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95% ltv

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vaani114411
vaani114411 Posts: 20 Forumite
edited 16 October 2017 at 10:04PM in House buying, renting & selling
Hi,

I was thinking to buy a property a pre owned but didn’t know that my immigration status could be a problem. I am a dependent to British National and have a daughter with the same status. I am feeling so disappointed. I was considering for 95% LTV and 5% mortgage. No wonder so many people are unable to buy a property. Both of us are have a reputable jobs and a good pay.
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  • goodwithsaving
    goodwithsaving Posts: 1,311 Forumite
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    And the point of this thread is??

    95% LTV isn't 5% mortgage. It's 95% mortgage and 5% cash (and a 95% LTV is a stupid idea).
  • juniordoc
    juniordoc Posts: 366 Forumite
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    The home office may have done you a favour, now is not a good time to buy at 95% LTV unless you plan on staying in a property a very long time.
    Prices are stagnating, falling in some areas, and if you buy with a very small deposit like this then you really risk negative equity.
    What has to change with your immigration status to allow you to buy a property in the future?
  • bowlhead99
    bowlhead99 Posts: 12,295 Forumite
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    vaani114411 wrote: »
    I was thinking to buy a property a pre owned but didn’t know that my immigration status could be a problem. I am a dependent to British National and have a daughter with the same status. I am feeling so disappointed. I was considering for 95% LTV and 5% mortgage. No wonder so many people are unable to buy a property. Both of us are have a reputable jobs and a good pay.
    Why not get the person on whom you're dependent (the British national) to borrow the money against the property - are they not creditworthy? Why not offer to put down a much bigger deposit - are you expecting the bank to fund nearly the entire purchase for you? Why should they?

    It doesn't matter that you and your daughter have 'reputable jobs'; if you are both 'dependent' on someone else then the lender would be irresponsible to lend you tens or hundreds of thousands of pounds to fund 95% of the current value of a home, knowing that if the property price falls by a third your debt would be 40% greater than the updated valuation of the property on which the debt is 'secured' and you as the borrower don't even have the right to live here on your own.
  • csgohan4
    csgohan4 Posts: 10,587 Forumite
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    buying a house is not a right, it's a privilege that is respected. I bought a house after almost 10 years working and years of saving like mad and working extra shifts, sacrificing holidays.


    Do it like everyone else and save, no one owes you a house
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
  • vaani114411
    vaani114411 Posts: 20 Forumite
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    So you guys have got me wrong. I am a dependent on my husband who is a British National. My daughter is 1 year old and the house that I am looking at is available at 5% deposit so I was thinking for 95% Loan on it. I and my husband are with reputable companies and not my daughter. And my question was is 95% Loan to Value a good idea? We both have good credit ratings, no outstanding debts whatsoever. If we buy the flat, we don’t want to sell it ever. We plan to live in it for a pretty long time and it’s a good location near to Metropolitan line in London like just stone away from the station.
  • kingstreet
    kingstreet Posts: 38,770 Forumite
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    Why aren't you purchasing together?
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • vaani114411
    vaani114411 Posts: 20 Forumite
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    We are thinking to buy together.
  • juniordoc
    juniordoc Posts: 366 Forumite
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    No, buying a property at 95% LTV is not a good idea, particularly in London where house prices are falling.
    Keep saving, and let the prices fall, you may be in a better position to look at buying in 6-12 months.
  • LandyAndy
    LandyAndy Posts: 26,377 Forumite
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    Ah! So you and your husband want to buy a flat in London with a 95% mortgage but you can't get anyone to loan you that despite having good, well-paying, jobs?
  • elliemet23
    elliemet23 Posts: 34 Forumite
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    Myself and my partner have just bought a house and we have done 95% LTV... Someone explain to my why that's "stupid idea"?

    You don't know people's circumstances and how much they have saved to use as a deposit, so don't be so judgemental. We didn't buy in London so can't comment on the market there, but it's worked out perfectly for us.

    You need to find a good mortgage broker, and consider buying together to increase your chances of getting a mortgage.

    Good luck!
    xxxx
    27th October - £1008.86 owed
    24th November - £987.02 owed
    Bloody interest :mad::eek:
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