Do 90% mortgages exist for 2nd time buyers?

betmunch

ACG wrote: »

ignore this post.

will do buddy!

kaylz39

betmunch wrote: »

No, the best place to look is in a Independent Mortgage Advisors office!

If you dads mate is an IFA check that he is confident doing mortgages, a lot of IFA arent so they employ Mortgage Specialists or simply refer clients to someone else.

I agree with Dave Ham, a broker attached to the builder isnt likely to be the best, but they should know new build criteria like they wrote it themselves so dissapointed that this one couldnt place you with a 10% deposit.

You said you have until August to save up, and that you can get to 20% in 18 months, are you sure you cant scrape together th extra 5%? you dont even want to be applying until the summer so anything can happen. I'd get saving!

He is a mortgage broker and has worked within an estate agents so he's definitely a good place to start. Was just hoping to find a miracle on here as it's going to keep me up all night thinking about it...ha ha.

Yeah 18months would be about right, this year though we have a holiday to go on which we really don't want to go on. My hubby is a best man & me the chief bridesmaid at our friends wedding abroad- we really don't want to go as it's £2,500 but it would ruin our friendship with them. Plus stag and hen's and gifts etc. We've thought and thought about it, believe me.

The house is ready in August, to move into. They're saying we would exchange contracts in April/May > do you think this is about right? I'm almost considering saying to them, can we move in in Jan 2013 to give us a few extra months.

Dave_Ham

Rather than trying to find something that may not be there in terms of a mortgage, why not offer up some creativity as an investment.

Offer a familly member or close friend the opportunity to earn more than they could saving - you will know savers.

Thinking out loud - For £5k investment you will give them 20% of the rental yield on both properties for x years returning £6k for example. Then rent these and manage them yourself saving you 1 month finders fee and 10% a month management fees and the loan is therefore self financing. Ignore the numbers, you get my drift borrowing now on your future saving/earning potential.

Builders gifts have been abused in the past. If a house is worth £250k and you get a builders gift of £10k. Is the house worth £240k or £250k further down the road to the next buyer...?

Thrugelmir

kaylz39 wrote: »

Yes they do but I don't think it would help, we would loose the 5% they were going to give us towards the deposit.

The developer isn't giving you anything in monetary terms. Except offering an overpriced house.

Thrugelmir

kaylz39 wrote: »

Plus we probably wouldn't have much equity in our home, we bought it 5 years ago when the property market went mental and now it's on its a***e it doesn't help us.

Then walking away. Fingers crossed that it will be profitable renting it out. In the hope that the UK property markets recovers in the future. Is a huge gamble.

Personally I would suggest tackling the problems you have head on. Potentially far more productive.

kaylz39

Thrugelmir wrote: »

The developer isn't giving you anything in monetary terms. Except offering an overpriced house.

That was really helpful, thank you!

kaylz39

Dave_Ham wrote: »

Thinking out loud - For £5k investment you will give them 20% of the rental yield on both properties for x years returning £6k for example. Then rent these and manage them yourself saving you 1 month finders fee and 10% a month management fees and the loan is therefore self financing. Ignore the numbers, you get my drift borrowing now on your future saving/earning potential.

Yes we were actually thinking of that, just in a simpler way i.e. give us £7,000 & we'll pay you £8,000 back within 12 months.

Its my Hubby's Dad were thinking of asking, it's just asking him though. I know he has the money to give us as he's mentioned it before in the past.

GMS

Ask your adviser to check the figures on the property you want to rent out too. Rent needs to cover the mortgage by 125% generally. Do you/will you have consent to let from current lender?

Make sure any proposed lender for the new property is happy with the rented property in the background and make sure that this does not restrict lending on the new property either in terms of maximum LTV and/or affordability.

kaylz39

GMS wrote: »

Ask your adviser to check the figures on the property you want to rent out too. Rent needs to cover the mortgage by 125% generally. Do you/will you have consent to let from current lender?

Yes we have spoken to them already and yes they've okay'd it. Would that be the case if we were to have interest only repayments also?

[/QUOTE] Make sure any proposed lender for the new property is happy with the rented property in the background and make sure that this does not restrict lending on the new property either in terms of maximum LTV and/or affordability.[/QUOTE]

We are both actually on good salary's and don't have many outgoings between us in terms of credit cards and loans so affording it isn't the problem.

Saving it is just so b1uddy hard!!!

hezza86

Kaylz39,
its nice to hear of someone in a similar position to me and my fiancee. we own our flat, and werent planning on moving till next year,howeve like you saw a very nice new build at a very good price. But we cant get the rental on our current place so would need to sell, and thanks to the crap market dont think we could get enough to clear our current mortgage then the issue our current lender will only give us 80% and we dont have that kind of money for a deposit, in fact we have no deposit we were looking at a loan through the parents, spoke to an IFA today who told us 85% is the most she could get us, which is still alot bigger deposit than we wanted to take out, we ideally wanted a 90% mortgage like you but cant seem to get one.
So we may have to let the house go and its the last one on the estate (which is why its going so cheap)
we even looked at part exchange with miller homes but they dont think they can offer us enough to clear our mortgage.
Im so angry with the whole thing, as we can afford the new mortgage no probs but cant move and are stuck in our current place which we have outgrown and we want a family home. (we get married in july)
We'd be better off a first time buyers, they get all the good mortgage deals, which infuriates my other half.