Nearly 40, rented all my previous homes current landlord wants to sell, tbh it’s time to move. Had a look online found some houses local that look perfect for what I need, driveway small garden, have arranged a viewing, what next? Am I stuffed with no savings?

Is it still the done thing to get a smaller mortgage and a loan for all th fees??

I’d imagine that you’d struggle to get a mortgage with no savings towards a deposit.
You might need to look at something like the Help to Buy scheme.

Probably possible but if you’ve managed to get to 40 with no savings in the bank then maybe it isn’t a brilliant plan. Work out how much you could save in year or a few years if you really tried then you can put a more realistic plan together

Never been a saver, spend what I earn, holidays new bikes etc…

Little chance without any savings.

You’d need to have at lease 5% of the purchase price to get a mortgage.

Book to go and see your bank/mortgage broker asap. You wont be able to place an offer on a house unless you have a mortgage offer in place.

Worth a try …..ask for a subprime mortgage and give your name as Mr Toxic. Good luck.

Answered your own question really “never been a saver”

spend what I earn, holidays new bikes etc…

I remember those days 😀

Having gone through the ‘new’ (more stringent?) process in the last couple of years myself:

1. You can’t take out a loan to cover deposit (nothing to stop you taking out a car loan well in advance, stashing the money in an ISA and therefore breaking any relationship between the 2 – wouldn’t recommend it though, if you can save, do that – NOW!)
2. They will look through 3 months of bank statements to check affordability.
3. They just need to see you have access to the deposit (to answer your “cash in the bank”), so if you are being ‘gifted’ an element, they will want a written letter (my lovely Dad gave me a few quid, and this was required – “no interest in property” etc)
4. Start saving now.
5. Aim for 10% deposit if you can.
6. Start saving now 🙂

Back in 2001 we used mrs_oab’s student loan as 5% deposit on £60k house.

I don’t think there are many £60k houses around today.
I don’t think there are any 100% mortgages out there today.
I don’t think your lack of saving will help…

Sell a couple of bikes? Could family help?

relocate?
http://www.liverpoolecho.co.uk/news/liverpool-news/homes-1-scheme-extended-liverpool-8923652

I bought my first house with a 5% deposit that me and the mrs scrabbled together from loans, credit cards and overdrafts. That was 15 years ago though and was almost mortgage free until my latest move

You’ll need a couple of grand for solicitors and other fees etc even if you didn’t need a deposit, which is be surprised if you could get a mortgage without one these days anyway

Thanks all, no family to help there up to there eyeballs in debt with homes and loans they have. Might be looking for somewhere else to rent if my landlord manages to sell the flat.

Get saving and sell stuff bikes car etc.

Yes, without cash in the bank.

You’ll probably need to own a bigger house than the one you’re planning on buying though

The sorts of products you need are out there, Clydesdale Bank for instance offer a 95% mortgage…whether they’ll give one to you is another question all together…

The reason the banks got into the sorts of issues they did is the reason you won’t get that sort of product easily. Most banks are offering 70-75% mortgages, and are looking for the rest from you.

If you spend everything every month, consider what you can afford if interest rates were to rise in the future. Sure it doesn’t look likely much at the moment, but things can suddenly change. Can you cope with a 5% interest, 10% even?

What if you had a sudden financial change, like loss of job or forced to take lower pay, or you have kids (or more kids)? Can you still afford the mortgage?

At 40, don’t leave it too long as you’re considered more of a risk for a full mortgage on the basis that you need 20 to 25 years to pay it off.

As for no money in the bank/savings, you’ll need money for fees, surveys etc, though these can be piled onto the mortgage but then you’ll be paying way more for those long term and monthly rate will be a little higher. You may also find the sale falls through / gazumped but you’ve had to pay up for some fees.

Aside from any of this though, what’s your credit rating like? Have you ever had a loan in the past or have or had credit cards and are they always paid off? Good credit history is good for getting a mortgage. If you’ve never had credit in the past or have bad credit rating then you’ll find it more difficult.

A way to help save?

p.s. I’m sure, selling bikes to fund a house is not an option. Never would be in my book, bikes first, house second 😀

You may remember the small matter of the global economy being brought to its knees in 2008 because too many people with no cash in the bank took out mortgages they couldn’t afford to pay back… and it’s still on its knees whatever propaganda various governments put out – that’s why interest rates are still at emergency levels…

IANA financial adviser but with a family history of too much debt and no savings yourself and a history of spending your spare cash on bikes and holidays you’d be ill-advised to be putting yourself into hundred’s of thousands of pounds worth of debt – and any lender who was willing to lend you that cash based on this history should have their banking licence taken off them… IMHO…

I assume if you’ve spent all your spare cash that you also have no pension?

