How can I get on the property ladder without a deposit?

Posted on 5 March 2008

I've heard about the 125% mortgage being fazed out. I'm a first time buyer without a deposit and no chance of really raising one, however I want to get on the property ladder asap as I'm wasting my money on rent! What are the chances of still getting a 100% mortgage?

Thanks,

Rosie

Hi Rosie,

You can still get 100% mortgages, although you will have to make sure you can repay quite a bit of the capital in the first few years as it is unlikely that there will be much choice of them by the time you come to remortgage.  It is also likely that property will fall in value in the next year, putting you immediately into negative equity.

So whilst it is possible to find 100% mortgages, unless you have a very large income with money to spare each month to pay capital off with, you are signing up to a very high risk noose this year.  I would live small for a year or two, rent in a shared house if possible or stay with a relative, and save up a few hundred pounds a month as a deposit.

Category: First-time buyer

 

Answers provided in response to Ask Bea are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not neccessarily represent the views, positions, strategies or opinions of Charcol Limited. All comments are made in good faith, and neither Charcol Limited nor Bea will accept liability for them.

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