Any mortgage advise greatly appreciated

Laura99

I have tried to contact 3 different mortgage advisers and have had no luck so would really appreciate anyones thoughts.

Me and my partner have found a property that we would like to purchase as first time buyers and would like to know what kind of position we are in, in the current market.

The price of the property is around £120k and at the moment we only have £8k deposit. We could potentially get up to £12k but have also been told about the possibility of vendor gifting to raise more deposit.

I have recently heard that it is impossible to get a mortgage with less than 15% deposit.

We would just like to know before wasting anyones time, how likely it is that we could get a mortgage to buy the property and how much deposit we realistically will need. Could anyone help? Thanks

TedTrippin

Hi Laura,

Although this is my first post I am also in a similar boat.

I have a 15% deposit and am able to select from a number of mortgages, all fairly bad.

The highest TLV I have seen is 90% so I am guessing you will definitely need that 12k.

Also, I was previously using a broker. They found a good deal but never put through the paperwork in time so we lost it; after the 1.5 drop the lender pulled it. I would suggest you shop around yourself. I did, I went to Britannia (who don't deal with brokers) and they offered me a better deal than 2 other brokers could.

Ted.

Laura99

Hi Ted,

Thank you for your reply.

I know what you mean about brokers, my brother has had exactly the same thing happen to him.

It is pretty bad having to raise 15% deposit, we really don't want to miss out on the house, but looks like we will just have to wait.

Only 6 weeks ago we were told that lenders were still allowing vendor gifting, but it doesn't look like this is an option anymore.

Thanks again.
Good luck with the move!

Laura

herbiesjp

There are a handful of 95% deals - although these are guarantor mortgages, and so you will need a parent to go on it with you.

At 90% there are also not many options ranging from mid 6% upwards, depending on what fees and how long you want to be tied in for.

There are options available to you, you just need to find the one that fits what you are looking for, and see if you fit their lending criteria

Tiddler_2

Halifax will do a FTB mortgage at 95% by going direct details here

http://www.halifax.co.uk/mortgages/ftbchoices.asp

Lenders are now pricing based on risk - and the risk is that a 95% mortgage will be in negative equity this time next year - hence why the rates are higher. They don't really want to compete for these deals!!

With regards to Britannia - they do deal with brokers, they just don't pay them for doing the business!

Laura99

Thanks all for the info. It sounds as though there are a few (very limited) options about for us so will try again with the mortgage advisers.

My partner is self employed, be it with 5 years of accounts, so I think it best to go through an adviser, as you you guys know a lot more than me on lending criteria with different lenders.

Thanks again