# 100% Mortgages for young professionals from Ulster Bank



## Elcato (16 May 2003)

Ulster Bank are offering 100% mortgages.  Anybody know if they will advance the deposit on a new house as part of this where the new house will not be ready for another 12 months


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## Sarah Wellband (16 May 2003)

*Re: 100% Mortgage*

Hi,

Very unlikely as they do not have security until the purchase completes however as this product has only been launched today.

Please note that the 100% mortgage is only available to the following professionals; 

Lawyers   
Doctors   
Opticians   
Accountants   
Dentists   
Vets   
Pharmacists 
  The applicants must be newly qualified and over age 23.

I'll have more details next week.

Kind regards,

Sarah

www.rea.ie


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## rainyday (16 May 2003)

*Re: 100% Mortgage*

It's interesting to note that the list of professions to whom UB will give 100% almost exactly matches the [broken link removed], with the exception of the accountants.

Pure co-incidence, I'm sure...


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## Csider (16 May 2003)

*100% Mortgage*

My understanding is that the product is aimed at young professionals who have been in education for 7 years and more (in some cases) and will not have had a chance to save for deposits. However on the other side of the coin they are potential future very high earners with relative job security.

Scottish Widow (?) have been offering a similar product in the UK for many years.

I would have thought that the whole point of the 100% mortgage is to allow such people to buy without having to save the deposit.

I don't understand the security point as I could borrow over 30k unsecured on a motor loan.


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## Contango10 (17 May 2003)

*100% mortgages for so-called professionals*

Well done for noticing that Rainyday.  On the strength of their ever increasing incomes, thanks to their cartels, the bank offers them 100% mortgages.

Whereas their customers are fleeced by high rates and must save for a deposit.

C10


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## Csider (17 May 2003)

*100% Mortgage*

Nothing to stop you training for 7 years or more to become part of the "cartel".

Alternatively become a plumber like many such professionals have done in the UK because the pay is better.


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## setanta (19 May 2003)

*100% UB*

Hi Sarah,

As one of the so-called professionals, who is apparently earning a fortune, I would be interested to hear more of this.  Incredibly, I would welcome the chance to avail of 100% finance, which will come as a shock to some who consider that all the members of my "Mafia" can pay for everything in cash!

Anything further on it at this stage?  I can't see anything on UB's website about it.

S


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## rainyday (20 May 2003)

*Re: 100% UB*



> Nothing to stop you training for 7 years or more to become part of the "cartel".



You miss my point CSider - It's not jealousy that I'm 'outside the club' - It's that cartels shouldn't exist in the first place.


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## Csider (20 May 2003)

*Cartels?*

A cartel made up of thousands of individuals?  Hardly conducive to synchronicity of action is it?  Competition analysis is not an exact science and your results will depend on the economic theories you apply.

Do these professions make good money?  In general, yes.
This is more to do with training and education leading to knowledge which consumers are prepared to pay for. In general, people do not pick doctors, opticians, pharmacists based on the price they charge because most people get these services for nothing (whole new argument there - if something is free it is abused etc)

In any event this is moving away from the point of the thread which was if anybody had any further insight or information in relation to the 100% mortgages which I believe have been given the green light by the Central Bank.


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## Sarah Wellband (20 May 2003)

*Re: Cartels?*

I should have full details this afternoon, I'll post them as soon as available.

Sarah


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## setanta (20 May 2003)

*UB*

Thanks Sarah


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## rainyday (20 May 2003)

*Re: UB*



> This is more to do with training and education leading to knowledge which consumers are prepared to pay for.



That's a matter of opinion. I'd reckon it's more to do with the barriers to entry to these professions (managed by those who currently benefit from the high prices paid for their services)  and the Dickensian apprenticeship/training policies (e.g. junior hospital doctors on 6 month contracts, junior barristers 'devilling' for free etc etc).


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## Liam D Ferguson (21 May 2003)

*Re: UB*

Hi all, 

We've been offering 100% mortgages to doctors and dentists since last year, and are pleased to see the scheme has been extended to include a few more professions.  

No catches - no mortgage indemnity bond, interest rates the same as UB's normal 92% loans (including ECB +1.15% tracker), strictly 100% of purchase price (no borrowing Stamp Duty), lending criteria broadly similar to UB normal.  They've imposed a new maximum of €400,000 on this scheme, but that probably won't worry too may First Time Buyers.  

Liam D Ferguson
www.ferga.com


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## John (21 May 2003)

*100% Mortgage*

Liam or anybody else - How has it worked in practice.  Do you have to fund the deposit yourself and then the total amount is drawn down on completion.


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## Liam D Ferguson (21 May 2003)

*Re: 100% Mortgage*

Hi John, 

Yes that's right.  In practice, once you have your loan offer for 100% finance, it should be no problem getting an overdraft for the deposit, although a loan from family or friends would be cheaper!

Liam D Ferguson
www.ferga.com


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## John (21 May 2003)

*100% Mortgage*

Thanks for the info.


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## UB (30 May 2003)

***

Any news Sarah?


