95% Mortgages?

Kez1983

Hi all,

Does anyone know if there actually is anyone out there offering 95% mortgages? I am looking to buy a house at about 80k but at the moment only have 5k deposit. I started a new job recently and now earn 35kpa so can save this but situations mean I need to move feb/march next year so realistically I will only have about 6/7k by then.

I dont really want to have to move to another rented house to save up more if I would be able to buy straight away!

Also where would be the best place to find an independant mortgage advisor?

Thank you!!

opinions4u

While I have read reports on here (a few months ago) about Nottingham Building Society, Yorkshire Bank and Clydesdale Bank offering 95% mortgages, the rates don't seem to appear on web sites!

You really do need 10% plus legal/valuation/product fee plus moving costs plus a decent wedge to get the ball rolling on furnishings and other start up costs.

Decent adviser? Try a mix of Yellow Pages with personal recommendation for your area. I believe www.unbiased.co.uk has a very limited mortgage adviser section.

_Andy_

Have you factored in the additional costs of valuation, solicitors fees, cost of moving, furniture, furnishings, changing locks, cost of any decoration or renovation, maintenance and contingency funds?

Kez1983

Will have £1200 coming back from current rental deposit for redecoration etc and am more than prepared to live and decorate at the same time and furniture etc have enough already to live with.

Any ideas on how much solicitors and fees etc would be? With a 5% deposit I would have 2/3k for this.

opinions4u

All estimates:

Solicitor £800
Survey £500
Stamp Duty 1% of total purchase price if over £150k
Mortgage product fee £1,000
Contingency fund: 3 months net pay (or more)
Van hire for a day: £120

You still need a 10% deposit though.

Kez1983

Thanks Opinions,

Thought I would need the 10%, was just hoping I didnt! Am kicking myself that I didnt save earlier. Just liked spending too much, oops! And never really thought I'd have to move now. Am struggling to find somewhere decent rented as dont want to pay too much so I can carry on saving.

herbiesjp

You could try and find a lender that would accept a 5% vendor deposit to go with your 5%

Alternatively a family gift would help - even if the gift was repayable, your income would be more than sufficient to cover the mortgage and the gift, and so a lender should be ok

Muhasib

opinions4u wrote: »

All estimates:

Solicitor £800
Survey £500
Stamp Duty 1% of total purchase price if over £150k
Mortgage product fee £1,000
Contingency fund: 3 months net pay (or more)
Van hire for a day: £120

You still need a 10% deposit though.

SDLT will be zero for the OP as the price is quoted at £80k and the zero rate threshold is up to £125k not £150k from 01/01/2010.

I'm hiring a transit for £41 and most of my quotes were £41 to £50 so it pays to shop around.

Kez1983

Ive got a man with a van that is doing it for free when I eventually move!! :j

And Herbie I am trying to convince my family they are nice enough to temporarily loan me it, but as yet they are unconvinced!!!

opinions4u

muhasib wrote: »

SDLT will be zero for the OP as the price is quoted at £80k and the zero rate threshold is up to £125k not £150k from 01/01/2010.

I'm hiring a transit for £41 and most of my quotes were £41 to £50 so it pays to shop around.

It always pays to round up though.

Then if the unexpected happens, you can afford it.

(Yes, I'd missed the £80k pp thing and got the stamp duty threshold wrong, and don't have the guts to claim I was talking about Disadvantaged Areas Relief threshold of £150,000!!)