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)

[maggie2708]

i thought it depended on your earnings how much mortgage you are allowed.
me and my husband earn �36000 and are only allwed �78,000 100% mortgage with repayments of 750+ per month everybody must pay fees. stamp duty if the house is worth more than 150,000 and solicitors fees for the paperwork etc i am not very good at mortgages either hope i helped a little bit(too complicated hence the reason i rent :-) x

[CheekyChops]

�850 per week? Where do you work, I want a job!!

Seriously, I'm sure you mean �850 per month.

As has been said, an 100% mortgage will only be granted if the lender thinks that you can afford the repayments. Usually they will lend about 3.5 x salary. So that means (assuming you have no deposit) that you earn between you about 72K.

Also, you will still have to find money for the solicitors fees and stamp duty. And where will you get the money from to put a roof on and make it habitable?

[jedimistress]

And I'm not sure if a lender will give a mortgage for a derelict property? I could be wrong though.