We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
first time buyer with 5% deposit
nelsbells
Posts: 18 Forumite
i understand that the bigger the deposit you have,the better chance you have at securing a mortgage(and at a lower interest rate).at the moment me and my girlfriend have only enough money for a 5% deposit on a property valued at £125,000 and saving more money is a slow hard process as we are also paying rent and bills.we are not interested in a new build property either which would rule out the scheme that the government have started.
we have been to see a mortgage broker and she basically told us what we already know ,"bigger deposit=better chance of mortgage".she also told us that she only had 1 lender that did 95% mortgages.we are desperate to move out and have seen our perfect house but we are worried it will be snapped up before we can save 10%.our broker told us how much we could expect to borrow,quickly skirted over what interest only and repayment mortgages were and then fixed and variable rate.
she got a couple of quick examples up on her laptop(without showing us or telling us with which lender?)told us what the repayments over 30 years would be then ushered us out of the door and on our way ten minutes after we had sat down.it all seemed very quick and not very thorough.
i have since been doing a bit of research on the internet and 95% mortgages and come across lots of different mortgages that the mortgage broker never even mentioned.things like offset mortgages and discount mortgages and ones involving guarantors.i have also looked at a discount mortgage with leeds building society,but its very confusing!
can anyone please fill in the blanks for me and maybe give me some advise.any advice in fact!maybe someone else as been in a similar situation and can recommend a building society or bank and a particular mortgage.
im sorry that my post is so long and thank you for taking the time to read it.
we have been to see a mortgage broker and she basically told us what we already know ,"bigger deposit=better chance of mortgage".she also told us that she only had 1 lender that did 95% mortgages.we are desperate to move out and have seen our perfect house but we are worried it will be snapped up before we can save 10%.our broker told us how much we could expect to borrow,quickly skirted over what interest only and repayment mortgages were and then fixed and variable rate.
she got a couple of quick examples up on her laptop(without showing us or telling us with which lender?)told us what the repayments over 30 years would be then ushered us out of the door and on our way ten minutes after we had sat down.it all seemed very quick and not very thorough.
i have since been doing a bit of research on the internet and 95% mortgages and come across lots of different mortgages that the mortgage broker never even mentioned.things like offset mortgages and discount mortgages and ones involving guarantors.i have also looked at a discount mortgage with leeds building society,but its very confusing!
can anyone please fill in the blanks for me and maybe give me some advise.any advice in fact!maybe someone else as been in a similar situation and can recommend a building society or bank and a particular mortgage.
im sorry that my post is so long and thank you for taking the time to read it.
0
Comments
-
Saw the Estate Agent mortgage advisor then??
The issue here for you is knowing about mortgages is great, but your options are hugely limited given your 5% deposit.
There are about 8-9 providers of 95% mortgages and they are either fixed or variable. You will only get one of these if neither of you have ever missed a payment on anything for 6 years...
Hope this makes senseI am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it.This signature is here as I follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Mr Ham is 100% correct
- out of the various options you refer to: 'Offset' truly doesn't apply for you, 'discount' is another form of 'variable' (but with somewhat higher risk) and the only one worth knowing about is 'guarantor' - and that depends upon the position of your parents/family.
Frankly, it is an embarrasment that you have left a mortage broker (I suspect Mr Ham's guess on the 'nature of the beast' is probably correct) without a much better understanding rather than leaving you surfing the net for answers.
A good independent/whole of market individual broker will spend the time to ensure you understand the options - and what may/may not be applicable for you. Go find a better one.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
Don't forget you'll need a couple of £K for fees etc, when calculating how much money you need.0
This discussion has been closed.
Categories
- All Categories
- 346.5K Banking & Borrowing
- 251.3K Reduce Debt & Boost Income
- 451.3K Spending & Discounts
- 238.7K Work, Benefits & Business
- 614.1K Mortgages, Homes & Bills
- 174.7K Life & Family
- 251.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 15.1K Coronavirus Support Boards