0% or 5% mortgages

[JmeSwaz]

Just after some mortgage advice. 0% and 5% mortgages are starting to come back on the market, however here in the south east properties are very expensive. I've searched google but I can't find much on no deposit mortgages. Can anyone offer any advice?

[Sarnie]

JmeSwaz said:

Just after some mortgage advice. 0% and 5% mortgages are starting to come back on the market, however here in the south east properties are very expensive. I've searched google but I can't find much on no deposit mortgages. Can anyone offer any advice?

5% mortgages exist and have been for a few years.

0% mortgages don't exist. Well, strictly speaking, there are a few but they are overly elaborate schemes that involve parents providing a 20% deposit that they get back in 3 years etc but far removed from a straight forward 100% mortgage they used to be available about a decade ago......

[JmeSwaz]

Thanks for the reply Sarnie. Only one further question, is it still the maximum mortgage = 5 x annual salary?

[Sarnie]

JmeSwaz said:

Thanks for the reply Sarnie. Only one further question, is it still the maximum mortgage = 5 x annual salary?

No......4.5x income for FTB's............especially at c95% LTV.............

[sidicks]

Sarnie said:

No......4.5x income for FTB's............especially at c95% LTV.............

Aren't these things calculated on 'affordability' measures I.e, based on monthly outgoings, rather than the old fashioned Y x annual salary measures used in the past?

[Sarnie]

sidicks said:

Aren't these things calculated on 'affordability' measures I.e, based on monthly outgoings, rather than the old fashioned Y x annual salary measures used in the past?

Both.

[sidicks]

Sarnie said:

Both.

Ok, thanks

[Welshbeef]

Sarnie said:

sidicks said:

Aren't these things calculated on 'affordability' measures I.e, based on monthly outgoings, rather than the old fashioned Y x annual salary measures used in the past?

Both.

And dependants really have an impact
Also PCP now has an impact

[Sarnie]

Welshbeef said:

And dependants really have an impact
Also PCP now has an impact

Indeed, this is why affordability calculations were brought in alongside income multiples, which are too generic to be applied to everybody...........

[Welshbeef]

Sarnie said:

Welshbeef said:

And dependants really have an impact
Also PCP now has an impact

Indeed, this is why affordability calculations were brought in alongside income multiples, which are too generic to be applied to everybody...........

Plus BTL mortgages as it could become vacant so you'd need to be able to cover all debt servicing.