When are going back to 10% or even 5% deposits

iandury

I think it is now widely accepted that property is not going to fall in value all that much if at all in the next few years. So why are new buyers having to cough up at the very least a 15% deposit.

I was wondering what the boards thoughts were on this, surely it cannot be long now before we are back to 10% then even 5% deposits, even more so now that the Government own a good chunk of some Banks.

Someone who am trying to help out at the moment get a second property has been offered a 85% mortgage with only one years accounts, thats the best she can get.

ChopperST

iandury wrote: »

I think it is now widely accepted that property is not going to fall in value all that much if at all in the next few years. So why are new buyers having to cough up at the very least a 15% deposit.

What makes you think property values arent going to fall may I ask?

Thrugelmir

iandury wrote: »

I think it is now widely accepted that property is not going to fall in value all that much if at all in the next few years. So why are new buyers having to cough up at the very least a 15% deposit.

I was wondering what the boards thoughts were on this, surely it cannot be long now before we are back to 10% then even 5% deposits, even more so now that the Government own a good chunk of some Banks.

Someone who am trying to help out at the moment get a second property has been offered a 85% mortgage with only one years accounts, thats the best she can get.

If someone is buying a second property then they are not FTB's . Also your friend is either a contractor or self employed so this will impact on the choice of lender.

Public ownership of some of the banks doesn't mean that lending rules are relaxed.

GGB

There's quite a few 10% deposit mortgages around now, I've even seen one for 5% deposit if you live in Wales

ferox666

iandury wrote: »

I think it is now widely accepted that property is not going to fall in value all that much if at all in the next few years.

Hahaha...you're joking, right?

Just wait for interest rate rises, further job losses and the public sector cuts to kick in. My friend's house has rose in value by 275% since 1997 - how much did salaries increase by? you think this is sustainable? The days of easy lending, e.g. 125% interest-only 40yr mortgages, that fuelled all this, are over.

If you can't afford a 15% deposit you can't afford to buy.

Rather than wanting to borrow more why not wait for the prices to fall, which WILL happen to this "bubble". Look at house price chart since the 1970s.

Conrad

iandury wrote: »

Someone who am trying to help out at the moment get a second property has been offered a 85% mortgage with only one years accounts, thats the best she can get.

90% does exist - but the rates are high and will only rise.

85% for a 'second' property and one years accounts is a fantastic offer, and nothing better will come along.
I'd be willing to bet they will be declined with 1 years books when it comes to FULL underwriting. Hardly anyone gets through with 1 years books, especially if they have another currently resi mortgage comittment, even if it is to be let out.

Lastly perhaps you have appluaded when Ministers like Vince Cable tell us we need a return to old fashioned lending principles. Well, he and the the FSA are another reason lenders cannot lend as freely as they are forced to hold a lot more in cash reserves now.

Ste.._2

There's plenty of 10% mortgages, Nationwide and HSBC for a start

There's also a 95% with the Clydesdale bank, but at a high rate

I'd say 85% on a second home is about as good as you can expect

DermotFlanigan

GGB wrote: »

There's quite a few 10% deposit mortgages around now, I've even seen one for 5% deposit if you live in Wales

Who is that with?

GGB

matthewandemma wrote: »

Who is that with?

Monmouth Building Society, need to be within certain post codes though

GGB

ferox666 wrote: »

Hahaha...you're joking, right?


If you can't afford a 15% deposit you can't afford to buy.

QUOTE]

I've never quite understood this, saving for a deposit is a lot different to meeting monthly payments for a mortgage, for startes its usually a short term targetted plan with a lot of cutting back on luxuries.

Thrugelmir

GGB wrote: »

I've never quite understood this, saving for a deposit is a lot different to meeting monthly payments for a mortgage, for startes its usually a short term targetted plan with a lot of cutting back on luxuries.

Demonstrates that the borrower has the ability to manage their money in a responsible manner. Regular saving creates a discipline .