Advice - a 95% or wait for 90%? Please help

callmechar

Have a DIP for Skipton 95% mortgage...however it works out expensive and I am just not sure about a 95% mortgage. If we save more, it means another year or two (OH is mid 30s, I am late 20s). Whats eveyones opinions of 95% mortgages? Too risky?

Thrugelmir

The risk depends on your personal circumstances i.e. security of job and income along with your view of the property market.

If it will take you another 2 years to save a further 5%. Then suggest you review your personal expenditure and make a determined effort to save more.

House ownership does come with additional expenditure besides the mortgage.

callmechar

Thanks

We have planned and planned again! Even with the house we will have some money left over each month...but more money left over if the mortgage is 90% and also less mortgage (especially if prices do fall as many predict). If they rise we may miss the boat...its all so scary!

If we have a 90% mortgage our choice of the market is a lot wider

Also VERY worried the only bank doing the 95% are Skipton who the fixed rate deal ends in Nov 2013 and then its 4.5% plus base rate which if interest rates rise is VERY scary!

Thrugelmir

callmechar wrote: »

Also VERY worried the only bank doing the 95% are Skipton who the fixed rate deal ends in Nov 2013 and then its 4.5% plus base rate which if interest rates rise is VERY scary!

I agree. Many years ago shortly after I bought my first property. Interest rates rose by 1% for 4 consecutive months from 10 to 14%. Taught me to take a long term view of property purchase.

Better to be cautious and certain. Than take unnecessary gambles.

callmechar

Thrugelmir wrote: »

Better to be cautious and certain. Than take unnecessary gambles.

Thanks....great advice :j

wackorash84

callmechar wrote: »

Thanks

We have planned and planned again! Even with the house we will have some money left over each month...but more money left over if the mortgage is 90% and also less mortgage (especially if prices do fall as many predict). If they rise we may miss the boat...its all so scary!

If we have a 90% mortgage our choice of the market is a lot wider

Also VERY worried the only bank doing the 95% are Skipton who the fixed rate deal ends in Nov 2013 and then its 4.5% plus base rate which if interest rates rise is VERY scary!

be warned! You wont be paying on your mortgage only. You normally need to have a building insurance. Extras include life, critical illness and payment protection insurance. These could easily come up to £100 extra a month on top of your mortgage.

Also you'll need to have money aside for emergency like plumbing issues, boiler issues etc.

Also the Skipton 95% mortgage svr is quite high once your fix rate ends in September 2013. Unsure whether you'd finish paying another 5% equity should you want to re-mortgage to another deal at that point.