If so, what you’re in dire need of is some proper financial advice from a qualified financial adviser. You need to change your financial habits sharpish: spend less, get your pension started and try and get a deposit together…

Also, worth asking your landlord why he’s selling – if he’s a BTLer and he’s selling because of the changes made to the regulation of BTL you may want to remember that he’s one of a few million who are in the same boat. Interest rates are looking likely to go up in the US next month and UK will have to follow suit soon enough. On the basis of these two things I would sit tight for now, keep renting and spend the next 5 years saving like mad for a deposit and the various fees you’ll need to pay if you buy, and see what happens to UK house prices…

Bikes and holidays are nice but a retirement in poverty aint…

Just because he hasn’t got savings doesn’t mean he can’t afford mortgage repayments.

We bought a new build house without any money in the bank, they were giving away deposits. That was 2007 mind. Was a little rocky for a while with negative equity but we are well into the black now. Getting on the ladder was the main aim, seems to have been worth it.

I’m paying £600 in rent, all other bills and yep i have a pension quite a good one at that and shares which at present aren’t worth much due to the retail fall over but they were free so have left them be will leave them alone until the recover to some value. Like most I left home at 17 rented since then. I have some cash each month spare but spent it on weekends fun be it biking in Wales or new bike bits, watching the football etc.. recently didn’t think much of it until nor. I could cut stuff out and save but would be looking at 2 years before I get the money I need, just wondered if there was another way and really don’t want to spend anymore money on renting deposits etc…

UBS forecast for UK house prices

I would spend the next few years cutting back on the spending then OP – there’s more than a few observers pointing out that UK house prices are well out of line with all historic measures – UBS makes an interesting read, and reading the responses of BTL landlords to Osbourne’s 2 attacks on BTL this year suggests that many are really quite angry as he’s busting their model entirely. Def worth finding out why your LL is selling…

Whether this will lead to a load of property coming on the market at prices for a quick sale, who knows, but certainly seems more likely that the overall momentum is changing now… BoE have serious concerns that UK housing will cause another crash, prime London volumes and prices are also down and a casual train journey through London shows a hell of a lot more flats going up than I’ve ever seen in 15 years living here… You may not live in London but as London slows or drops, I suspect the momentum elsewhere will follow…

I’m older and still renting

No way of saving, even if I wanted to

I’m not that keen on renting, but I know the current landlord, which makes things less stressful

I’m 35 and stuck in rented accommodation. Similar situation to you, all spare cash after bills/pension/student loan etc is spent on bikes and fun stuff. I do manage to put £50-100 away every month but that gets eaten up when Car tax/insurance/TV license/Xmas comes along so no real hope of saving a deposit up by myself. Would need to get a pot of £40-50k together to afford a place with the maximum mortgage amount I could get. Resigned to waiting for either a rich maiden to fall for me (no hope) or my parents to pop it 😥 If I went without everything to save like crazy it would take 10 years to get a deposit together, by which time I’ll be too old to get a full mortgage easily so I’m just bobbing along enjoying time on the bike but not taking out any loans/finance so that if I do inherit any cash I’m good to go. Resigned to renting my whole life though 😥

You’ll need 10%+ deposit to even be considered for most mortgages, without an offer of one you will be laughed out of the sales office.

What if he could get a buy to let?

He could then rent other rooms while he is a live in landlord?

Still think you need a deposit though. I think I got away with a 30k deposit year ago.

If I was you I would try to get a cheap place and pay it off ASAP and then buy to let with cash. Mortgage the second home and repeat.

I did it and got away with it while at Uni lol.

I think I got away with a 30k deposit year ago.

Where is the OP going to get a £30k deposit from?

I did it and got away with it while at Uni lol.

A little help from your parents perhaps? otherwise it doesn’t add up.

I’m afraid that the bottom line is you really needed to be saving up over the past couple of decades. You can’t expect a stranger to just drop a house in your lap after you’ve spunked all your cash on toys. OTOH, a lot of wealthy parents could help their children out if they were a bit more forward-thinking. Lots of middle-aged (or older) people have inherited a house and more from their parents, that they have no real need or use for. Gifts are exempt from IHT after 7 years…

Of course I realise it’s difficult (impossible) for those who genuinely have no spare cash or property equity in the family.

Have a look at some of the online affordability calculators.
If you earn £30k and have £300pm on fixed outgoings you could get around £135k mortgage. Without knowing where you are in the country it’s hard to say of this is a realistic amount to get you a place to live.
How affordable anything is depends on if you are willing to change your lifestyle. Not going on any trips for a couple of years, catching overtime (if possible) or quitting drinking can help especially if you use that savings isa to get something extra.
You can always go speak to a bank or building society loans advisor and see what options are open to you now and how to improve them if required

If you can get somewhere renting out a spare room is not a bad idea to help against rate rises as long as you don’t spunk it away.

Yes you can through companies like this…..

http://artisanhomes.co.uk/