Is the 95% mortgage a myth?

jade1986

gashead86 wrote: »

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!

Thanks.. I would honestly give Yorkshire or Clydesdale a call.. you never know!

Their rate is 6.99% though.. hence us trying Notts BS first

homehunter

I hope you manage to find something you can afford, truly I do! Just be careful of negative equity - get a good price on that house

We went to our MA 3 times within an 18 month period while we were looking. At first, we were advised to get a 10% deposit. Next time, it was 15%, then 20%...naturally the last time we spoke it was 25% which is just unrealistic for FTBs, so we searched ourselves and got a decent 80% deal. Frustrating when the goalposts keep shifting, isn't it!:rolleyes:

gashead86_2

Hi guys,

Just though I would check in to see if anyone had heard of any 95% mortgages that were in the offing or even better available now?

Myself and my partner are still very much in the same boat as the last time I posted here. Very fustrating to be told that you could afford to move out tommorrow but can't as we have to save a minimum of 10%!

Cheers guys!

Bufger

Im going to go ahead here and make a few guessing and assumptions here. Please only use this as an example, if its close to your situation then you can use it as a brief comparison:

They said you can borrow up to 170k. Thats always the max they will let you and will be your stretched limit, its not always healthy to get to this limit as the future isnt known (strange that eh!)

Im guessing based on that and the fact you're quoted a 10% deal through a broker that...

Joint income roughly 42k. 5 year fixed rate at 6.49%? (best deal out there + .50 for the broker). house value you like 170k. deposit 17k (if you were to get that 10% deposit). term 25 years

thats a mortgage monthly payment of £1160.

(42000-12000) = 30000. 20% of 30000 = 6k. 42k-6k=36k. 36000/12=3k.

Monthly income after tax = £3000

3000-1160= 1840.

take away that 1000 for bills, council tax and your general outgoings and you're left with £840. Seems ok in my book!

Always work to worse case. Your joint income may be less than i have stated which will reduce the leftover amount. You may have a car loan and your missus may have one too, this also comes out of that leftover amount. Any student debt, outstanding loans, store cards etc.

If you have a baby one of you may be out of work for a while and will have to repay on one income + pay extra for another mouth to feed.

Never set the bar too high is the lesson. There is so much more to buying a house than a simple calculation a broker can do for you!

Apologies if my calcs are wrong. Im rushing and should be working!

jade1986

Hi there..

I've been checking since and they seem to be the same..

Notts BS
Clydesdale/Yorkshire - Did you try them?

We complete 2 weeks on Friday with our 95% mortgage :T