Question Re: The 100% Mortgages

M

melissa

Guest
With the new 100% mortgages becoming available to first time buyers do we still need the full amount of deposit for the house. ie If a house costs 180000, how much do we need to give up front in order to be able to apply for the 100% mortgage.
 
i have spoken to first active and got approved for the 100% mortgage. Basically you will pay your booking deposit, in some cases the balance of the 10% deposit and then when you draw down your mortgage cheque, they will give you the purchase price of the house, so in your case 180,000.
 
I guess its still not helping first time buyers then, as we still have to slave away and try save that dreaded deposit.
 
melissa said:
I guess its still not helping first time buyers then, as we still have to slave away and try save that dreaded deposit.
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the difference here is you can borrow the deposit (without try to hide that you did it)... and you will get it back... so as long as you close quickly it shouldn't be a problem...
 
jhegarty said:
the difference here is you can borrow the deposit (without try to hide that you did it)... and you will get it back... so as long as you close quickly it shouldn't be a problem...
Click to expand...

Except for when you're buying a new house off plan, and wait for up to two years between paying the deposit and moving in.
 
I'd say most of the mortgage lenders giving 100% mortgage will let you draw down on signing the contracts. That way you will not have to pay the higher ineterest rates on personal borrowing!

Regards,
Anthony
anthony@advicefirst.ie
 
No lender will allow you draw down any part of a mortgage (100% or otherwise) until the property title has passed into your name. In the case of a self-build house or one requiring stage payments, this will happen when you complete the purchase of the site. In all other cases, title will only pass to you on the completion of the entire purchase.

Liam D Ferguson
www.yourfirstcastle.com
 
Hello,


You could speak to the builder about your situation, most builders look for a 3K booking deposit, and a further 5K on signing contracts. Try a family member for a loan,
 
LDFerguson said:
No lender will allow you draw down any part of a mortgage (100% or otherwise) until the property title has passed into your name.
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Got a 100% mortgage from BoI in 2002 and they allowed me to draw down the deposit (less the €5,000 booking deposit), followed by the balance on signing.
 
Are the 100% Mortgages likely to increase prices by making houses more affordable-i.e easier to get the money together.Will this negate the SSIA boom next year as people will now not have to wait for their SSIA for the deposit?Any one any opinions.

Rgds Derek
 
melissa said:
I guess its still not helping first time buyers then, as we still have to slave away and try save that dreaded deposit.
Click to expand...

I have to agree with Melissa. The advertisment of First Active's 100% mortgage leads you to believe that you don't need to have your deposit and 10% saved as they will be giving it to you. Unfortunately this is not the case. Just read on their website that you have to have your booking deposit and your 10% and will only get this back when you draw down the mortgage. Myself and partner are both ftb and have seen the house that we would have liked to have but as we don't have enough of a deposit saved and don't have any ways of getting it as a loan, it looks as if we will miss out on our dream house. In my opinion FTB are not really benefiting at all.
 
Just wondering could you not get a personal loan for the booking deposit which you would have no problem securing once you've been approved for a 100% mortgage?I know it mightn't be as straight forward as you lwant but you would get your first home without having to continue to save.With the possibilty of 120% Mortgages the price may increase so much that you'll never have the deposit saved unless you get a windfall.
 

I didn't really want to get a personal loan from a bank because I thought that this might show up before I was able to draw down the mortgage. I don't have enough saved in the Credit Union to borrow from but I am going to see a broker on Friday and hopefully he can advise of something. It's just a little annoying that they are advertising that you don't need a deposit when in fact you do.
 
I don't think you should have a problem,as my brother who is buying at present is in a similar situation,they loaned him the deposit only on the condition that when he received the mortgage he would pay back same,not sure of all the details or how they ensure he pays back the loan asap.
 

Oh that's interesting. Do you mind me asking where he borrowed it from as in was it from the bank or was it from the mortgage company??
 
You can borrow your deposit from any bank, building society, credit union or whoever will give it to you. Bring your approval for an 100% mortgage with you and be completely upfront with them about it. The mortgage lender will have no problem with your temporarily borrowing the booking deposit - they'll just insist that the short-term loan is cleared from the mortgage chaque.

Liam D Ferguson
www.yourfirstcastle.com
 

Thanks Liam for this advice. I'll keep that in mind. It does help to know that there is ways and means around it. I'm a little more happy now!!!!
 
Hi Orles

when a formal loan offer is issued to yourself and your solicitor certain conditions are listed which need to be complied with before the loan cheque can be issued

you can arrange a personal loan with your bank for the deposit and then a condition is listed on your mortgage offer to repay loan XYZ when the cheque issues, your solicitor undertakes to do this

regards
Deirdre L
leonard@rea.ie
 
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