Discussion
A friend has found themselves in a bit of a predicament and has to move rather quickly. They have a poor credit rating and zero savings but the ability to maintain payments on bills (never defaulted on rent or council tax, etc.).
They have a decent amount of debt and some kind of agreement to pay that off.
What kind of likelihood is there of them getting a 100% mortgage? Do many people manage to get them? And are the fees/ interest rates ridiculous? Trying to find out a bit more info to manage their expectations.
They have a decent amount of debt and some kind of agreement to pay that off.
What kind of likelihood is there of them getting a 100% mortgage? Do many people manage to get them? And are the fees/ interest rates ridiculous? Trying to find out a bit more info to manage their expectations.
Trendsetter said:
I did suspect that but wasnt sure how to put it kindly.
Does the value have much impact? Itd be below £100k or would it just be a straight "no thanks"? Im no mortgage broker but I couldnt imagine the banks would jump at the chance
It would be a non starter I think. Even on 100k I would suspect a deposit of around 15-20k. Does the value have much impact? Itd be below £100k or would it just be a straight "no thanks"? Im no mortgage broker but I couldnt imagine the banks would jump at the chance
Trendsetter said:
A friend has found themselves in a bit of a predicament and has to move rather quickly. They have a poor credit rating and zero savings but the ability to maintain payments on bills (never defaulted on rent or council tax, etc.).
They have a decent amount of debt and some kind of agreement to pay that off.
What kind of likelihood is there of them getting a 100% mortgage? Do many people manage to get them? And are the fees/ interest rates ridiculous? Trying to find out a bit more info to manage their expectations.
Why not rent up for a year and build some resemblance of a deposit then go for it. They have a decent amount of debt and some kind of agreement to pay that off.
What kind of likelihood is there of them getting a 100% mortgage? Do many people manage to get them? And are the fees/ interest rates ridiculous? Trying to find out a bit more info to manage their expectations.
Also the other debt that’s going to dramatically reduce the amount you can borrow so clear the debt /pay it down and build a deposit.
Or take a few years doing this and then he/she will be in a good place and used to living on much less so could take a term lower than 25 years in all likelihood which is a good thing.
The person has history of being a poor re-payer given their poor credit rating and 0% deposit means that the risk is entirely with the bank and they don't like that.
I'm afraid they have absolutely no chance, and quite rightly. Who would want to risk lending them any money whatsoever given their repayment history?
Apologies if that sounds harsh, but they need their expectations managed carefully.
I'm afraid they have absolutely no chance, and quite rightly. Who would want to risk lending them any money whatsoever given their repayment history?
Apologies if that sounds harsh, but they need their expectations managed carefully.
Darkslider said:
95% is as much LTV as you'll get these days. Don't be tempted to take out a personal loan to finance the 5% either, that's a guaranteed way to get an application knocked back.
Interestingly it's not always the case. I'm a mortgage underwriter and the bank I work for will accept a loan as an acceptable source of deposit (as long as it's not also from us and the monthly payment is included as an ongoing commitment). Always seems strange to me personally.
We do look at any 95% LTV applications in much more detail generally though due to the higher risk.
Sten. said:
Interestingly it's not always the case. I'm a mortgage underwriter and the bank I work for will accept a loan as an acceptable source of deposit (as long as it's not also from us and the monthly payment is included as an ongoing commitment). Always seems strange to me personally.
We do look at any 95% LTV applications in much more detail generally though due to the higher risk.
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