Singing Pig

Hi guys,

Is it still possible to get 100% mortgages on the same day since Mortgage Express has pulled out. I'd like to purchase my first property but would ideally like to use as little of my money as possible. Is anyone aware of bridge financing that would loan you the money until the mortgage is approved? I know previously they would loan you the money for the day as Mortgage Express approved loans on the same day. What are you doing now to obtain the same results?

 Many thanks in advance!
 

Hi Zing

I think you'll find that there never were 100% sameday remortgages - only 85% ones.  Mortgage Express were the last lender to pull out of this product offering

There are many alternatives being offered at the moment but the robustness and legality of these is questionable.  The lenders have adopted a siege mentality and are bedded in for a long winter.  There have been many schemes proferred in recent weeks that have been closed down very quickly by lenders asking too many questions and changing their lending criteria.

Most of the schemes on offer at the moment seem to involve two kinds of jiggery-pokery.

1. The sudden appearance of a 15% deposit in your bank account which goes through the system and reverts back to the organiser post completion

2. The artificial inflation of the purchase price to give 15% equity

Different schemes seem to keep different people in the transaction in the dark (vendor, lender, either or both solicitors) and there is a lot of concern about both mortgage fraud and tax implications of some of the ones involving cashbacks.

Most of these schemes are in their very early days and so there aren't many cases that have actually completed.  Even where mortgage offers have been given, lenders will revoke these if they pick up on any funny business.

So before you go spending a lot on fees for one of these schemes, I would look for evidence of previous successful completions.

Open bridging might work for you but most lenders are now looking for 6 months ownership before remortgaging so the cost of holding an open bridge for that time could seriously eat into your cashflow and the profitability of the deal.

One of the safest routes at the moment is probably finding a JV partner willing to put in the 15% deposit in exchange of a percentage of the property and you doing all the management.