Any 90% LTV mortgages at over £500k?

chadfield

Hi all

I am considering buying a house in London and wanted to check a specific point with you.

I currently live in a large flat, bought for £380k with a 100% mortgage 3 years ago (probably c.£30k of equity in it now). I would ideally like to move next summer as:

-had my first child at the end of last year and space is starting to get a little tight; and
-I have a short lease on my flat of c.66 years and would like to sell it before it drops below 65 yrs (I understand that some mortgage lenders will not lend for leases that are shorter than 65 years)

My wife and I are on decent incomes (c.£70k+£120k respectively, so £190k joint).

We met with a mortgage broker today and our problem is likely to be re deposit. To summarise:

-The houses in our area that would fit the bill are c.£650k
-Mortgage broker thought that in terms of 'affordability' we would be fine to get a mortgage for £700k-£800k, so no problems on that front.
-However, it appears that lenders will allow a max LTV of 85% for mortgage over £500k. We can only realistically pull together a deposit of 10% over the next year and so will be short. It would probably take another year or two to save this additional 5% (c.£30k), by which time I would probably need the cash to extend the lease!

Is anyone aware of any lenders that would lend at 90% LTV over £500k? Our broker thought that HSBC might, but we have spoken to them this afternoon and they confirmed that 85% was the highest that they could go to.

Thanks in advance

Chadders

diable

I think that if you are both jointly on a £190k per year salary the you may be on the wrong forum, have you tried Coutts (sp)?

poppy10_2

diable wrote: »

I think that if you are both jointly on a £190k per year salary the you may be on the wrong forum

He's being flippant, but he has a point. If you have that much money it is worth paying for professional advice, rather than listening to a bunch of strangers on this internet forum. Besides, we're all idiots.:j

chadfield

Cheers for quick response. Have already spoken to mortgage broker, but was wondering whether anyone else had any experience (had some useful 'second opinions' on this forum when buying my original flat). Or any thoughts as to whether 90% LTV mortgages might be extended to £500k+ mortgages in the future (i.e. next twelve months)-were LTV's more relaxed at this level pre-CC??

Thanks

Chadders

sandford6016

Does it really matter how much you earn?! The idea of this forum, and indeed whole website, is to save money! However much you earn, it's always nice to be able to save and get things cheaper!

VKay

Hi,
Sorry if you find this rude- it's not meant to be. It's just that I'm so amazed you haven't any savings with such exceptionally large salaries (I appreciate you are in London)?

What if you lost your job/s?

I would urge you to save some money whilst your incomes are so healthy. It might not help now but it will help you with the next house.

Good luck.

ginvzt

really, with £190k salary a year, you should be able to save at least £100k deposit in a year. What do you spend all your earnings on if you have nothing saved?... We earn just over £60k joined, and still don't spend all of it...

getmore4less

Income £10400pm (+benifits)

mortgage £2200 (£380k @5% 25y)
living(3) £1500 (including bills)

Net £6700

Where does this go each month if you have no saving now?

Must be able to do £5kpm thats £60k double what you think you can save in a year or two(£30k).

Any other assets you could sell, do you have cars, shares etc, there must be something to show for the money.


Extend the lease now it will improve the number of buyers, many will not want to be bothered with extending the lease themselves.

herbiesjp

There are some direct deals which a "true" whole of market adviser will be able to source for you.

They will probably charge a fee, however it may be what you need. I'm guessing the broker you saw was not a "true" whole of markert broker and therefore did not source direct only deals

chadfield

After tax, existing mortgage, childcare and repayment of an existing loan our net leftover cash is c.£60k. To move, we will need between £100k (for 10% deposit) to £132k (for 15% deposit). Assuming £30k profit on existing flat, we reckon we could get the remaining £70k through saving and crystallising existing assets.

Getting up to £132k will push us back at least a year, at which point I think the lease will need to be extended-which will push us back another year (I don't think that there will nec be a direct link between what we pay for the lease extension and the impact on value of the lease when we sell).

Herbiesjp-I think that the broker that we saw was 'whole of market'. He suggested we speak to HSBC directly as I understand that they dont deal with brokers. Do you have any ideas of any other providers might provide this type of mortgage for a fee?

Cheers

herbiesjp

chadfield wrote: »

Herbiesjp-I think that the broker that we saw was 'whole of market'. He suggested we speak to HSBC directly as I understand that they dont deal with brokers. Do you have any ideas of any other providers might provide this type of mortgage for a fee?

Cheers

It sounds more like a caculated guess, as there are potentially other options.

Are you asking if I charge a fee or the lender?