Comments on this method of getting a 95% mortgage?

markalanious

http://www.e1buytoletmortgages.co.uk/news/first-time-buyers-mortgages/95percent-ltv-mortgage-available-to-first-time-buyers-with-nationwide-4508.html

I'd be interested in people's opinions on the link above. Basically, open a nationwide savings account and keep it for 6 months to qualify for a 95% LTV mortgage.

Please bare in mind when commenting that some people are happy with the inflated APR costs of a 95% mortgage and this shouldn't be a slanging thread based on people who 'want it now'

Thanks

Mark

beecher2

I think your first paragraph is inaccurate as people won't automatically qualify for the mortgage. I'd imagine very few people would be offered the 95% deal - only those with perfect credit and low salary multiples.

GMS

After 6 months account holders will be ELIGIBLE TO APPLY.

This does not in any way shape or form mean the account holders will qualify for the mortgage easier.

Usual checks will apply and credit scoring will need to be passed which is likely to be very high.

Thrugelmir

Saving £50 a month for 6 months is unlikely to gain you approval.

hillcats

sprat to catch a mackeral.
All they are doing is drawing in investors whilst giving a "glimmer" of hope...

Thrugelmir

hillcats wrote: »

sprat to catch a mackeral.
All they are doing is drawing in investors whilst giving a "glimmer" of hope...

The £1,000 cash back on savings of £10,000 is a reasonable incentive to future borrowers. Despite the low interest rate on the account. This helps pay the legal fees of the purchase.

markalanious

Yes apologies, you qualify to apply - not qualify for the mortgage.

So are chances of getting a 95% mortgage slim? I have no adverse credit in the last 6 years, nor does my partner. We'd be looking at borrowing about 2.5 times our annual salary (combined).

hillcats

Thrugelmir wrote: »

The £1,000 cash back on savings of £10,000 is a reasonable incentive to future borrowers. Despite the low interest rate on the account. This helps pay the legal fees of the purchase.

I obviously missed that bit - sorry.
Not bad I agree, but most will not have 10k...

JQ.

Telephone the bank and ask them. There's not point wasting 6 months hoping to get a certain product if it transpires you were never eligable from day 1.

Thrugelmir

hillcats wrote: »

I obviously missed that bit - sorry.
Not bad I agree, but most will not have 10k...

The savings account is available for up to 3 years. So should be an achievable target.

Thrugelmir

markalanious wrote: »

So are chances of getting a 95% mortgage slim? I have no adverse credit in the last 6 years, nor does my partner. We'd be looking at borrowing about 2.5 times our annual salary (combined).

The income multiple would certainly be in your favour.