95% mortgages are back in fashion. After the 2008 crash, they almost completely vanished, with only a handful being available. But in mid-2017, there are now nearly 300 different deals to choose from. That's good news if you are a first-time buyer, or if you need to trade up to a larger house. Here are some points you need to watch out for. 95% of the value, not the price Say you have an … [Read more...]
Articles about Mortgages
Mortgages are a "priority debt". If you are having difficulty paying the mortgage you need to take debt advice as soon as possible - the earlier you do this, the more options you are likely to have.
These pages list all Debt Camel articles about mortgages in date order. If you would prefer to see the most popular articles grouped by theme, looking at "problems getting a Mortgage", "problems if you already have a mortgage" and "interest rates", then look at the Mortgages and Debt page.
Will very old debts stop me getting a mortgage?
A reader asked: My husband is now 33. When he was 18-20 he was a silly boy and got offered credit cards and loans from everywhere and he took them. Unfortunately he was ran up a £7K debt that he couldn't afford to pay back. He's obviously learned from his mistakes and has a good job, good income, no further debts or credit loans. Will his debt from his youth still affect him? His credit score is … [Read more...]
Interest only mortgages and debt advice
The Council for Mortgage Lenders(CML) has recently provided an update on how the stock of existing interest only mortgages is changing. In 2012 lenders increased their efforts to make contact with the holders of interest only (IO) mortgage, aiming to ensure that as many borrowers as possible can repay the mortgage at the end of the term. So now in 2106 we can see whether this is working. How much … [Read more...]
Consolidate debt before getting a mortgage?
A reader asked: "We went to see a mortgage adviser to check if we qualify for a mortgage. We are first time buyers, me and my husband have 4 credit cards each and loans. Because we have a lot of debt, he advised us to go to our respective banks for debt consolidation by taking up a loan each to make one payment on all our debts. He said that was the best option for now. Also in that way we … [Read more...]
Save a house deposit or pay off debt?
A reader asked: "A friend said not to pay my defaulted debts off but save money towards a deposit for a mortgage - is this a good idea?" It's often unwise to rely on friends for debt advice. They may be guessing, their situation may have been quite different from yours, or they may be assuming what happened to them years ago is still useful today... they may know nothing about the current … [Read more...]
Right to Buy – will debts stop you?
A reader asked: I moved in with my parents into their council house several years ago and we are looking into the right to buy scheme. We received the paperwork and it stated that you are not entitled to the right to buy if you owe money to creditors. Five years ago I lost my job and had a relationship breakup and unfortunately got into debt. Two accounts were defaulted and I went into a payment … [Read more...]
Can I get a mortgage with recent defaults?
A reader asked: My partner and I have a combined income of £54,000, We have a deposit of £20,000 (inheritance) and are looking to become first time buyers in a new build property at a price of £210,000. We have defaulted debts that are being paid off, and previous history of payday loans from over 2 years ago from a time when our financial situation was much more difficult. The defaults are … [Read more...]
Will very low mortgage repossessions continue?
The Council for Mortgage Lenders latest statistics for July-September 2015 showed repossessions stable, with 2,500 properties taken into possession in the third quarter, the same number as in the second quarter, and 50% down on the 5,000 reported in the third quarter of 2014. The quarterly repossession rate is at its lowest level since the CML's quarterly records began: Repossessions … [Read more...]
Are 35 or 40 year mortgages a good idea?
Most mortgages used to be 25 years, unless you were nearing retirement when they would be shorter. But new lending figures from the Halifax in January 2016 showed that a quarter of of first time buyers took out a 35-year mortgage in 2015. 40 year mortgages are no longer very rare. But are these a good idea for the borrower? Why is this happening? Long mortgages have lower monthly payments … [Read more...]
Options if you have an interest-only mortgage
The number of people with interest only mortgages fell by about a third between 2012 and 2015. However there are still more than one and a half million interest only mortgages. More worryingly, research from Citizens Advice has found that nearly a million people with interest-only mortgages don't have a plan for how to repay it. If you are one of them, you are risking having to sell your house or … [Read more...]