10% deposit

Crizzy

I was under the impression that the 10% deposit was coming back then I came across the following article on ThisIsMoney:

ThisIsMoney wrote:

Post Office and other lenders accused of window-dressing with 90% mortgages
By RICHARD DYSON

Mortgage lenders including the Post Office have been accused of seeming to offer home loans to borrowers with small deposits.
In practice most applicants are turned down and little money is lent on advertised terms, it is alleged by rival lenders and mortgage brokers.
Borrowers with deposits of 15 per cent or less have been virtually barred from the housing market since the credit crunch, despite repeated calls by the Government for lenders to help this group of mainly first-time buyers.

The Post Office, whose mortgage arm is backed by the stricken Bank of Ireland, has consistently offered attractive rates with deposits as little as ten per cent.
It has best-buy fixed rates over two, three and five years where homebuyers can borrow up to 90 per cent. But it is secretive about how much it lends on these deals and how many applicants it turns down.

As the loans are available only direct, rather than via brokers, there is no external data on lending volumes. Other lenders, such as the Yorkshire Building Society, also restrict their best low-deposit mortgages to customers who apply direct. It declined to produce take-up figures.
The Post Office denied any suggestion that its low-deposit deals were ‘window-dressing’ or ‘fake’ and told Financial Mail it was committed to growing its mortgage business.
It said four in ten successful applicants were first-time buyers borrowing 85 per cent to 90 per cent of the property price.
Overall lending figures paint a gloomier picture. In the second quarter just 1.5 per cent of lending was to borrowers with a five to ten per cent deposit, down from 9.3 per cent in 2007.

Has anyone had any recent successes with a 10% mortgage? Is it unrealistic to think that these deals are actually out there for the average joe?

The article doesn't say who is making these accusations so it may need to be taken with a pinch of salt.

GMS

I have done 90% LTV mortgages lately. Clean credit rating and good affordability is the key.

Crizzy

That's good to hear.

Credit wise I don't think there are any major issues except 1 missed CC payment in 2009 due to a genuine error and no debt apart from a student loan.

Looking to borrow roughly 2.5 x joint salary of me and my fiance. We just need to get out there and speak to some people I think.

Thanks.

mrsplinter

I was approved for a 90% mortgage this month and they agreed to lend 5 times my salary, but i didn't go for that much. I had no other debt. I had a missed payment last year when I changed bank accounts, the company I paid had agreed to remove this from my credit record when I discovered it earlier this year. I never checked again, so I don't know if they did. Before that I had a missed payment on a credit card five years ago when I forgot to pay the bill.

ssmith.73

mrsplinter wrote: »

I was approved for a 90% mortgage this month and they agreed to lend 5 times my salary, but i didn't go for that much. I had no other debt. I had a missed payment last year when I changed bank accounts, the company I paid had agreed to remove this from my credit record when I discovered it earlier this year. I never checked again, so I don't know if they did. Before that I had a missed payment on a credit card five years ago when I forgot to pay the bill.

Which lender was that, i'm looking at 90% mortgage, based on 2.5-3 x salary but struggling with AIP. Nationwide only offered 1.8x salary which is useless. HSBC have given AIP at amount I need but i've read they can be strict on lending.

Credit file is clean, but credit cards are 'maxed out' as on promotional rates so have stoozed on them until rates run out at end of 2012. Will this go against me though as might appear i've got high borrowings, even though the money is actually sat in ISA

GMS

You will not get high income multiples if you have credit card debts. A lender could not care less what interest rate you are paying, they will take 3% of the balance as a monthly commitment.

Repay the credit cards to give yourself the best chance. At 90% lenders are picky and will decline for minimal reasons. Carrying big debts is an easy reason to reject.

Evilm

I know someone who has just got a 90% mortgage even though the property doesn't have a 99 year lease. They are around. They did however end up with only two choices of lender.

Hughesy84

Try the halifax....they lend 5x salary

mrsplinter

That's who I went with.