The Nottingham Building Society 95% mortgage

net78

The Nottingham are offering 95% mortgages.
Shame I'm not in the position to buy at the moment,this would have been ideal. he ho never mind!

xyellowx

if true ,how long till the 100% are back ? some people just never learn

Cannon_Fodder

Higher Lending charge of 9.19%. So, £9k for a £100k mortgage.

http://www.thenottingham-intermediaries.com/pages/residential-lending-criteria#HigherLendingCharge

It can be added to the outstanding amount...very generous of them...to give you their £9k and charge you 6.39% on it.

Instead, you could save a bit longer and earn interest on your growing deposit...

Trouble is, inexperienced FTBs will just think whoo-hoo! and not read the small print, let alone understand it.

Beast

At 6.39% I can't see how this is likely to help any FTB - if you can afford to pay the larger mortgage payments required by this interest rate, you could afford to save a decent deposit in the first place.

xyellowx

most ftb dont know what there signing up for or how much it will cost in the long run
the trusted banks the ftb has dealt with since a toddler and received plastic piggy banks for the last 20 years doesnt become untrusting till further down the line

Cannon_Fodder

xyellowx wrote: »

the trusted banks the ftb has dealt with since a toddler and received plastic piggy banks for the last 20 years doesnt become untrusting till further down the line

As seen here; https://forums.moneysavingexpert.com/discussion/2668475

net78

Mmm not so ideal then, carry on with the saving then.

opinions4u

Cannon_Fodder wrote: »

Higher Lending charge of 9.19%. So, £9k for a £100k mortgage.

It depends how they calculate it.

Is it 9.19% of any borrowing over 80% of value?

In which case a £100k house with a £95k mortgage would trigger a HLC of £15k x 9.19% = £1,378.50.

Cannon_Fodder

OP4U - you could be right. But as they don't explain it, how can anyone know?

RBS do explain theirs; http://www.rbs.co.uk/personal/mortgages/g3/legal-info.ashx

"The maximum amount you can borrow, and whether you are required to pay a higher lending charge, depends on the percentage of your loan to valuation of your property. The premium will be charged on the amount of the loan above 75% of the purchase price, or valuation if lower."

Using the RBS method, in case it is similar, comes to £1,838.

I would hope the FSA would have something to say about such a lack of clarity.