100% mortgage

[markwilding]

To me it makes sense to buy now if you're buying a home, not an investment.If you don't buy, you'll still need to rent.
Obviously if you're looking for a quick return, maybe buying property won't be the best way to do it.

[katy]

there are some properties that can be bought from the banks today at 100% mortgage and sold on at a profit within weeks......while the negatives are sitting at home being negative others are out there making money from property, even now.

also some people want a home to live in, long term, they are not concerned if the value is less a while later, they are in it for long term, to live in, to make a home...when they sell many years later it will be worth much more.

All works well long term but the fact is many marriages fail...even in Spain.

As for bargains...I know people in the business, do you think we have come down on the up train... selling them on in weeks...and you accuse me of telling porkies

[frank]

To me it makes sense to buy now if you're buying a home, not an investment.If you don't buy, you'll still need to rent.

It might possibly be a good time to buy (although I think it could get worse before it gets better) but if you're opting for a 100% mortgage with reduced payments for two years, that suggests it probably is all you can afford. That sounds a high risk strategy to me, especially once the normal repayments kick in, it only needs a small financial hiccup and they'll be struggling with repayments. I'm all for getting your own place, both my sons have many years ago, but those were different times and they both have secure employment. When the mortgage rates dropped, they both continued to pay the same so effectively the period of the loans have dropped dramatically, unlike now, the only way for mortgage rates is up!

[katy]

Mortgage rates have been rising for the past few months in Spain.

[julian]

"I know people in the business"

surprise, surprise !! you never let us down !!!


not everyone was given a house by their grandparents nor born with a silver spoon in their mouth, some have to get onto the property ladder in other ways.

[frank]

Mortgage rates have been rising for the past few months in Spain.

...and they still have some way to go!

[scampicat]

It was people having 100% and more mortgages that contributed to the recession in the first place. In a falling market you are straight into negative equity. Then if you have to sell you still owe the bank.

Seems crazy to me.

[markwilding]

It was people having 100% and more mortgages that contributed to the recession in the first place. In a falling market you are straight into negative equity. Then if you have to sell you still owe the bank.

Seems crazy to me.

Going into negative equity isn't a disaster provided you're in it for the long term.
People not being able to continue a mortgages are more likely to be for other reasons such as a changing work situation or rising interest rates but these same problems can happen if you don't take out a 100 percent mortgage.

[katy]

Anyone read the story about the single Mother in Torre del Mar. The bank was due to evict her this week. She bought the house about 4 years ago when she was working in a property agency. Now been out of work 2 years and cannot pay the mortgage. She paid 180,000 for the apartment, the bank are selling it for 50% less. Even after she has been evicted she will still owe the bank 87,000

Young couples also find those 2/2 places far too small when they have children. A Spanish friend's son bought one when they married, they now have 2 small children and the lack of space and storage is driving them crazy but they have been trying to sell for 3 years.

There is no such thing as "long term" in life now.

[markwilding]

The point I'm making is that the problem wasn't caused by a 100 per cent mortgage but the fact that she lost her job. Even if she had paid 30,000 euros deposit this woman would be down 90,000 Euros. the only difference being that she would owe the bank less.
If she hadn't lost her job, the pressure to sell would have been much less and she wouldn't have to sell at such a loss. She would have been able to hang on until the market improves.

[julian]

houses are also for living in..most here seem to be capable of only thinking about and talking about selling..not everyone buys a property to sell it, many want to make it into their home...living in a rented property is a very different experience to owning a house and making it into your home

[katy]

Yes I agree with that, but many young couple split, others are relocated by their companies.

Rent to buy seems a good idea from the ads. Provided that the sale price is right and not overloaded for the deal. Have seen some advertised at 185,000 in manilva and they are overpriced.

[julian]

"Yes I agree with that, but many young couple split"

well yes, but if you through life making decisions based on the presumption that everything will go wrong you´ll never do anything in life....sitting in a rocking chair in a dark room of a rented property with the curtains shut is not living.

the question was asked by someone whose son was thinking about getting a 100% mortgage, there was no mention of any future ex-partner.

[julian]

here is a bank offering a mortage whereby if you can only lose the house in case of not being able to meet the payments..they will not "chase you" for the rest of the debt

Bankinter ha lanzado una hipoteca que responde en caso de impago "exclusivamente" con la vivienda hipotecada y permitirá financiar hasta el 80% del valor de la propiedad, según ha informado la entidad financiera en un comunicado. Los intereses asociados al crédito alcanzan el 4% el primer año y 'Euribor + precio personalizado' los restantes, según la web de la entidad.

El nuevo producto, que será comercializado bajo el nombre de "Hipoteca sin más", tendrá un plazo de amortización de hasta 40 años, con unas condiciones económicas similares a las de otros productos hipotecarios, y con el habitual estudio de riesgo de la entidad.

De esta forma, al limitar la responsabilidad del cliente a la vivienda hipotecada, Bankinter permite que, de producirse impagos, se pueda saldar la deuda con la entrega de la casa hipotecada, por ejemplo, pactando la dación en pago.