95% mortgages??

creamegg112

Hi,

Me and my partner currently have approximately 11 thousand pounds worth of savings, the house we have seen is worth £139000. do companies still offer 95% mortgages??? i am new to all this and it is very confusing with all the fixed rates, tracker rates?? i have heard about the concessionary deposit mortgages, has anyone ever done this? is it fraud?? is it actually called concessionary deposit where the house is valued at one thing on paper but you pay less or something...??

Further advise on all queries above would be very much appreciated.

Thank you
Chrissy

opinions4u

Lender's that are rumoured to do 95% mortgages include Yorkshire Bank, Clydesdale Bank, Nottingham Building Society and Skipton Building Society.

That said, they will cherry pick the best possible customers and charge a rate that reflects their higher risk.

Personally I would suggest trying to get a 15% deposit together. This will give you access to more lenders and far better interest rates.

creamegg112

its so hard to save this sort of money without the bank of mum and dad.

Thanks for your advice xxxx

GMS

creamegg112 wrote: »

its so hard to save this sort of money without the bank of mum and dad.

Thanks for your advice xxxx

See if you can find a property with a 5% deposit from the vendor. May help you. Otherwise look for something cheaper which makes your deposit a minimum of 10%

creamegg112

GMS wrote: »

See if you can find a property with a 5% deposit from the vendor. May help you. Otherwise look for something cheaper which makes your deposit a minimum of 10%

In relation to your reply is this that thing where it on paper it looks like you are putting 10 percent but you are only putting 5 percent down etc is this not fraud? xxx

GMS

creamegg112 wrote: »

In relation to your reply is this that thing where it on paper it looks like you are putting 10 percent but you are only putting 5 percent down etc is this not fraud? xxx

NO. Some lenders will allow the seller to pay towards your deposit.

You put in 5% as does the seller. This is declared to the lender up front. Incentive for the seller and for the buyer.

Not all lenders will allow it though.

Fraud is when it is done without full declaration.

If you were to lie about the source of deposit and falsify figures it would be fraudulent. I 100% would not condone anything fraudulent.

jamesd

creamegg112 wrote: »

In relation to your reply is this that thing where it on paper it looks like you are putting 10 percent but you are only putting 5 percent down etc is this not fraud? xxx

The difference between fraud and not is full disclosure.

In the past there were many cases where newbuild flats had undisclosed sale prices below advertised price but where a valuation at the advertised price was used. It's now been made very clear that this is completely unacceptable. But disclosing the same difference and calling it a vendor-provided deposit is acceptable, as is a vendor lending the money for the deposit, though the repayments will need to be considered in affordability calculations.

One reason for 95% mortgages being harder to obtain and more expensive is that past data shows substantially higher than usual default rates for them than at lower LTV.

GMS

jamesd wrote: »

The difference between fraud and not is full disclosure.

In the past there were many cases where newbuild flats had undisclosed sale prices below advertised price but where a valuation at the advertised price was used. It's now been made very clear that this is completely unacceptable. But disclosing the same difference and calling it a vendor-provided deposit is acceptable, as is a vendor lending the money for the deposit, though the repayments will need to be considered in affordability calculations.

One reason for 95% mortgages being harder to obtain and more expensive is that past data shows substantially higher than usual default rates for them than at lower LTV.

A vendor deposit is not acceptable to all lenders and a borrowed deposit from the vendor would not go down well. Lenders would not like a borrowed deposit and would decline in almost all circumstances.

A vendor 'gift' of 5% may be possible but it would need to be non repayable.