Hi,
I was just wondering if anyone knew of any places that will lend you up to 110% on a mortgage?. I currently earn 15k a year basic with no guaranteed bonus and my partner earns 5k.
The most we have been offered is 67k over 30 years from the Halifax, and the lowest is £57,500 from Northern Rock both of theese were based on 90 or 95% I think , I am ideally looking to borrow around £80k . Does anybody know a pratical way for this to happen? and is it viable to take out an unsecured loan alongside the property and the remortgage to consolidate later?
Thanks for your help in advance. Wizzz

There are companies which will lend you more, but not more than the value of the property, which is what you imply by 110%.

When they say 90% & 95% they mean a percentage of the value of the property. So with £67,000 mortgage at 95% you can look at a £70,500 house.

You want £80,000, which I assume is the price of the property. You have to look carefully at your finances and decide what is the maximum that you can afford to repay monthly.
The truth is that you do not have a lot to play with but lenders are out there who will sign you up and repossess the house when you cannot maintain the payments.
An unsecured loan to make up your balance is going to cost you heavily in repayments (high interest rate) if you can get it.

My honest advice is for you to buy a house for which you can afford the repayments. As the capital value of the house rises, you will be able to sell at a profit and improve your quality of housing that way.


Edit: I've just seen from an earlier post (http://www.sheffieldforum.co.uk/showthread.php?postid=322962#post322962) that you worked for a mortgage company last year, so you know all this anyway!
What's going on?

I work for Abbey at the Debt management centre in Sheffield near Meadowhall!!

From my experience and Abbey's lending strategy DO NOT BITE OFF MORE THAN YOU CAN CHEW! Especially when it comes down to secured lending and your home is at risk etc etc

It does not matter how much equity you may have in the property...if you cannot keep up repayments (or a reasonable arrangement to clear arrears in full) your home will be
AT RISK!!

I would not recommend any mortgage exceeding the value of your home/income!!

:thumbsup:

Originally posted by cgksheff


Edit: I've just seen from an earlier post (http://www.sheffieldforum.co.uk/showthread.php?postid=322962#post322962) that you worked for a mortgage company last year, so you know all this anyway!
What's going on?

Apparently there's a place called Earth Mortgages on Hellaby Industrial Estate. I believe they specialize in morgages for people who can't get what they want from a high street bank...

Hmmmm.... little bit worrying when someone who sells mortgages is asking for advice on mortgages. Maybe i should start a thread to see if anyone knows about where to buy beer from :P

-PK-

Hi,
Sorry about the confusion with me working for earth mortgages :). Earth mainly do remortgages as opposed to new ones, and although they do new mortgages they are, as mentioned, for people with adverse credit. Since I have a clean credit history they are not able to offer what I would want.
I work on the other end of the scale at earth, I basically generate the interest, this means I know loads about rate, types,benefits and risks. But not a lot about any company who will offer more than what the house is worth.

I heard northern rock did it but couldn't find anything on the website. And their are companies out there who will lend more than the equity you have in your house. I just want that to be a with a prime lender as opposed to sub-prime.

No-one at work could really help so I wondered if there was anybody here who knew where it was possible. I should have mentioned the fact that I worked for a mortgage company before, sorry.

Having experienced the nasty end of debt after I was ill prepared for some of the slings and arrows that life occasionally throws up, I'd be VERY careful about deliberately getting in to negative equity!

I mean - you say you're aware of risk and such but do you genuinely think that borrowing more than 100% of the value of a property when the market is likely to slip is a good move?

It's none of my business - I guess that after my own experiences I'm now very conservative and risk averse in terms of debt - but please be VERY careful.

Also, I know that some lenders take a dim view of anyone getting a mortgage and then borrowing more on an unsecured loan to get the deposit or support the mortgage payments.

Joe

If you're sure you can afford it (and it's a good idea to speak to at least two Independent Financial Advisors before taking on any kind of debt) then Northern Rock did do a 120% mortgage. It's done in two parts - a secured loan up to 95% of the property value and then the rest (to make up to 120% of the value of the property) as an unsecured personal loan.
We were worried about the whole "straight into negative equity" thing, but as the prices have risen, we're actually OK now. It's a useful product if, like us at the time, we had minimal savings and no parental/other help.
It's a very big decision though, and it could have gone the other way for us. We took the gamble, knowing if worst comes to worst, we were prepared to have to sell up.
Northen Rock have been good with us, and there's an office in town if we ever need to go and physically see them - unlike some of the smaller, telephone-only providers.

Bottom line, it's do-able but (and this can't be stressed enough) get independent, professional advice on the best product for your circumstances. Preferably at least two opinions.

Scottish Widows (110%) are mentioned here. (http://msn.whatmortgageonline.co.uk/do_it.htm) but they would appear to restrict its availablity to certain professions.

Northern Rock is also mentioned and their's is a combination of secured and unsecured. ( as hotphil has explained above while I was typing!)

Please think hard before you immerse yourself in debt.

If you mortgage yourself to the hilt you only need a small increase in the interest rate to make a huge difference in your outgoings. You should never leave yourself in a position where you can't financially cover the odd domestic emergency, which believe me will arise from time to time.

Play safe and only borrow within your means. Financial instititutions who will lend you more than you can realistically cover are irresponsible money grabbers who, at the end
of the day couldn't give a hoot whether your HOME is repossessed or not.

as the market is no longer rising quickly, why not start putting aside every month the amount you would be paying for a 95% mortgage (one of the already offered ones maybe).
Do this religiously, no, ups gone over budget i'll borrow a bit back.
This has two purposes, you find out exactly how paying that mortgage will affect your finances. 2ndly, you are saving a deposit, which will help you stretch to a more expensive house.

Finally, remember that the mortgage is only the first of the bills. Add life assurance, house insurance, council tax, water/gas/electricity on top of that (if you don't already pay these for yourselves) and it's probably 50% again ontop of the mortgage.