first time 5% deposit?

karbar

Hi

Im first timer looking to secure a mortgage for first house
i wondered if there is any lender which accepts 5% deposit ? or less than 10% ?

also if there is any essential guide for someone like me , im zero talent when it comesto finance n mortgage

new_home_owner_3

post office have some good deals for 10%

karbar

currently my credit score is not very bad but also not very good! its just below normal, and i can see it getting better in 2-5 years time , does this mean i should go for 2 years fix term mortgage only ?
will i cost me more if i go for 5 years fix term mortgage ?

beecher2

If your credit isn't good and you have a deposit of less than a 10%, you have no chance of getting a mortgage.

azazle

yorkshire bank will lend with only 5% deposit but only if you have a good credit history. What is having a negative influence on your credit file?

beecher2

https://forums.moneysavingexpert.com/discussion/2319255

17k debt and no savings unless things have changed in the last 2 months.

azazle

yorkshire bank wont touch that kind of risk on such high ltv's

karbar

im arranging to borrow 10k from my parents as deposit, and my bank has agreed to spread my loan on top of my mortgage , but the bank is only lending me 70k because of my outstanding loan,

karbar

azazle wrote: »

yorkshire bank will lend with only 5% deposit but only if you have a good credit history. What is having a negative influence on your credit file?

its just that i havent worked on it, i havent build it yet!! we dnt all get good credit by default !!! we have to work on it and takes time

inca_2

You don't need to be defensive it was only a question not a dig, it looks azazle was asking because you could have meant you didn't have much of a credit history which isn't a huge problem, or it could have meant you had high debt or missed payments etc which would certainly cause a problem at a high loan to value.

karbar

true,

do you guys think what im planning to do is the way forward(in my case)? thats borrwing 10k from my parents so i become debt free and have a mortgage instead of paying rent and paying toward the loan ?
yes the APR is going to be a bit high, does this mean i should remotgage in future when my credit score is better?