Does 95% LTV Morgage still exist?

garth549

Back OT Halifax do 90% mortgages with a 5% vendor assisted deposit (so effectively 95% LTV)

Think you'll have to go through a broker though

Molehill

DannyboyMidlands wrote: »

This is a money saving website. No need to get all narky when I suggest that spunking 17 grand a year of your after tax income (22 grand before tax?) on rent isn't a very clever idea.

Yes ideally we wouldn't be were we are and mistakes were made - hindsight is a wonderful thing. I don't wish to hijack the thread but all I am trying to say is a 95% mortgage isn't always bad in my opinion. We are borrowing less than 3x my partners income, getting a place for £250k to avoid stamp duty and so we can overpay. The interest is less than our rent from the outset. Equally I am studying and should start work next year. We may end up in negative equity and it is a gamble but one we are willing to take. Also there is a point where you get fed up renting and want to actually own the place. We found a place we really like and it needs some work. It depends on scenario and individual situation but I just don't think 95% mortgages should be demonised.

DannyboyMidlands

I just get hugely frustrated that people spend so much money on rent and when questioned, throw their hands up and say "what else could I do?"

Good luck with your purchase.

Idiophreak

Just because I enjoy being flamed so much - have you considered approaching local builders to see if they're offering any shared equity schemes to FTBs?

You could get them to lend you an extra 20% deposit, so you'll get access to a decent rate and maximise your ability to save. You've then got (depending on the scheme) ten years to save up the 20% you borrowed. Be aggressive, get the loan paid off fast (you'll actually be crossing your fingers for the value to fall) and you'll be in a much better position than if you take a 95% LTV now....

Oh..and obviously...don't overpay just to get access to the scheme!

John_Jizzle

bought my house with a 95% mortgage 5 years ago. in process of selling and making a profit (fingers and everything else crossed)

LittleMissAspie

DannyboyMidlands wrote: »

I just get hugely frustrated that people spend so much money on rent and when questioned, throw their hands up and say "what else could I do?"

It's a good question though, what else CAN people do? We spent 5-6 years renting and saving for our deposit and I added it up recently and promptly wished I hadn't. It was something like £45,000 in rent that we paid in total. That's nearly half our mortgage and we certainly weren't living anywhere fancy, started off in a 2-bed flat on a noisy main road, then downsized to a 1-bed house that needed "modernising".

The thing is that house prices are so high that it takes 5-10 years to save a proper deposit, and people don't want to live in a mouldy leaky flat next to heroin addicts for THAT long. Most people have children before they've finished saving their deposit and you don't want to bring your kids up around mould and crime either, plus that pushes the amount of room you need up. I would have suggested that the OP rough it in a studio flat for a year or two but he's about to have a kid.

pjcox2005

DannyboyMidlands wrote: »

I just get hugely frustrated that people spend so much money on rent and when questioned, throw their hands up and say "what else could I do?"

Good luck with your purchase.

In the same way you get frustrated, this comment annoys and is just a one dimensional view. Why shouldn't you spend money on rent, I've quite happily for the last 4 years plus:

- Test out moving intogether with girlfriend.
- City centre living when the mortgage would have been too much.
- Haven't suffered the significant falls in property value the landlord has.
- No DIY
- Can now move out once ready in a good position as a first time buyer so no chain.

VT82

pjcox2005 wrote: »

- Haven't suffered the significant falls in property value the landlord has.
- No DIY
- Can now move out once ready in a good position as a first time buyer so no chain.

Good points.

LittleMissAspie wrote: »

We spent 5-6 years renting and saving for our deposit and I added it up recently and promptly wished I hadn't. It was something like £45,000 in rent that we paid in total. That's nearly half our mortgage.

Your maths might be right but your conclusion isn't. The vast majority of the first few years of mortgage payments are paying off interest. If you had been paying the mortgage with the rent money for the past few years, you might only have knocked a couple of grand off you mortgage.

When people say 'I would rather be paying off a mortgage than paying rent', what they really need to work out is whether the amount of capital they will have paid off in the timescale they expect to live there, plus the savings in monthly mortgage over monthly rent if applicable, is higher than the extra costs of owning rather than renting. So this amount of capital paid off, which most will over-estimate until the numbers are done for them, needs to be higher than maintenance costs, mortgage admin fees, stamp duty, estate agents fees etc. etc. Then they need to ensure this is still true if rates rise. There is also the toss up of house prices going up versus house prices going down.

Thrugelmir

VT82 wrote: »

In the case of the OP, with a bread winner earning what, 80 grand(?), it sounds like the right answer if the timescale is long enough. But if the salary really is more than a third of a mortgage that big, it does make you wonder why there is so little saved.

Lifestyle.........

A reoccurring theme on the board. Often influenced by what appears on the face of it to be an unplanned addition to the family.

Molehill

Thrugelmir wrote: »

Lifestyle.........

and/or payrise(s). Or many other potential reasons.