100% Mortgage Advice

[colettemarie]

I have lived in the same town all of my life, only last week did i drive past the house i have fell in love with. I cant believe i've never noticed it before! My fiance and i have always strongly thought about having a renovation project; buying the plot of land and invest all you have into it, to make it yours forever, but one has never shown up around our area.

The house is virtually derelict. It has no roof & has been burnt out by kids at one point. It has a lot of land to the front of it.

My aunt reckons it will probably sell for around �180,000 but needs LOADS of work doing to it. My dad is a builder and we have loads of local tradesmen in our town.

When it snowed recently apparently a lot of water gathered in front of the house so we would definately need to do something drainage wise.

It would devastate me to see a developer get their hands on it and spoil its character!

I'm pretty sure the owner has no intention to do anything with it and would sell.

My question is: Do i risk everything and try my best to get it? i have thought about getting a 100% mortgage but dont really understand what is involved! I have looked on the internet but there are loads of different answers to my question and it is confusing me even more.

What is involved? Would the mortgage company just hand over �180,000 like that. No deposit, no fee's etc? and then i start repying on the Mortgage at around �850.00 per week?

(We are also first time buyers)

[bednobs]

you ned to go and see a mortgage advisor forst, to see how much you are able to borrow.

if the house is derelict, the mortgage company probably wouldnt give you a mortgage because they wouldnt be able to sell it for anything if you defaulted. Also, if you borrow the money to male it habitable, how are you going to pay to make it liveable?

[colettemarie]

Basically, i just want to buy the property now (the derelict house and the land). My partner is currently not working and i was thinking of getting the mortgage with my mum.

Realistically, i can afford to pay anything up to �900.00 per month to cover the mortgage. When my fiance qualifies and starts working again, we will then be able to afford to start paying for the work to be done to the house. Renovations and decorating.

We are currently living in a property rent free and will be for the next 18 months (by then my partner will be earning)

I am starting to save for a deposit now but i have been out of work for the past month due to sudden redundancy (i had only been working there for 5 months so am not entitled to anything)

After paying out debts accrued in the month i'd been out of work, i have around �200.00 saved. I anticipate to save �900.00 per month ongoing as a deposit. Obviously, this wouldnt be enough money to offer as a deposit yet!

My problem is that if the vendor turned around tomorrow and puts the property on sale or if anyone else was to approach him, that i would lose out on the property.

[colettemarie]

Also, you mentioned about what would happen if the property defaulted...

If i was to buy the property for �180,000, which i believe to have been the going rate for it, then if i defaulted couldnt the mortgage lender re-sell the property for �180,000 to someone else? (Maybe even more what with interest rates going up!)

[bednobs]

sorry, what i meant to say is if you borrow the money to buy the house, how will you afford yo make it habitable. Also 850 a week is very expensive - nearly 4000 a month - if you have that money, save up for a few months first and put a deposit down.
you can get a 100% mortgage, in fact, i borrowed the legal fees and stamp duty for mu forst place, meaning i actually had a 104% mortgage!

[colettemarie]

Sorry, i meant per month!

So, personally, do you reccommend having a 100% mortgage?

[bednobs]

nothing wrong with it. However, if you do have a depsit you will get a better rate
i had mine from northern rock, and they lend you part secured, and part unsecured, so really its like having a 90% mortgage

[colettemarie]

thanks for your help! : )