1st time buyer any other 10% deposit deals out there?

amsquared

My daughter is a 1st time buyer and has found the RBS 2 Year Tracker rate - First Time Buyer Exclusive. The product has no fees and 10% minimum deposit which would suit her needs - the deposit will come from the bank of mum and dad.

She is looking to borrow c£72000 against a property valued at £80000.

Are there any other product providers offering similar 10% deposit and no or low fee deals?

redsclubbedup

brittania are doing a 10% mortgage which is what my girlfriend and I have recently applied for, its one of the better rates too, and you have the option of paying 599 upfront for it, or paying off the 599 over the fixed term, making the monthly payments a bit more

the main reason however that we chose brittanias service is that they offer an inhouse consultancy and soliciting package. meaning if the sale falls through we wouldn't be liable for certain costs, the process is all done in house, so in theory is alot quicker, and the surveyor / consultancy rates are set, so no nasty suprises down the line :T
they are offering 2/3 and 5 yr fixed with this package too

amsquared

redsclubbedup wrote: »

brittania are doing a 10% mortgage

Thanks I'll check it out.

Unfortunately she doesn't meet one of their conditions - having just graduated she doesn't have the salary history they want.

* Minimum of 6 months in current job for main applicant

redsclubbedup

thats the issue i had with my partner, as i have only been in my new job for 4months, so we had to stretch to 15%

if you look on moneysupermarket.com there was one that came up as 10% deposit, aimed at graduates - unfortunatly my girlfriend never went to uni, so we were unable to apply for this, as both parties had to have a hnd or above qualification

amsquared

RBS came up trumps and we have an offer with 10% deposit.

DaveyGee_2

amsquared wrote: »

RBS came up trumps and we have an offer with 10% deposit.

Also looked at this deal for about the same amount of money etc. The only this that worries me is the +4.25% above the boe base rate as i can see the base rate going up a bit over the 2 years

Mrs_Bumble

No direct knowledge but previous post on another thread suggested that Nottingham Building Society loaned at 90%LTV.

Base rate of +4.25% would be a concern.

jade1986

Mrs_Bumble wrote: »

No direct knowledge but previous post on another thread suggested that Nottingham Building Society loaned at 90%LTV.

Base rate of +4.25% would be a concern.

I think that may of been me, but it looks from other people's posts that it is Nottinghamshire/Derbyshire only, maybe surrounding areas?

They actually do up to 95% LTV because that's what we are applying for with them, but there is a higher lending charge on the 95%, not on 90% though.

On the FSA website it has the product as 'restricted availabilty'. When I spoke with them the other day she said that it was available until Oct/Nov, but they have extended it now

amsquared

RBS have two no fee 90% LTV products for first time buyers.

5 Year Fixed Rate - First Time Buyer Exclusive fixed at 5.99% to October 2014 then current variable rate and

2 Year Tracker Rate- First Time Buyer Exclusive 4.69% (Tracks +4.19% above BoE Base Rate ) then current rate.

My daughter will probably be getting married in 2 to 3 years and moving house at that point.

The 5 year fix is about £60/month more than the 2 year tracker.

Should she opt for the Fixed or the Tracker?

DaveyGee_2

The trackers a bit of a gamble as the rate can only go up and if your daughter gets used to the current rate then it goes up she might struggle to meet payments.

Then again it might not go up in the next 2 years (which is very unlikely) so as i said its a gamble.