100% mortgages-what if we have to sell early?

Hi,

We are looking to get a 100% Mortgage as first time buyers. If the property value declines in the next few years and the house needs to be sold for any reason, we could be in serious debt? Does anybody have a 100% mortgage? Have you any advice on this?

Thanks.

Re: 100% Mortgages

Don't buy if you feel that you will be in serious trouble in the next few years. It might not be what you want to hear, but it's the only sensible advice I can think of if you can forsee a forced quick sale in few years when you will have no (or negative) equity in your home..

Is there any particular reason you feel that you will have to sell the property in the next few year?

Myself and my partner have a 100% mortgage. While we would like to trade up in a few years, there is no necessity to do so and we cannot forsee a situation where we would have to sell for a price less than the amount outstanding on the mortgage (touch wood!).

I don't forsee a quick sale! 100% Mortgage and then trade up in a few years would be the plan. Just wanted to see if anybody had negative feedback. Information that isn't obvious from the beginning....??

First Step said:

Information that isn't obvious from the beginning....??

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Take it or leave it, don't be sarcastic. Your first post was very general in nature.

As a matter of interest, what do you think the odds are of finding someone who has taken a 100% mortgage in the past few years only to see the loan to value ratio increase over 100% give that fact that prices have been rising steadily in the past few years (and prior to this there were no 100% mortgages available).

The 'advice' I gave still stands-if you feel that you want to move in the next few years (forced sale or otherwise) and are concerned about the value of your house compared to the mortgage outstanding, don't buy now.

Hi,

I was in the UK when negitive equity hit town, and I can tell you it is not a nice experience, there is no way out for you if this happens, as you will still owe the bank the full mortgage regardless of the property price when you go to sell, if this is a concern then wait until you have a deposit together, then at least you have a buffer zone.

CCOVICH said:

Take it or leave it, don't be sarcastic. Your first post was very general in nature.

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No sarcasm intended CCOVICH. Sorry you interpreted it that way.
Just looking to find out some general information.
Thanks for your points.

Thanks CathyK. Note your points.

Fair enough. I'm sorry if I misinterpreted your remark.

Ah, group hug

It's the same story no matter how much % the mortgage is, nobody wants to be in a situation where they need to sell and end up in trouble with the negative equity malarkey, its a risk everyone takes when they get out a loan.
The other side of the coin, if the house prices continue, your 100% mortgage will only be about a 80 or 90% mortgage in a few years, if you know what I mean.

Hi

Very true Pricilla. I like your point of view..!! Hopefully the house prices will continue to rise....after we have bought..!!!!