2nd time buyer squeeze/need WoM advisor

Avallon_2

Hi,

I'm looking for some options for 90 and 95% LTV. I'm quite happy to switch after 2 to 3 years.

Our situation:

My partner and I are trying to sell our property as we both live quite a while away from our jobs. Depending on how things go we may only walk away with a 5% deposit for our next house, although there is a chance that we'll get 10%.

Our combined income is 47k with a GBP200 monthly loan commitment. I've just graduated. In the current market very few options seem open to us.

Help!

Ian_Griffiths_Halifax

Speak to your friends and see if they can recommend a Whole of Market Broker locally.

If you can get a 5% reduction in asking price (shouldn't be too hard just now) you can use the Vendor Deposit Scheme with the Halifax. Ad that to your own 5/10% deposit and you are only looking at a 90/85% Loan to Value Ratio and so you'll get better rates.

If you go for a 95% mortgage you'll probably get clobbered for a High Lending Charge (this will be £000s), a higher Arrangement Fee and hgiher Interest Rates.

herbiesjp

Also - what kind of house prices are you looking at?

You have got a good joint income - just need to make sure you are looking at reasaonable income multiples to make sure affordability is there

Avallon_2

We're looking for a house of up to 130k ideally, although we might exceed this by up to 5-6k.

Thank you all for your input. I've found a broker through this forum who has found a very competitive fixed rate mortgage with a 95% LTV.

Cheers,
Arno