90% deals - any good ones about?

buyinginbath

I'm losing the will to live. My husband and I are trying to buy a house in Bath. It's not the cheapest place to buy (by a long way), but we love it and I don't drive so really need to be living within the city.

We've managed to scrape together around £20k for a deposit (plus another £4-5k for the actual cost of buying) and looking at the prices are probably going to want something between £150k and £190k. This leaves us with 10% deposit on a whole range of properties but nothing larger on any of them. The rates on 90% mortgages are hovering around 5-6%, giving us repayments that are just about affordable for us now (£700 ish per month), but if the interest rates went up, we may struggle.

It's taken us years to get this much deposit together and a 15 or 20% deposit seems a very long way off. Any suggestions? Am I missing anything?

robin_banks

http://www.independent.co.uk/money/mortgages/lenders-reject-nine-out-of-10-applicants-ndash-welcome-to-the-90-per-cent-loan-2040523.html

You'll need an impeccible credit record to get one of these according to this piece.

GMS

90% deals are becoming increasingly hard to get.

If you are worried about rate rises you should look at long term fixed rates.

Speak to a 'Whole of Market' broker to see what is available.

riverboat2001

Try the post office, they have 5 years fixed and 90%ltv

TrickyDicky

it sounds like you need to find somewhere cheaper, or just save for longer. if you cant afford rate rises, you should not be buying (unless you can get a long term fixed rate).

Leon_W

Hey there fellow Bathonians !

I can quite agree that it is a lovely place to live but also VERY expensive !

I'll probably get shot down for mentioning shared equity but it might be worth searching for any developers offering schemes. Unfortunately it's not a city known for its newbuilds as being completely surrounded by Green Belt there is practically no room for building and the demand usually exceeds the supply.

All the best.