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## ClubMan (30 May 2003)

*Re: **

For what it's worth the _Sunday Tribune_ had an article about such 100% mortgages last weekend featuring comments from our own _Liam D. Ferguson_.   It's not online so try your local library if you can't obtain a copy.


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## UB (30 May 2003)

*Tribune*

Thanks Cludman

Liam - could/would you cut and paste the article from your own hardcopy ?
Thanks


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## Csider (30 May 2003)

*Irish Times*

Irish Times Business Section has a piece on 100% mortgages.  It is online but I didn't cut and paste as I dodn't want to breach copyright.


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## Liam D Ferguson (30 May 2003)

*Re: Tribune*

Hi UB, 

I didn't write the piece, Niall Brady did.  I just added in my tuppence worth in a phone conversation with Niall.  So I'm afraid I don't have a copy to cut and paste.  

Liam


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## donieh1975 (5 Jun 2003)

*Re: 100% Mortgage*

Hi folks, 
has anyone heard any more news about this product? Is the list of professions exclusive to the one mentioned previosly or will there be flexibility. I'm an engineer with a semi-state body and I earn well over the minimum of €33k so I'd be very interested in this product if my occupation was included. 
Any comments, etc?


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## Sarah Wellband (5 Jun 2003)

*Re: 100% Mortgage*

Hi Donie,

The 100% mortgages are currently limited to the professions already mentioned. Time will tell if other occupations will be added but at the moment you will be limited to the 92%. Sorry.

Kind regards,

Sarah

www.rea.ie


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## ClubMan (5 Jun 2003)

*Re: 100% Mortgage*

Bear in mind that while 100% mortgages may be possible in some cases this does not always mean that getting to such a level of debt is advisable!


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## garrettod (15 Jul 2003)

*...*

Hi,

Good to see the introduction of 100% mortgages, although like others here, I would also like to see the list of "professionals" extended.

While I cannot dispute Clubman's comment above:



> ... while 100% mortgages may be possible in some cases this does not always mean that getting to such a level of debt is advisable!




I would draw his attention to the fact that there is little difference in monthly repayments, between a 92% mortgage & a 100% mortgage ...over a likely 35 or 40-year term, with a low rate of interest similar to that on offer throughout the Irish marketplace.

Loans should be provided based upon a borrowers ability to repay, rather than their ability to provide satisfactory security, imho.  Security should only be a secondary consideration, to repayment ability  

regards

G>


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## rainyday (15 Jul 2003)

*Re: ...*



> a 100% mortgage ...over a likely 35 or 40-year term



Are people really taking out 40 year mortgages now? I thought 30 year was the longest possible. Surely it would be crazy to have a 30-35 year old taking out a 40 year mortgage!


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## terry62askaboutmoney (17 Jul 2003)

*100% mortgage*

Is the Ulster Bank 100% mortgage available in Northern Ireland, and what other lenders in the north are offering 100% terms on finances?


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## garrettod (1 Aug 2003)

*...*

Hi Rainyday,

Welcome to the world of a wanna be first time buyer (average age approx 23-26).  Why would they not be prepared to try and borrow over 40-years, given this would probably:

* Match their expected working life
* Help them get a loan to buy their first property

I appreciate it will result in them paying far more in interest, given the longer term of the loan, but hey ... beggers cannot be choosers (I hate that saying btw  )

Suffice to say, anyone that did take on a mortgage for 35 - 40 years should try and repay it over a shorter period, by increasing payments as their disposable income rises ... hence reducing the burden & total interest paid.

Oh, btw, interesting to note that Ulster Bank have decided that their very own profession (Bankers) are not professionals  

... nuff said     

regards

G>


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## Donie (9 Sep 2003)

*100% UB Mortgage*

Hi folks,
            has anyone heard if Ulster Bank has extended the list of occupations covered in this scheme? Also, have any other lenders entered this market?


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## adrian (9 Sep 2003)

*100% UB Mortgage*

garrettod,

Ability to repay at a particular point in time is fine, but circumstances can change. You lose your job, interest rates rise so you can no longer afford your mortgage repayments. You need to sell your house, but the market has just crashed, so you'll only get 90% of the value you paid for it. The bank isn't going to be happy with you only paying 90%, when you took out a loan for 100%. Even when they repossess the house and sell it, they won't get their money back. So by not giving 100% loans to everyone aren't they just protecting themselves against the potential scenario of negative equity?


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## smaug (4 Feb 2004)

*northern ireland 100% mortgage providers*

A friend of mine in Belfast is getting a 100% mortgage I think from the Halifax ? you could find out from them.


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## legend99 (4 Feb 2004)

*..*

Getting out a 35 year mortgage for me was done just to keep down my repayments for the first 3-4 years while I get everything set up etc.
But there is no way I would like to or indeed plan on taking the 35 years to repay. Would hope to do it in the 20 but at least having to only pay a lower amount if I was strapped for cash in the first few years makes it possible to buy a house and have some kind of quality in my life...


