Is the 95% mortgage a myth?

gashead86_2

Hi Guys,

I am in need of some mortgage help if at all possible...

My girlfriend and I decided 7 months ago that we were ready to live together and with house prices as low as they were/are it seemed like the sensible thing to do to get on the property ladder!

We went to see a mortgage advisor and were told we could afford a property up to £170,000 and gave us a very good quote based on a 10% deposit and then told us to go away and start saving.

After 6 months of hard saving we decided we were near ready to start looking, so we did....

This weekend we found a house we both really liked, it is on the market for £172,500 and the vendor has already turned down numerous offers of up to £169,500! So it seems as if that we are going to need to bid £170,000 to get this house! We currently have £11,000 saved for a deposit giving us approx 7% of the house value.

After hearing from a few sources that 95% mortgage was starting to be introduced again wee went back to see our ma yeterday to try and arrange a 95% mortgage and then perhaps put a bid in on this house. Our ma has subsaquently told us that in fact the 95% mortgage does not exist at the moment! And in fact she is now advisng us to get a 15% deposit! This would make the deposit needed for this house £25,000!
This has obviously set us back a long long way!

I am just interested to know if you guys know of any 95% mortgages out there at the moment? Or failing that some advice in general would be hugely appreciated!

Thanks guys!

vicshippers

I would have to agree with your ma - 95% mortgages are pretty much non-existent. Even if you could get one, the rate would not be very nice at all.

It seems like you've done really well saving so far, maybe stick at it for another few months until you have the 10% the advisor stated. By that time maybe the house will stick be on the market and they might be a little more willing to bargain over price...

goggle

you probably need to lower your expectations of a first home with an £11K deposit ...
You are highly unlikely to get a 95% mortgage in the current climate!

LeeSouthEast

95% is unlikely. There are some 90%'s about still if you credit rating will support it. Most lenders are looking at 80% now, and for access to the best rates (i.e. saving you money every month!), 75% or below.

stcolin

95% mortgages are available here in NI throught Ulsterbank. 5% deposit is paid by a developer and is available on a list of chosen new sites selected by the bank. If your property grows by more than 5% in the first 5 years, you pay back the deposit. If your property falls, your mortgage falls.

Fixed rate is 5.15% for 5 years, variable 3.25% for 5 years.


This is what my partner and I are going for this Friday, fingers crossed.

gashead86_2

Hi guys.

Thanks for all your help.

Ye, so she was about spot on with what she is saying then. Well at least we know now for sure.

We were offered some fairly reasonable 90% mortgages so I guess that is my best bet.

I appreciate that the 70% -75% mortgages are going to give me the best rates but the cold hard fact is that we are never ever going to be able to save 25% of any houses value! I guess its a boat all of us first time buyers are in!

jade1986

It is not a myth.. my mortgage offer for 95% LTV has arrived today. :T

It is with Nottingham BS, but Yorkshire/Clydesdale do it as well

jade1986

And we are first time buyers, just to clarify.

You read so much on here about it being so difficult when you're first time buyers, and it really scared me.. but we saved hard for 8 months and then found the perfect house.. made an offer, accepted straight away, and then applied for the mortgage.. I was scared to death we would be declined for some reason, but everything went through fine, survey has now been done, and all okay.

Seems too good to be true at the minute.. and all with 5% deposit, when people tell you it is impossible

jodiebabes

Whats the rate Jade1986?

jade1986

jodiebabes wrote: »

Whats the rate Jade1986?

It's 6.39%

gashead86_2

Sounds like you are living the dream Jade! I kinda feel I am at the complete opposite end of things at the moment!

That is a great rate even at 90%! Let alone 95%!!!!

Well done Jade and good luck with it all!