Mortgage advice needed please!?

Applied for a mortgage today and was told that i'd get a 100% mortgage for Â£54,000. I live in Edinburgh and that wouldn't buy anything here. Huge waiting list for a council house - i already applied and was told in no uncertain terms, no way would i get one. I'm paying Â£500 a month in rent. Have i just got to continue like this for the next 30 years, or do i have any other options. I'm single and although i love my job, it's not very well paid. Any advice would be greatly appreciated thanks. Feeling a bit upset tonight :-(
Additional Details
It was through an independent mortgage advisor that i got this quote.

Go for the 100%
I'm sure you are better off paying Â£500 monthly towards your own mortgage.
Try and talk to different brokers and go for the best rate. You can even talk to different banks mortgage advicers but no matter how bad your credit history is,as long as you are able to get mortgage offer, you wont be paying Â£500 a month on Â£54,000 for like 25yrs mortgage.
I'm not a pro in this field but I recently bought a flat for like Â£100k and my repayment is around Â£500 a month and it'll be less than that suppose i want to go for interest only.
Go for it if you know you can afford paying the mortgage.
Good luck

Firstly, please ignore James T's comment about self certification - you will only be able to borrow more if you lie about your income which is mortgage fraud.

In the market at the moment there are relatively few lenders that will offer you a 100% loan. Up until a few months ago the only real option was du-du-duh - Northern Rock - however more have recently joined the list.

As with all things in life you don't get anything for nothing and by giving you a 100% loan the banks are taking a large risk. Therefore, they will generally lend you a little bit less and at a higher rate of interest.

You haven't said how much you earn however this is the most important thing when looking at how much you can borrow. Please also note that any loans or credit cards that you have outstanding are also going to be taken into consideration.

Some lenders will offer 100% deals but only for people in a certain "safe profession". These might be doctors, lawyers etc.

If your credit rating isn't good, then at the moment in the UK it is going to be very difficult to get a 100% mortgage (in fact, depending on the severity of your credit rating it will probably be impossible). This is because thanks to the recent credit crunch, the lenders that used to offer 100% adverse credit mortgages have deemed them to be too high risk and withdrawn their products.

The best thing you can do is speak to another adviser. There is a possibility that they will come up with a different option (although an adviser can call themselves independent, they may only be tied to a limited number of banks - Countrywide, a broker mentioned above is an example of this - I think they are tied to 7 banks). You need to make sure that whoever you speak to is a "whole of market" adviser - just ask them upfront - they have to tell you.

Alternatively you can look through the banks that offer 100% mortgages yourself.

Abbey
Alliance and Leicester (who offer good income multiples)
Lloyds TSB Scotland (C&G if in England)
Birmingham Midshires (through a broker)
Mortgage Express
Northern Rock (good income multiples but expensive)
Royal Bank of Scotland

If you meet the criteria for a professional mortgage:

Standard Life
Scottish Widows
Bristol and West

If you are going to get a 100% mortgage, you also need to understand that there are certain types of property that you will not be able to buy.

Steer clear of:
high rise blocks
concrete blocks
properties above shops or retaurants
studio flats (although Mortgage Express may do them if they have a floor area above 30 square meters - speak to your broker about this)

Another option as mentioned above is to look at shared ownership properties. Speak to Alliance and Leicester and Nationwide about this. This is when you buy a percentage of the property from a housing association and then rent the remainder. Its a good option to get on the ladder but you have to remember that you are still paying a proportion of rent.

Depending on your job you may be eligable for a Key Worker Loan. This is set up by your local authority for people who do key but traditionally lower paid jobs in the public sector eg. teachers, nurses etc.

The loan they will lend will depend on your situation and the your local authority but it can be as much as 50k But again, speak to a broker to get more information about this.

Good luck with it all and please don't be too disappointed if another broker tells you the same thing. Look on the bright side - at least you won't be tied down to a mortgage!

Keep renting. They say its a good time to buy today, but guess what? it will be better tomorrow and so on. prices will continue to fall, wait until end of 08 or mid 09. Read the link below, some good info. Most of the people saying it's a good time to buy are.....DRUM ROLL PLEASE...........REALTURDS!

Continue to improve your credit, pay down any and all debt you have, save as much money as possible. In mid 2009 you should be king of the hill as far as purchasing power goes with the best available rate and terms (based on good credit and saved money). The next year or so is going to be a bloodbath of people that have bought homes from mid 2005 and on. Sit back, relax and watch the show for now, you have time.

A lot people giving advice are also looking to give you a loan, if they are not local to you and you canâ€™t get to them in person within 1 hour donâ€™t fall for it. They say they are licensed in all 50 states, what does that mean? Which state do you have to look in first if something goes wrong? KEEP IT LOCAL, STAY SAFE.

Remember Buddha's advice:
"Believe nothing, no matter where you read it or who has said it, not even if I have said it, unless it agrees with your own reason and your own common sense." You are the only "expert" you can trust: All brokers, and every other loan officer guru giving advice here with a .com or contact me at the end is "selling" you something. Don't buy "it."

Have you considered shared equity schemes where you buy a % and rent the rest, gradually increasing the share you own? How about Housing Associations? Your local council may have details of local shared equity schemes.

Try another mortgage lender, they have all sorts of different deals and offers. We used a countrywide mortgage advisor who compared them all and got us the best deal. Good luck.

if you have a 15 percent deposit you can self certify. that is to say you are showing the lender youcan save and they will have a good lump of equity and then you can borrow more, check it out with a financial adviser. the other way is to go to an independant mortgage advisor they can search the whole market but be where the more searches you do effects your credit rating and therefore your chances of getting a mortgage.

If you are a key worker there are schemes around.
Or can you buy a place with a friend,it doesn't have to be forever,in a few years time one or the other could buy the other out,but at least you will be on that 'ladder'.

good luck

You'll have to increase your capital and the best way to do that is invest in property.

You could buy a smaller flat somewhere else and lease that out.

The rent paid usually covers the mortgage costs and any extra income you have can go into paying off that mortgage.

That way, you'll be on the property ladder and if you want to buy a house in a few years, you can sell the flat for profit and afford a nicer place for yourself.

You could try one of those where you buy half the house and rent the other, but there are problems trying to sell on sometimes.
or you could share a mortgage - with a friend - but then they may want to move on or marry and move out.
Apart from that I cant think of anything.

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