Who said 100% Mortgages were dead?
Not us…but yes there is a catch, well, sort of…
If you’re a first time buyer with parents (or grandparents ) that own their house with little or no mortgage and who are willing to lend a helping hand, then we could have the answer to getting on the property ladder.
Meet Beth and Luke. Head over heels and newlywed after falling in love in the workplace and moving into rented accommodation 2 years ago. Well it just so happens, they loved their little starter home and were distraught at the thought of moving out when they learned their landlord decided to sell.
Step forward equity rich parents who wanted to help out. Unfortunately however, they didn’t have the £24,000 cash deposit required (well they do like a night out, or did pre-Covid !) for the usual Mortgage application.
We managed to obtain for them 100% of the purchase price as a mortgage as they had good jobs, incomes and credit ratings, and the parents were willing to use the equity in their property to guarantee part of the mortgage without having to hand over any cash.
The win/win is they now have the house, with a mortgage payment lower than their monthly rent and no threat of a landlord asking them to leave at any point.
The only downside is their parents now seem a lot more interested in Beth and Luke’s` financial welfare when they drop-in, which is frequently!
Obviously, there are lots of complex questions around affordability, responsibility and conditions with this product and should be only undertaken after a lengthy conversation with a qualified mortgage advisor who can give totally independent advice.