A woman who bought her first home aged 21 for £72,000 has urged people not to make the same mistake she did - which left her with nothing. Becky Stevenson and her partner had saved more than £10,000 for a deposit, but were advised by their mortgage adviser to keep the cash and go for a 100% mortgage.
They took the advice and spent the £10,000 on a holiday to Mexico as well as white goods and furniture for the new home.
Becky, now 41, said: "We clearly said 'we have these savings' and they were like 'oh did you know…' kinda selling it as this amazing thing. We didn't know about all the impacts of that - not getting the best rates, high monthly payments.
"They did take advantage of our naivety, which is really sad... it was absolutely terrible. That's what I fear for first-time buyers now. Somehow they might be sold this dream and if it's the difference between getting on the property ladder than paying rent then great - I just want people to be aware of what it might mean for them."
Becky said thanks to not using a deposit the eight per cent interest rate saw them paying £600 a month for their mortgage, reports The Mirror. She said: "It was a significant amount of money per month for the home we had.
"If we had a deposit, it would have been significantly less. But they said we both had good jobs and could afford it, so it was sold to us that way.
"There was no independent advice. It was just you can afford it and 'look you have this money to use.'"
Then Becky's ex-partner had to take two years off work sick after being involved in a serious motorbike accident. They remortgaged and by the time they came to sell the house eight years later in 2011, they were left with almost nothing to show for it.
Becky said: "When we came to sell, we would have been much better off if we had a deal. There wasn't really anything in it. It covered the solicitor fees and then there was nothing left, we didn't make a profit."
She added: "Please get really solid, independent advice and really understand what that means for you and your situation because everyone's financial situation and life is different. Don't be afraid to ask questions - it's a specialist subject and sometimes we're made to feel like we should know all about it."
Rachel Springall, a finance expert at financial information website Moneyfacts, said: "It is imperative borrowers compare the overall true cost of a deal and attempt to save on the upfront cost if they have used up most of their savings on a deposit, legal fees, or moving costs."
It comes as Rightmove recently calculated that first-time buyers with a 15 per cent deposit to put down face paying nearly £200 per month more for a mortgage typically than they did a year ago.
