Nationwide 'Save to buy' 5%

Thrugelmir

inmortgagehell wrote: »

- money talks and the banks aren't really that interested in 95% mortgages.

But you've got debts.......... so yes money does talk very loudly in a lenders ear.

Professional

I've been on the Save to Buy since September.

So far so good. There's no guarantee of a 95% mortgage but by saving up over several months you are able to demonstrate your ability to keep up with mortgage payments hence making it more likely that you will get a mortgage offer of some sort subject to your individual circumstances. I agree with the person who said 95% might result in higher interest rates but thats the name of the game across all mortgages - the more deposit you put in the better rate you will get.

I would say its a good option to go for if you have the patience for 6-9 months, the ability to save good sums every month and you're not convinced of getting a mortgage through traditional routes.

Oh and btw when it comes to the specifics of the product you'd be better off talking to Nationwide directly then on here.

inmortgagehell

Thrugelmir wrote: »

But you've got debts.......... so yes money does talk very loudly in a lenders ear.

yes, but not unreasonable reckless ones. How many people are 100% debt free, and how does that have anything to do with our good incomes and ability to repay money? That's my argument.

Thrugelmir

inmortgagehell wrote: »

yes, but not unreasonable reckless ones. How many people are 100% debt free, and how does that have anything to do with our good incomes and ability to repay money? That's my argument.

I'm merely explaining how mainstream lenders will view the situation.

A very different thought process to those seeking to borrow money.

So have as many arguments with yourself as you like. But it isn't going to change an underwriters view.

ViolaLass

inmortgagehell wrote: »

yes, but not unreasonable reckless ones. How many people are 100% debt free, and how does that have anything to do with our good incomes and ability to repay money? That's my argument.

It has plenty to do with your income and your ability to repay money. At the moment, you're borrowing in order to be able to save and you haven't saved much.

guesswho2000

inmortgagehell wrote: »

yes, but not unreasonable reckless ones. How many people are 100% debt free, and how does that have anything to do with our good incomes and ability to repay money? That's my argument.

I agree, however I don't think lenders are necessarily not interested in the 95% market.

ViolaLass wrote: »

It has plenty to do with your income and your ability to repay money. At the moment, you're borrowing in order to be able to save and you haven't saved much.

I completed using Nationwide S2B, 94.78% LTV and have an outstanding personal loan taken out about 8 months ago for a car. The saving was completely separate and I didn't want to sacrifice the deposit we'd saved to replace a car I mainly use for work, but nonetheless am required to have.

So I agree with inmortgagehell's statement, I bet we're not the only people who've bought a house without being 100% debt free, it's income and affordability, based on Nationwide's assessment of our circumstances. Luckily we were able to borrow the required amount after repayments, however if I hadn't had the loan I'd have been able to borrow substantially more, an extra amount far in excess of the outstanding unsecured debt.