95% mortgages where to start

matt2877

Hi all, me and the girlfriend are hoping to get a mortgage together soon as we have a baby due in december, but are unsure on our chances of getting one. We only have savings of roughly £5000 and would be looking at getting a mortgage of somewhere between £100,000 - £120,000, I realise that alot of banks still want 10% deposits but time is not something we have on our side.

Is the best thing to do just book an appointment with a mortgage advisor and go through the process of applying for one and see if a) they will be willing to give us a mortgage and b) for how much

We are both first time buyers, I earn £22221 per year and this year my girlfriend will earn roughly £6000 taking into account maternity leave and other factors.

Is there a certain bank that it would be best to see first or are they all similar? Any advice appreciated, thanks very much

R_P_W

Hi, not wanting to be a downer but you really will need minimum 10% deposit. The £5k you have saved will very quickly be swallowed up by fees and moving costs.

95% mortgages are available, however you need to be sqeaky clean in terms of financial history and meet some very strict lending criteria.

All the lenders are slightly different, so I would go and seen an independent broker and see what might be available - but personally think very long and hard about it as your personal situation will mean your income reducing but your costs will be increasing.

matt2877

Thank you. Any idea which banks currently do 95% mortgages?

Dave_Ham

You need spotless credit histories and you will have options at 95%

Typically with building societies

chambta

Nottingham BS certainly do them.

matt2877

Thanks guys, the only thing i can think off that may affect my credit history is i had some bank charges a couple of years ago for going into my overdraft, will this count against me?

chambta

matt2877 wrote: »

Thanks guys, the only thing i can think off that may affect my credit history is i had some bank charges a couple of years ago for going into my overdraft, will this count against me?

Almost certainly not in my opinion.

matt2877

Thanks for your help

Milliebob

Yorkshire Bank are doing them too, fee free at the moment I think

PHILIP1193

Is buying a house really the best thing to do with a baby coming along. Babies certainly aren't for free and I'm worried if you'll be able to keep up the repayments on such a low income on that mortgage amount.

Do a soa and stick it here so we can see if your being realistic with figures your intending to live off.

Phil