95% LTV Mortgages (5% Deposit)

mcmatt

Hi Moneysavers,

I'm looking at a joint mortgage for a property valued at £275,000 - I'm hoping to negotiate it down to under £250,000, partly to avoid the additional stamp duty and more importantly perhaps because we only have £12,500 deposit.

As such we are looking for 95% mortgages, but with all the credit crunching and such like these seem to be few and far between.



Is anyone aware of any lenders offering a 95% LTV product at present? I'm guessing if any exist then we'll get hammered on the interest rate, but it would be good to know whether or not we stand a chance of finding anything!

Thanks all in advance -

mcmatt

uncommonadvice

Don't really want to go into too much advice online but negotiate a 5% discount on list price and use this as a vendor gifted deposit, then add in your 5% making the whole deposit up to 10%. This limits the amount of lenders but brings your interest rate down by about half a percent.

silvercar

Try Halifax?

Heyman_2

If you want a 95% LTV then your choice is limited but don't rule out the lender's SVR as whilst this isn't usually the greatest rate, they might be a little more accomodating with the LTV.

For example, Nationwide will give you their SVR (currently 6.49%) at 95% LTV with no booking fee. Some lenders have a better rate on their SVR (such as First Direct at 6%) and they also tend to be more accomodating with letting you on it for a higher LTV than normal. I know this as I needed just over 90% and FD invited me to apply for their SVR product.

A +1% SVR isn't too bad as a lot of the Trackers around at the moment are at a similar rate.

mcmatt

Cheers buddy...the search continues!

minimike2

You need a 25% deposit to get Nationwides SVR im afraid.

Halifax / Woolwich would be the two I would look at to begin with.

koexelek

Heyman wrote: »

If you want a 95% LTV then your choice is limited but don't rule out the lender's SVR as whilst this isn't usually the greatest rate, they might be a little more accomodating with the LTV.

.

Good advice.

Unfortunately, a lot of lenders will not currently let new buyers have their SVR at present, because it represents too good a deal with no tie ins .

Heyman_2

minimike2 wrote: »

You need a 25% deposit to get Nationwides SVR im afraid.

Halifax / Woolwich would be the two I would look at to begin with.

Yes I've seen that now - turns out I was looking at the remortgage rates!!

However - for 95% LTV they are doing a 3 year tracker at 6.54% and a £299 fee
which isn't too far away from the 6.49% SVR. And plus they're reducing rates tomorrow, although I doubt the 95% products will be included! Never know though

mcmatt

Well...the best I've found so far for 95% are:

Halifax: 7.19% variable, £299 product fee
Halifax: 7.14% variable, £799 product fee

Nationwide: 6.54% variable, £599 product fee
Nationwide: 6.93% fixed, £599 product fee

Natwest: 6.69% fixed / variable, £999 product fee


Haven't established what additional costs are involved with each as yet.

Anyone found anything better?

minimike2

Thats about the best you will find i think

opinions4u

Halifax are knocking 0.4% off some of their 95% rates tomorrow.