Can you buy property with NO deposit

A call came into the office in Wolverhampton, it was from a potential first time buyer here’s what they said –

“I want to get out of renting and buy my first property. I am nearly 30 and it seems to be nearly impossible, despite me having a good job and a decent salary”. I said okay lets discuss your circumstances and took down some basic information to build up a picture of their situation. They then said “can I have one of those 100% mortgages I have heard about because I want to keep my savings for a new car”. I replied you will need your parents to place a 10% deposit into a savings account tied to the particular bank who is offering the mortgage product, they were talking about for 3 years. To which they replied my parents have not got that sort of money to put into a savings account. Now the client did not proceed with this mortgage product but they have since applied for a mortgage with a 10% deposit of their own. What I say to clients is if you have 10% deposit then you will have a wider choice of lenders and stand a stronger chance of obtaining your dream home in Wolverhampton.

Most people want to buy their own home, and as a country we have a sense of pride in our homes and our clients have invested in property in the West Midlands for many years. In the long term, house prices should go up in line with average earnings. This includes inflation so, overall, we should expect a rise of 3 to 4 per cent approximately. This is probably the same or more than your mortgage’s interest rate, and means your capital gain on the property should match or exceed your mortgage costs. Some will say “this is a lot better than renting”. But renting is the best route for certain individuals depending, on their job and lifestyle and buying a home is not for everyone.

If you need to discuss your mortgage options then call me Paul on 01902 213201

 

 

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