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## bean counter (13 Mar 2004)

*re:*

So the list of professionals is:
*        Lawyers
*        Doctors
*        Opticians
*        Accountants
*        Dentists
*        Vets
*        Pharmacists

The above list is fairly self explanatory. In the case of lawyers I presume this covers both solicitors and barristers. However, what qualifications are covered by under the profession of accountancy? There are after all many different qualifications: ACA, ACCA, CIMA, CPA etc.
Do all these accountancy qualifications qualify under UB rules?

Finally, do you have to be fully qualified or would a registered student of one of the accountancy bodies (e.g ICAI) be eligible?


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## Chord of Souls (15 Mar 2004)

*Re: re:*

If the qualification confers the title "Accountant" on you, you qualify.  Must be fully qualified and practicing.


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## Ina (14 Jul 2005)

*Re: >> 100% Mortgages for young professionals*

Just wondering, did anyone see the bit on TV3 news las nite about 100% mortgages?
 I missed most of it but would like to know more about this. Can anyone fill me in?
Thnks, Ina


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## jhegarty (14 Jul 2005)

*Re: >> 100% Mortgages for young professionals*



			
				Ina said:
			
		

> Just wondering, did anyone see the bit on TV3 news las nite about 100% mortgages?
> I missed most of it but would like to know more about this. Can anyone fill me in?
> Thnks, Ina



See : here and here


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## Ann-Marie (14 Jul 2005)

*Re: >> 100% Mortgages for young professionals*

First Active launches Ireland’s first 100% mortgage for First Time Buyers
Details: 	

First Active has today launched Ireland's first 100% mortgage for First Time Buyers, a mortgage offering covering 100% of the value of a home.

Building on innovation shown with the launch of the First Active Current Account Mortgage™ over two years ago and First Active's experience in providing 100% mortgages for professionals, a 100% mortgage for First Time Buyers will open up a wider range of properties to those looking for a first home by uniquely supplying customers with 100% finance to cover the full value of their first home.

Take for example a typical first time buyer home valued at €245,000. Based on a 92% mortgage for a first time buyer, the mortgage amount would be just under €20,000 short on the purchase price while if purchasing a €300,000 property a shortfall of almost €25,000 would be experienced.

Commenting on the launch Mr. Brendan O'Hora, Head of Marketing at First Active said: "As a lender we continue to see the frustration of many first time buyers who can afford to repay a mortgage on the full value of their home, but who, until now, have been unable to get a 100% mortgage. This offer will make it easier for First Time Buyers to get on to the property ladder".

Customers may initially be required to fund items such as a booking fee or a deposit. However, on closing the sale, the mortgage cheque drawn down will cover 100% of the value of a home, meaning any excess can be used to cover costs such as legal fees, house decoration or furniture purchase.

The 100% mortgage for First Time Buyers will be available across First Active's suite of mortgage products including its flagship product, the Current Account Mortgage and standard variable rate (with two year discount option). Customers can also avail of a Tracker Mortgage with an attractive APR of 3.3%, and fixed rate options. 100% mortgages will be available through the network of 57 First Active Mortgage & Investments Stores nationwide and through the broker network.

For more information contact your local First Active store.

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Lending criteria, terms and conditions apply. Over 18 years only. Mortgaged property must be within the Republic of Ireland, offer only available for purchase of completed residential properties. Not available for purchase of 1 bed or studio apartments. Only one property per customer. The maximum sum advanced is 100% of the lower of the valuation or the purchase price. The cost per month of a typical €100,000, 20 year variable rate mortgage at APR 3.6% is €581.50 excluding insurance. If rates increase by 1% an additional €52.77 would be payable monthly. Offer not valid on 6-month discount variable or 1, 5 and 10 year fixed rates. Security and Insurance are required. WARNING YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP PAYMENTS ON A MORTGAGE OR ANY OTHER LOAN SECURED ON IT. VARIABLE RATE LOANS: THE PAYMENT RATES ON THIS HOUSING LOAN MAY BE ADJUSTED BY THE LENDER FROM TIME TO TIME. Calls may be recorded.

First Active plc is regulated by the Irish Financial Services Regulatory Authority.


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## Sol28 (14 Jul 2005)

*Re: >> 100% Mortgages for young professionals*

And watch now as House Prices start rocketing with all the new buyers hitting the market at the same time. Ridiculous that the banks will fully buy your house for you!


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## pint6 (14 Jul 2005)

*Re: >> 100% Mortgages for young professionals*

Hello All,

What exactly is a booking deposit, when banks re paying 100% will that not cover this deposit?

Regards,
Pint6


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## nt00deep (14 Jul 2005)

*Re: >> 100% Mortgages for young professionals*



> What exactly is a booking deposit, when banks re paying 100% will that not cover this deposit?


 
you pay your booking deposit (usually close to 2%) to give the seller 'confidence' to issue contracts.  This has nothing to do with mortgage.  You then pay balance of 10% on signing the contracts.  The subsequent closing date (draw down of loan) will release 100% funding from the bank, leaving you being able to claw back your initial 10% outlay, less legal fees / stamp duty.


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