Any 95% Mortgages for FTBs?

rocketchimp9

Hi there is a lend a hand mortgage by lloyds, You pay 5% deposit but you need someone (parents?) to invest 20% in a lloyds savings account paying around 3% interest.
HTH

g_attrill

rocketchimp9 wrote: »

Hi there is a lend a hand mortgage by lloyds, You pay 5% deposit but you need someone (parents?) to invest 20% in a lloyds savings account paying around 3% interest.
HTH

However, it is important to note:

"The savings are held as additional security for the mortgage by way of a legal charge, but your Helpers should be able to get their money back provided you don't default on the mortgage."

jade1986

a1a1a1 wrote: »

Thanks jade1986.

Just looked on the FSA website (sorry can't post links)

There are 7 mortgages available at 95% LTV. Three at Lloyds (which is not really a proper 95% LTV because of the fact you need someone to open a savings acount with at least £20,000!).

The others are Nottingham BS (6.39% fixed for 3 or 5 yrs), Clydesdae and Yorkshire Bank (both 6.99% fixed for 3 yrs - this has the better APR over 25yrs). I've been on the websites but you will need to speak to a branch for further information.

Apart from this the best other deal out there I've seen is HSBC with 90% LTV at 5.99% fixed for 2 yrs.

Has anybody heard of any others deals?

Yes, we went with the Notts BS 6.39% fixed for 3 years

If you really need 95% then it's worth giving them a call.. they were brilliant with me. Everything was done over the phone and didn't need to visit the branch

FerociousDave

g_attrill wrote: »

However, it is important to note:

"The savings are held as additional security for the mortgage by way of a legal charge, but your Helpers should be able to get their money back provided you don't default on the mortgage."

Should be able to get their money back?!?

Presumably that's there in case you fall into negative equity?

morg_monster

I am awaiting our final mortgage offer for the Lloyds Lend a hand mortgage so can give a few details. The "helpers" get their money back in 3 years (well feb 2013) when the fixed rate ends, as long as you (the owners) have 10% equity in the property by then. If you don't have 10% they will keep the charge on the account until you do, then the money is released. (or you can pay down money to get to 10% and release the charge). You get the first house valuation free, then after that you have to pay for the valuation.

My parents are our helpers, the savings account is in mum's name since she's a non-tax payer. Dad's pretty happy to be getting 4% on his savings for 3 years at the moment (although might not look like such a good rate by the end of the period!). We have put down 12%, them 13%, so we are fairly confident we will have 10% equity in the property at the end of the 3 yrs.

Obviously it sounds like this won't work for the OP but just thought I'd add these details.