The return of the 100% mortgage?

28 September 2009

home_for_sale_The property ladder has had greased rungs of late, with pretty much anyone under a certain age unable to climb aboard. However, there may well be hope for them as we could be seeing a new version of the 100% mortgage.

First-time buyers can now start thinking about buying a house without fretting about stumping up a deposit, thanks to a shared-ownership scheme.

The Mansfield building society has teamed up with South Yorkshire Housing Association to offer buyers the chance to borrow up to 100% of their share of the purchase price.

You'll start off owning (up to) 60% of the property with the housing association retaining 40% and the buyer paying rent on it. Over time, buyers will be able to increase the share they own.

Of course, it's not ideal, but it will offer a lifeline to those desperate to get their hands on some deeds. Of course, there's no shortage of people who want to get on the property ladder, and should this model be a success then there's a strong possibility that others may well provide their own version.

The mortgage is a five-year fixed-rate at 5.99% with no arrangement fee.

Mansfield Building Society

TOPICS:   Banking   Investments   Mortgages


  • Cam
    Erm, surely this has been going on for some time now? i.e. housing associations offering part ownership and little or no deposit. See the gov website or any local council for info on this. Its been going on for a few years, not just in south yorkshire!!
  • Paul
    This scheme's been around for 2 years down here (hampshire) in various forms. We applied and got told the TOTAL loan available to us was £93k...enough for a 1 bed shithole. The best 'not completeley fucked up' property we could find was for £105k and that needed a LOT of work. We can't borrow this much, because apparently we can't afford it, despite the repayments being £300 a month LESS than we pay to rent our current place. Great scheme.
  • Arty F.
    Why would anybody want any sort of mortgage to buy some overpriced piece of shit that they are going to be paying off for the rest of their lives, never mind a 100% mortgage?
  • kev
    problem with these sort of schemes is that you can't sell them within the first 5 years or so, so if you're not happy with where you're living, or have neighbours from hell etc, you're stuck
  • Gunn
    Agree with Paul, the system is messed up, if they looked at peoples rent records, they'd see that most folk have to outlay more than a mortgage months worth of cash every month.
  • Paul
    @Arty, Unfortunately many people can't afford to save up a deposit and stay alive at the same time. @Kev, you CAN sell, they just get back whatever %age they lent you (wether the price goes up or down). However, you have to pay the loan back after 5 years (IE remortgage)
  • HomeOwner
    Old news.... been about for years They're a bit of a con IMO. The buyer isn't financially better off, and they only own % of the house so could easily be stung for charges if they decide to move before they own 100%.
  • craig
    these mortgages are bad bad bad... steer clear of any shared ownership schemes please people
  • Byron
    Hmmm - these schemes have been around for decades! My mum even had one when she was younger so first of all this is total none news! Regarding the schemes they can be very beneficial given the right situation. In fact some builders when you are buying new build will loan you 25% of the house value so you only have to mortgage 75%. This loan is repayable after ten years with no interest or rental payments in the mean time. Now the one problem here is that you have to pay back 25% of the market value at that time which could be more than you borrowed - but your house will also be worth more so your equity value will be greater in the property. It really can be a great option so don't give a biased opinion until you understand the ins n outs!
  • martin
    And at 5.99% are such a bargain with the base rate still at 0.5%.
  • master_chief
    This particular deal sounds awful. We've just purchased a house on the government sponsored Home Buy Direct scheme - well worth checking out!
  • Monkey_Boy
    Master_Chief, that's fine if you're a key worker. What if you have no deposit, no way of saving deposit (high rent) and a third of your wage goes to the ex? On paper, I'm loaded. In reality, I'm skint!
  • The L.
    [...] posted here: The return of the 100% mortgage? | BitterWallet Link 2 This Post!1. Click inside either code box2. Right-Click then Copy3. Paste the code into [...]
  • Master_Chief
    Monkey_Boy, the Home Buy Direct scheme is open to all first time buyers or in some cases those who have split from a partner and can't afford a mortgage. You don't need any deposit as I didn't have a penny to put down on mine.
    That's gotta be a made up name?
  • 100 M.
    Good to see the smaller building societies showing the big boys how its done. Time for people to get moving again.
  • Jay
    Everyone that's left comments here obviously knows nothing other than scare stories pushed around by the press about shared ownership. I bought SO 4 years ago, with NO ties, NO restrictions or anything. I have half mortgage, half rent, the total of both easily equals LESS than if i had a mortgage for the full value. I also bought off South Yorkshire Housing, the same association mentioned in this ad. So before you start shouting from the hilt that these schemes are scams, speak to those that it's helped and get a balanced opinion.
  • Remortgage
    great info liked it...
  • Remortgage
    Great post i liked it!
  • Joan P.
    Maybe a little off-topic but have any of you guys used or moneysavingexpert?
  • Sarah
    Erm, surely this has been going on for some time now? i.e. housing associations offering part ownership and little or no deposit. See the gov website or any local council for info on this. Its been going on for a few years, not just in south yorkshire!!

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