First Time Buyer Mortgage Advice - 10% deposit

jojooneill

Hi,

I would be grateful for any advice on 90% LTV mortgages. We are currently seeking to buy the house we rent for around £115,000/£120,000. We currently have £5,000 deposit and hope by April we will have the required £12,000 (or higher) needed. The landlord plans to put the house on the market next week so we are hoping that by April it isn't sold (I am hoping although realise it may not work in our favour!).

I have seen a mortgage from HSBC for around £536 per month 3.9% discounted. with no fees but, from reading the forum, am aware they are very selective. I am contacting them to check this. I have also tried the Graduate lending programme which also offers rates of approximately 3.9% with no fees.

I have contacted two mortgage brokers so far but the best on offer appears to be £650-£750 per month.

Is anyone aware of any schemes for first time buyers (other than Lloyds TSB Lend a Hand?) that help people with just a 10% deposit?

Although I am obviously seeking advice, any further advice from the forum would be greatly appreciated. Many thanks for your time.

bigadaj

Would be helpful if you included incomes, outstanding debts and any historic credit problems.

jojooneill

Hi,

We have never had credit cards, store cards or loans so we don't have any debt or credit problems or any outstanding debt. We are both employed full-time (permanent contracts) and have a minmum combined income of approximately £42,000. According to Halifax we can borrow in excess of £180,000 (although I have no wish to do so).
Many thanks for your time.

ACG

Nationwide do a scheme that may be of interest.

Rate wise HSBC/First Direct im not sure many people can compete with. The advisors you have seen are probably whole of market so dont include the likes of HSBC.

If you want the better rates you have to meet the stricter criteria. If your credit history is fine then i cant seen you having too many issues, if you have missed/late payments or worse then you will struggle with HSBC and will need a lender with the higher rates.

GMS

Never having had any credit will potentially cause issues for credit scoring.

When applying try going for 89.9% rather than 90%. It can often make scoring easier to pass as mad as it sounds.

jojooneill

Hi,

Many thanks for your advice. Would applying for a credit card with no monthly fee (but not using the card) increase my credit score for mortgages or would I have to be seen to pay off the card every month for this to affect my score?
I will also try the 89.9% mortgage on sites rather than 90% - thankyou!

GMS

Having credit shows an ability to maintain it assuming it is done so. Using a card to pay for purchases and clearing the balance each month will help credit scoring.

As you have up until April it is worth doing as it will be in place and on credit files by then.