over 100% mortgage

Jul 30, 2005 59 Replies
J

Hi,



I am looking at borrowing 350,000 to buy a house. But I don't have any money for the deposit, nor for legal fees etc... I currently pay 1,600 per month in rent and would like to stop wasting money. I am a french national married with 2 children and we have lived in London for nearly 5 years and we intend to stay here... I earn 74K per year and have no repayment at the moment. Any suggesstion / help would be much appreciated as I could not find lender beyong 90% of the property value.



Cheers Jag


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T

thats because received wisdom is that prices are falling so they wont have any security at all. FWIW what sort of mortgage would 1,600 buy?

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R

Wrong question, perhaps. With a 74k income, it's likely he can easily afford much more than 1k6 a month on rent or mortgage, but with the attitude that rent=waste, perhaps he would be prepared to pay much more on ownership than on rent. Now how are we going to convince him that doing *that* would be a waste?

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J

Ideally would like to repay around the same as current rent (i.e 1,600) but really we would like to own our place. it is a pain not to be able to do what we like in this rented property!!

"R>

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M

Northern Rock or Mortgage Express.

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J

dont't think the issue but am managing an IT team for a financial company.

"mo" a crit dans le message de news: K snipped-for-privacy@giganews.com...

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R

Coventry and Northern Rock do over 100%, although God help you if you have to use Northern Rock.

Rob Graham

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M

just search for 105% mortgage, there are many, but bear in mind that interest is much higher. A realistic monthly for 350000 would be 3000 .

mrcheerful

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M

Depending on the repayment method. Interest only, even at a 6% rate, would be circa 1750 monthly.

There's still legal fees and stamp duty to be found though....

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D

"Matt Robertson" wrote in message news:6v0He.80066$ snipped-for-privacy@text.news.blueyonder.co.uk...

And instant Negative Equity - and depending on area/property chosen, this could last quite a few years.

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E

I would say go back to France where property is cheaper. Eric

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R

He hasn't saved any beans because he heard how expensive bean counters were.

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J

any more ideas on this?... "Jag" a crit dans le message de news:

42ebf690$0$15029$ snipped-for-privacy@news.free.fr...
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E

Says it all really. Eric

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J

Mortgage interest is also a waste of money, and it is likely that the interest on a £350,000 loan would be more than £1,600 per month. You also have things like buildings insurance to worry about.

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R

At 6% almost exactly twice that.

Rob Graham

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J

In message , Rob graham writes

350000 *.06/12 = 1750.
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