FTB 15000 deposit but poor mortgages

ads910

me and my girlfriend have 15000 deposit for a house, about 10% deposit. we earn around 50,000 per year.

started looking at what mortgages are on offer and they all seem very poor.

id like a fixed rate for 3 to 5 years but with 90 LTV the rates are around the 6.5% mark. unless you have 25% deposit you cant get anywhere near 5 or 5.5% which is what i would like. even though 3.9% is on offer if you have big enough deposits.

because of the above i thought i would go for a tracker just for 2 years then switch to fixed then, but after looking once again i found if you havnt got 40% deposits the only tracker they will give you on 90 LTV is for the term of the mortgage with high penalty clauses for ending it early.

if you know of anyone offering a good mortgage for people wanting 90 LTV let me know.

DJ1UK

Britannias 90% SVR deal looks good... not a fixed deal though and could go up / or down

http://forums.moneysavingexpert.com/showthread.html?t=1365573

DJ

ads910

rather stay away from variables unless its a tracker, ideally id like to stick with a fixed rate but if i cant get a good rate with 90% LTV then ill have to re asses my situation

justme111

ads910 wrote: »

rather stay away from variables unless its a tracker, ideally id like to stick with a fixed rate but if i cant get a good rate with 90% LTV then ill have to re asses my situation

it does say "for life of mortgage" on their website, does not it?

DJ1UK

justme111 wrote: »

it does say "for life of mortgage" on their website, does not it?

Yes, but this just means you're on their standard variable rate for as long as you want to be (could be life of mortgage or until you switch)... so they can always change the rate.

DJ

geoffky

save more over the next year and you will win win win

ads910

im thinking i might have to, luckily im in a position where i dont have to buy right now, id just like to to take advantage of the market at the moment, if i can get a fixed rate of 5.5 at 90% LTV ill buy now but if not ill just hold out and save some more

DJ1UK

C&G do a Fixed for 2 years at 5.69% at 90% LTV

http://www.cheltglos.co.uk/mortgages/first-time-buyers.html

DJ.

ads910

yeah thats the best deal i can find too, frustrating knowing 3.9 is available if you have a large enough deposit, my credit is great and my job is secure, chances of me ever missing a payment is slim to none so getting penalised for wanting 90% ltv is a little anoying. oh well i guess thats life, cheers for the info ppl.

ad9898_3

If you have a 50k income and 15k deposit now, you should sit tight for 18 months and save like your life depended on it, by then you would be able to get a better house with an LTV of around 30-40%.

By having a little patience and saving, you could set yourself up very nicely, with little debt.

ads910

that might be what i will do, theres no way im going to get a mortgage with a stupid rate just because i only have 10% deposit.

what is your opinion on what will happen within the next 6 to 12 months. To me i think everyone is just guessing and no one really knows.

even if the boe reaches 0% will this effect the rates of fixed mortgages at 90 ltv.

if there is a chance of getting 4% at 90% ltv ill definately wait it out.

cheers for the help.