RobsyUK

iTrader: (2)

I've been googling and couldn't find anywhere doing 95% morgages...

Finding 10% deposit would have made me put some on a credit card - I really didn't want to do this to find £30k but managed to find a 95% one!!!
It helps massivly as I only need to find £15k which we have.

So if your like me and you are selling your first house - meaning you haven't paid much off the morgage then try www.skipton.co.uk

I am not getting any commison or anything I just want to help anyone out who needs it. Hurry though as they have said they won't be doing them for long - my application is valid for 6months !!!

Hope I have helped someone.

Coffin Dodger

6% interest though!

And yes as you have found out the days of 95% mortgages (could get 100% once!) have pretty much ended, but is it a bad thing? Encouraging first time buyer to have a bit of financial responsibility and to save like mad to get a 10% deposit shows commitment so you would hope they would carry on paying their mortgage after they got it and the banking system wouldn't have gotten to the state it was in when the sh*t hit the fan.

There will always be the niche lenders as well I guess.

Myles

iTrader: (40)

Do you remember the 105/110% mortgage where you could buy furniture etc. with the extra 5/10%? I was offered one, but I'm not paying for a suite over 25 years!! I got a 95% mortgage, and the deposit was £1900!!

mamoon2

If you can't afford the 10% deposit, I would suggest not buying a £300,000 house.

Interest rate of 6% I'm on 2.99%.

What will you do when the base rate goes up 2% over the next two years and your mortgage payments rise to £2225.00 per month?

Even at 6% your payments will be £1860 per month

Gear Head

iTrader: (2)

****, I thoughy my mortgage was steep at £900 a month!

pigSTi

iTrader: (5)

**** that, not worth it. Although "owning" your own home has many positives, I always say as well that having a mortgage really isn't the be all and end all that we lead ourselves to believe.

My advice is that it really isn't, so don't rush take your time. You will get there one day come what may.
Think of iron pyrite - Fools Gold - that is what mortgages can be.

Relax, stop and smell the roses along the way

jef

iTrader: (13)

i got 110% mortgage 5 years ago

up here me and mrs got offered upto 150k.

even then i knew payinh back at that wouldve fcked us. so i bought my place for 68k in a "lesser" area, fairly large house ex council house.

im now over paying my mortage by £100 per month.

last thing id ever want to do is cripple myself for a big shiney house and nothing else, rather have my mediocre place, live a bit and hav a toy (scooby).

in these times, with so many just being able to get buy on what they get - saving isnt always an option

jef

iTrader: (13)

Altho totally agree with the sentiment of paying a couch back over 25 years isnt too appealing, and effectivley thats what im doing.

altho we didnt use all funds available to us - of the extra avaialble we used around 8%

but im so glad i did what i did, as it was my ONLY way onto the property ladder, thats now fallen down lol. without the option i wouldve never been able to buy a place

Steve_PPP

iTrader: (3)

Have to agree with this!

And if you can't afford the 10% deposit, why are you talking about when you should book your holiday to Jamaica in the Italy's going boom thread

FlightMan

Helped someone? Anyone following your path risks a life time of debt repayment to the banksters.

As said previously, if you can't afford a 10% deposit, you can't afford the house. Good luck, you'll need it.

rossyboy

iTrader: (8)

100% mortgages aren't too bad when the market is consistently rising and you have control of your finances.

Just about the only financially sensible thing I've done was get one to buy a flat and then sold it just off the peak of the market on its way down.

Obviously they had a direct influence on the house prices themselves though.

SamUK

iTrader: (1)

i had to put down 30% to get a mortgage 1 year back! that was painfull! lowest deposit was 25% that they would accept.. (first house)

got a rate of 3.5% though...i had to keep repayments low so that i could still afford to pay should i be out of a job.

£450 per month - interest only..

i think the government is doing a deal for new buyers, bit like the part ownership but it is called something else and works differently..its where the loan you the money up to 25%, nothing to payback until you sell the house.

stilover

If you can't afford a 10% deposit, you shouldn't be buying any house.

Nato

My wife and I are currently saving for a deposit for our first house. We are in a fairly privileged position as we currently live above our place of work with no bills or rent. Even with this arrangement we've worked out that it will take us around another five years to have a deposit on a modest house (something to get on the ladder, and move into when our career with the brewery ends). We wouldn't dream of taking a 100% or even 95% mortgage in the current climate, however keen we are to get onto the ladder. Starting small is definitely the way to go I think. As previously stated, I'd rather have a smaller house, and money to live a bit with, than spend all of my money on bills and my mortgage.

stilover

McDonald's have flats above there restaurants? Really?

Nato

McDonald's was 12 years ago, I've moved up in the world since then

Chip

Very sensible , if only a lot of other people took the same view.

Chip

PaulC72

If you feel it is the right thing to do you just have to do it, providing you are happy you can make any future repayments especially if the rates rise, and they will in the not so near future.

chocolate_o_brian

iTrader: (22)

When I bought my house at 20 about 6 1/2 years ago, I easily got a £75k mortgage when earning £15k a year at a warehouse job - scary thinking to be honest how easy it was. I got 97% with my mum (who I bought the house off) paying my 3% as a gift (21st birthday present).

