90% LTV Mortages, Advice, Help, Suggestions Anything !

didnof

hi all, i'm looking to purchase a property and have some serious scrimping to do to get my deposit together. i've had a good look online for mortage deals and think i can stretch to 10%, but nothing really stands out as a great deal.

can anyone offer some suggestions as to which bank/building society can offer the best rates for a 90% LTV mortgage? any help is much appreciated as i'm struggling to find a bargain out there.

thanks!

molit

As far as I nkow 10% deals are still quite rare at the moment, but they do exist...personally, I'd find a mortgage adviser and let them do the work...it shouldnt cost you anything, and saves you a lot of stress

pixelina

cheers, that was my next plan. i think i've exhausted all the search sites and came up with not a great deal. you never know, someone out thre might have found an actual good deal, fingers crossed

Senior_Paper_Monitor

10% deposit and 'great deal' have as much in common as Christopher Biggins and martial arts I'm afraid.

At 10% deposit you will pay the penalty and be very grateful if they say your credit is sqeaky clean enough to be accepted.

chris180682

Hi,
We are getting a 90% mortgage at the moment too and there are a fair few. I've spoken to 2 brokers and searched extensively myself. Thr best i can find are as follows;
2 yr fixed, 5.15% Newcastle BS
3 yr fixed, 5.49% Nottingham BS
5 yr fixed, 5.69% Nottingham BS

The Nottingham ones have low fees too. There is the odd one better than these but only if you are in their local area and things like that, some deals depend on your circumstances, etc.

brit1234

Keep saving to 15%. House prices will be coming down at the same, so it will be quicker than you think. Plus your protected more from negative equity.

Trollfever

THE_GHOULS_BEDSIT wrote: »

errr...what? Prices are on the up.

Please everyone, don't be fooled by brit.

Do you really want to be taking property advice from someone who is nearly 40 years old and still lives with his Mum? No, of course not.

House prices fall for the eighth consecutive month

Experts predict prices will continue to fall as fewer people are getting loans and many are falling behind repayments.

http://www.guardian.co.uk/money/2011/mar/15/house-prices-fall-in-the-uk

CheeseCat

OP, I went with the Nottingham 5.69% fixed for 5 yrs (as mentioned above) the fees are quite low, no booking or valuation fee, £195 mortgage arrangement fee, £50 legal fee and £30 Bank transfer, £25 to use your own home insurance.

I thought it was better for the sake of a few 10th of a % to fix for a longer term.

Good luck!:D

boonkoh

To be honest, my philosophy has been that unless you expect house prices to rise in the near future, then it does not make sense to buy a property if the mortgage interest that you are offered is more than the rental yield of the property. This is because while the saying "rent is money down the drain" is common, the same can be said about interest - you're not increasing your equity with the interest paid (only with the extra principle repayment on top of the interest amount each month).

So if you expect house prices to stay stagnant or even decrease, its better to rent.
A) rental at 4%/year of the property price is better than interest at 4%/year. That's because with rental, all repairs and buildings insurance etc are covered by landlord and not you.
getting a mortgage means taking the risk/reward that house prices might fall/rise.
C) with rental, if you need to move, the only cost is a bit of time hunting for a new rental, and also moving vans. With property purchase, not only did you pay solicitor fees, mortgage fees, and stamp duty when you bought, you also need to pay EA fees and solicitor fees when you sell (and then the same fees when you buy your next property). These can add up to £'000s. And you might have alot more stress in the process, and it will take longer.

I realise these are all economic arguments, and that house buying has an emotional aspect too (you want a permanent place and stability etc), which is different for everyone and therefore depends on your situation.

chris180682

CheeseCat wrote: »

OP, I went with the Nottingham 5.69% fixed for 5 yrs (as mentioned above) the fees are quite low, no booking or valuation fee, £195 mortgage arrangement fee, £50 legal fee and £30 Bank transfer, £25 to use your own home insurance.

I thought it was better for the sake of a few 10th of a % to fix for a longer term.

Good luck!:D

We too went for this mortgage today, all straightforward and while the rate might still not be great it's by far the best 90% 5year fixed at the moment, especially when you take the fee's into account as mentioned above. We had a decision to make over whether to fix for 2,3 or 5 years but in the end the security of the 5 year won out.

chris180682

boonkoh wrote: »

To be honest, my philosophy has been that unless you expect house prices to rise in the near future, then it does not make sense to buy a property if the mortgage interest that you are offered is more than the rental yield of the property. This is because while the saying "rent is money down the drain" is common, the same can be said about interest - you're not increasing your equity with the interest paid (only with the extra principle repayment on top of the interest amount each month).

So if you expect house prices to stay stagnant or even decrease, its better to rent.
A) rental at 4%/year of the property price is better than interest at 4%/year. That's because with rental, all repairs and buildings insurance etc are covered by landlord and not you.
getting a mortgage means taking the risk/reward that house prices might fall/rise.
C) with rental, if you need to move, the only cost is a bit of time hunting for a new rental, and also moving vans. With property purchase, not only did you pay solicitor fees, mortgage fees, and stamp duty when you bought, you also need to pay EA fees and solicitor fees when you sell (and then the same fees when you buy your next property). These can add up to £'000s. And you might have alot more stress in the process, and it will take longer.

I realise these are all economic arguments, and that house buying has an emotional aspect too (you want a permanent place and stability etc), which is different for everyone and therefore depends on your situation.

I can see your point but it depends how much you pay off over what period. For example after my 5 years fixed is up I will then have 15% (as it stands now) equity in my property compared to nothing if renting so will have paid a further 5% on top of my 10% deposit but obviously this is all about not knowing what will happen in the future, house prices, rates, etc so there isn't really a right and wrong, each to their own.