90% Deposit - what's the best mortgage option?

maggiemy

Hi,
I am due to buy a home at £200,000 with a deposit of £190,000. I would like to keep the remainder as a mortgage. I currently have a mortgage on my current home but wish to move companies. I would appreciate any advice?
Thanks in advance
Maggie

kingstreet

You want a £10k mortgage? You have a £10k deposit? 10% of £200k is £20k. 90% deposit?

What sized mortgage do you currently have?

I'm confused.

GMS

If I had 190k cash and wanted to buy a place up at 200k I would be offering 180k cash to start with. Super quick completion promised as part of the offer.

No way would I be looking for a 10k mortgage which is below lender minumum for most lenders anyway.

maggiemy

I made a large profit on my last two properties with the current being worth in excess of £360,000 with a mortgage of £125,000.
Therefore I want to buy a house at £200,000 and pay £180,000 - 190,00 up front, keep a little in the bank for savings, repairs and paying off debts hence wanting a small mortgage.
I have offered a lower price but the sellers aren't budging and I need to sell my current house first.
A 10% mortgage probably is unaailable. As I say just looking for advice.

kingstreet

Ok. So you want a mortgage of between £10k and £20k depending on what you pay for the property?

Are you looking for something where you have the certainty of knowing what your payments will be? If so, how long for?

Are you likely to want to pay the mortgage back more quickly than the agreed term?

How do you feel about variable rates and having payments which can change?

maggiemy

Hi there, certainty of payment is not so important and period can be anything up to 25yrs.
Probably would pay back within time period and variable rates are fine.
Just for background I live in the HIghlands of Scotland there was a property boom in the lates nineties where I made a good profit on renovating victorian properties.
thanks again.

kingstreet

In which case, look for a good tracker product. If you pick something penalty-free, you can increase what you need, to reach the minimum loan for the best deal, then repay the extra once completion has taken place.

At this size of mortgage, a deal with no fees to pay and a bit of a cashback will probably suit you better than a low rate, high fee alternative.

If you decide you would like to fix after all, there are similar fee-free options, but the borrow more, instant repay idea won't work because of the early repayment penalties.

Obviously a drop of water to go under the bridge if you have a property to sell before you can proceed, but if you need anything else, post back in this thread so the story builds up over time...

You also mention your current lender and wanting to move. It may be worth considering porting the rate from your old mortgage to a new one if there's an attractive rate, or follow-on option which may suit you better than a new deal from a new lender.

maggiemy

That is very helpful.
I am putting my home on the market in three weeks and will contact both another mortgage company, like HSBC (rated high in mortage providers though not for our deposit amount) and also our own lender Webb Resolutions (taken over from GMAC).

Although we are already with them (my partner and I were both self-certified/self-employed and with fairly poor credit) you may understand why we would like to go to a reputable bank/BS as our credit is fine now.

The options on mortgage types is very good so we will go forward on that info.
Keep MSE / kingstreet posted for definite :T

kingstreet

maggiemy wrote: »

That is very helpful.
I am putting my home on the market in three weeks and will contact both another mortgage company, like HSBC (rated high in mortage providers though not for our deposit amount) and also our own lender Webb Resolutions (taken over from GMAC).

Although we are already with them (my partner and I were both self-certified/self-employed and with fairly poor credit) you may understand why we would like to go to a reputable bank/BS as our credit is fine now.

The options on mortgage types is very good so we will go forward on that info.
Keep MSE / kingstreet posted for definite :T

Ok. I can see why you wish to leave your current lender. :eek:

Thrugelmir

Why need clear your debts totally? Then obtain a mortgage for the amount required.

maggiemy

Basically I do not wish to put all my money into this property and be left with having to borrow money whether secured or unsecured to upgrade it - hence retaining 10k onto mortgage. I put every penny I had (made on previous) into my last property and needed borrow again.
Not every situation is straightforward I have CT, solicitor debts ect.