First time buyer looking for 95% mortgage

ghafooci

I've just found a property and agreed a sale price with owner @ 275K. I currently have about 14K for desposit i.e. 5% of the total. I'm looking for 95% mortgage option which would cover the remaining house price. Currently confused with many mortgage options, and would appreciate your help. I want to know:

1. Best capital repayment mortgage option(s) if I'm considering to keep this house for only 4 or 5 yrs.
2. Best mortgage deal based over 30 yrs to keep the repayments as low as possible.
3. Finally, is credit history likely to be a major issue? I have nothing major like a CCJ, just a few missed payments during uni days. However on the plus side I do earn a sizeable salary which I hope may work in my favour.

Anyhow, any help in this matter would be greatly appreciated.

thanks,
Ghafooci

MortgageMamma

HI There.

Its impossible to give you the answers you desire without fully investigating your circumstances. There's no one size fits all when it comes to mortgages, what may suit you best could be wrong for someone else. I think your best bet is to instruct a whole of market mortgage broker to advise you, after all this is your first home and its important to get it right first time.

MM

herbiesjp

At 95% borrowing you will also need to take into account higher fees with most lenders - called Higher Lending Charges(HLC). There are lenders that will not charge this fee, but you need to see if you fit the criteria of those lenders - also the rates offered will be higher than those that charge the HLC.

Again, have a word with a whole of market mortgage adviser and let them find the best deal for you based on your circumstances, especially as you say you have some missed payments (this may influence what is available to you)

HTH

meanmachine_2

And don't forget Gordon Brown's cut - 3% stamp duty, which is 7K+ on your property.