Never regretted getting on the property ladder young and currently the mortgage is £85k after sorting some debts out in 2007. I overpay a little every month and it provides a safe home for my young family over renting and moving about. Without the hand from my mother I hazard I'd never have saved 10/15/20% up. The positive being I got on the ladder when it was easier, now it's a bitch even if you have genuine means to afford your own property!

RobsyUK

iTrader: (2)

We can afford a £235,000 house and we havebeen approved £388,000by the Bank.
and we don't actually need a 4 bed detached house with just 2 of us.

We have decided that rather then buy a 3 Bed we might aswell buy our 'final' house now to save pissibg money on stamp duty etc ..

we arn't first tine buyers I just think that if anyone out there like me who wants the extra few K's for a holiday & home improvements. We know the house needs fences - it has bushes as a divide but we have rabbits.

RobsyUK

iTrader: (2)

I can't edit posts via my phone but just so you know. .. Our monthly joint income is £4.5k so we can afford the £1300 a month on rent.. This will **** you off.. My wife gets s yearly bonus of around 20% just for doing her job.. You gotta love the banks !

The plan is do 95% for the first 2yrs and then every year pay lump sums to pay it off within 20yrs

Knowing us we will stay to the plan like the last 20k loan gone in 5yrs. Morgage free by the time I'm 50 is the target ...

Henrik

iTrader: (5)

We're going through the motions of buying a house at the moment, and I know how much it sucks to save up for a deposit, but come on, 5%?

With those bonuses and that kind of joint income after tax, you should have been able to save up a lot more than 5%.

One thing I agree on, though, is to buy your final house the first time. There's no "ladder", just more debt, more moving costs and a longer mortgage.

RobsyUK

iTrader: (2)

come on 5% Yes... I don't fancy splashing our finances all over here and i was going to send it as a pm but **** it.

My wife has been in her job for a year and Srtupidly when we were young we managed to borrow around £30k - £25k on loan the rest on cards. Until this August we have been paying it all off while buying our first house, getting married (20K), 2 holidays a year and not needing to cut back on anything.

We can afford a 10% deposit but thought if the option is there then we might as well snip it up at 5% and use the rest of the money to do the house up and have another 2 weeks in the sun. - I don't mean spain

For those who think that we would be shafted with the interst the rate is 4.99% which is 0.03 more then abbey And abbey are the lowest.

I orginonally started this thread to help others who were looking for a 95% morgage not to take **** from others..

Won't bother next time.

PaulC72

Robsy, you just do what you think is right let the others ponder on their own insecurities

Henrik

iTrader: (5)

Obviously do what you think is best for yourself, but after your two year fix, you may find that interest rates are higher, and that house prices have stayed the same or fallen. If this happens, then you will be stuck on the BOE + 4.5% rate, which might not seem all that attractive. Remember, "property" is far from a one way bet at the moment.

We also work in finance, and we're taking out payment protection insurance for the mortgage until we have a years worth of mortgage payments saved up again, might be sensible to do that for your wife as well, with the markets the way they are... It's 150 a month, but for the peace of mind, it will be worth it for a year or two (for us).

97TURBO

So are you saying the rate you will get is 4.99 on the 95%LTV?
What about Santander, we enquired with them at my local branch but they would only do 90%, has things changed?

Im in the hunt for a 95LTV at the moment too. Its that or rent as we didnt generate enough from our house sale.

DJ_Jon

iTrader: (7)

We are buying our first house together at the minute, I totally agree on the "buy your final house", which is what we are doing. We don't need 4 bedrooms either, but we will do in the future.

5% deposit is a bit risky in the current Market IMHO. Make sure you can afford the payments if the rates go up. We are going to get payment protection too, my job is well paid but not permanent, so along with having a years with of mortgage payments in reserve, we will make sure we are double bagged incase I'm out of work

g7prs

iTrader: (5)

We were both lucky and unlucky when we sold our first flat to get a house. We sold right at the peak about four years ago so made a good lump sum to put down on the new house. Unfortunately that means we also bought when the prices had just peaked! The best bit though was the nationwide mortgage we got at the time, it was fixed for three years 5% but then fell back to .5% over the bank of England base rate!

EddScott

This is pretty much the same as our mortgage. Only downside is that ours is interest only so I'm having to save into an ISA - I'm not very good at saving money. Our actual mortgage payment is lower than our monthly fuel bill (little 3 bed semi)

mamoon2

Ok, so you're not buying a £300k house then as the original post suggests. You're buying a £235k house? Seems more sensible, but if so, surely you could put an extra £8.5k down and make it 90% mortgage and get a better deal?

Don't forget, if house prices go down by even a couple of % you will not be able to even find another mortgage product as your LTV will be over 95%. This means you will be stuck on 5% above base.

Obviously, if you plan to overpay with bonuses, then this won't matter too much.