all the risk.


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    #5
    Thomond Pk
    Closed Accounts Posts: 449 ✭✭Thomond Pk


    Victor wrote:
    The bank is asking you to face all the risk.

    The bank is taking the risk as well as no-one has any safety net if either your personal circumstances change or if the market changes. In many ways it could be compared to taking out a loan on a car and having third party insurance only. If you cause an accident there is nothing to fall back on.


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