95% Mortgage

flizz2

I am currently renting but looking to purchase my first home. I put an offer on a property last week and am hoping to find out tomorrow whether offer is accepted (or more likely rejected!).

I have approx 10% deposit saved, however, when I last spoke to a financial advisor they mentioned that there were a few 95% mortgages back on the market. If I were to put down 10% I would leave myself without any spare cash to work on the house so am keen to go with the 95% option, despite the higher interest rates.

Just wondered whether anyone has applied for a 95% mortgage recently and likelihood of being accepted - my landlord recently told me lots of mortgage applications are declined for no reason...not sure whether that was just to put me off buying!

opinions4u

95% mortgages tend to be few and far between, offered by niche lenders for limited postcode areas / existing customers only with high prices.

Lenders known to have offered them in the last year include Nottingham Building Society, Skipton Building Society, Yorkshire Bank and Clydesdale Bank.

Where I've seen prices it's been clear that within 3 years you will have paid more than the 5% deposit "saved" in additional fees and interest.

In other words, keep saving hard and take a cheaper rate at 90% LTV.

m00m00

the Nottingham Deal is limited to certain postcodes only, and is 6.39%

fees are not bad, interest isn't great, but knowing this market as well as I do, the chances of having the property reduce in value over 3 years is very high.

Definitely worth going for the 90% LTV as it opens you up to far more deals, with less conditions

flizz2

My other reason for holding back 5% was incase house prices fall as you suggested.

When I come to remortgage after set period (say 3 years), if I have put all my savings in at the start and house has fallen in value I could be looking for 100%+ mortgage. Would having kept 5% back mean that I could still get a 95% mortgage?