95% mortgages?

tinkerbell1986

My husband and I are hoping to start saving for a deposit on a house in the new year but with house prices as they are we need about £20k for a 10% deposit with a little spare for fees and as we can only really save about £1000 per month this is going to take nearly 2 years

My mother in law recently said she'd heard that 95% mortgages were returning which would help us out so much as we really want to get out of our rented house ASAP. But she can't remember where/how she heard this and I can't find anything about it.

Does anyone know if it's true? x

theartfullodger

a) What is available today as mortgages may not be the same as what is available as mortgages in 6, 12 or 24 months time...
b) Start saving: Start cutting down on spending...
c) Welcome to the real world

Cheers!

Artful

myhouse_2

Yes, there are some 95% mortgages, but they have enough strings attached to ensure that the people who actually need them won't get them. Forget about 95% for at least 1-2 years minimum.
The brighter side though, is that you are exactly the kind of person who is priced out of the market at present - this will inevitably cause prices to fall over the next months and probably at least 2 years which will bring prices back into first time buyer range.
Not much good if you want a house now, but best to sit back and focus on saving a deposit.

sonastin

2 years is no time at all in the grand scheme of things. Focus on cutting spending and saving as much as possible for the next 12 months and then start looking at what sort of mortgages are available and what sort of houses you could afford to buy at that time. It can easily take another 12 months to find the right place at the right price, and all the while your budget will be growing and more properties will be becoming affordable...

Henry_P_Chester

95% mortgages never went away. They are just so expensive that they are not worth even considering. By not waiting to save a half decent deposit now we cost you tens of thousands of pounds extra over the term of the mortgage.

I believe skipton financial do one the rate is fixed for two years at 7.12% before reverting to base rate +4.99% so when base rates return to normal of about 5 or 6% you'll be paying 10% or 11%

You'll save yourself a fortune by waiting and saving for a few years.

SG27

2 years is nothing! We have been saving for over 6 years now and have nearly £100,000!! :j so easily a 50% deposit we no have our pick of the mortgage Market and will have nice easy affordable repayments
Just keep saving!

dizziblonde

We looked into 95% deals - they were so tightly restricted in terms of income, income multiples, cruddy rates that we decided not to bother - mother-in-law very generously upped our deposit to get us into the 90% bracket where so much more becomes open up to you.

Look into them by all means, but look around as well at the 90% deals - the difference is marked.

tinkerbell1986

Thanks for the info! Save save save it is for the next couple of years :S

Our rented house is a two up, two down with lots of problems and I am so desperate to move into somewhere bigger and nicer but I suppose I'll have to wait.

I'm not sure what you meant by "welcome to the real world" theartfullodger. I am well and truly in the real world thanks but just know little about mortgages as I've never had one before. And I also don't understand, myhouse, why I am priced out of the market. In terms of deposit yet but in terms of getting a decent mortgage we should have no problem and could easily afford the repayments.

While we're on the subject of cutting back and saving money, if I tell you our monthly incomings could anyone help me on where we could save?

Total monthly income approx £3500 (my salary sometimes varies slightly up or down though depending on how much overtime I do and how many night shifts, weekends, etc)

Outgoings;
£480 rent
£110 council tax
£40 car insurance
£9 laptop insurance
£26 water
£12 tv licence
£19 union membership (for work)
£20 gym membership
£12.50 contact lenses
£5.00 ps3 insurance
£13.00 bank account charge (gives us high interest on all accounts, particularly savings accounts, mob phone insurance, travel insurance, etc)
£25 my mob phone bill
£35 husband's mob phone bill
£200 my car (I know you wont like this but it was a treat to myself when I graduated uni and got my first job and I can't do anything until next June. It is on a contract hire type thing and I will buy it on further finance in June and repayments should go down to about £150)
£60 gas and elec
£38 broadband and home phone
£5 to the RSPCA
£17 lettings and contents insurance
£300 food
£150 petrol
£500 (£250 each) as disposable income for nights out, clothes, toiletries, haircuts, people's birthday presents, etc (:-S)

Total is £2076. Then we tend to keep an extra £200 for unforeseen things (cats vet bills, work needed on cars, etc) and then we are able to save £1000 to £1200.

Any help much appreciated (don't be too horrible though haha)!

mcc100

tinkerbell1986 wrote: »

Our rented house is a two up, two down with lots of problems and I am so desperate to move into somewhere bigger and nicer but I suppose I'll have to wait.

I would suggest that you take a look at other properties available for rent in your area.

Why stay in a house that you are unhappy with for the next 2 years or longer?

Certainly in my area there is a great choice of rental properties, particularly on the new build sites where the developers are renting out properties at very good rates as they are unable to sell at the moment.

poppysarah

You spend too much! You could be saving tons!

lowlandsmatt

Just to say I'm in the same boat(in rented and trying to save for a deposit) so you're not alone. I've been keeping an eye on house prices off and on the last 4 years and it wont be long before they are slightly more sensible in some areas.

Not an expert on this site but I think you need to post your income/outgoings (otherwise known as SOA) elsewhere (Debt Free Wannabe section?)

Oh and I was going to post something 'funny' about the PS3/laptop insurance :rotfl:but then I see you also donate to the RSPCA :beer: so I wont mention it - best of luck!