Best 90% mortgage deals

cainington

Hi guys

I was wondering if any of you good people could provide any advice on availability and affordability of 90% mortgages.

My wife and I have a combined salary of £51, 500 (part time and full time teacher) and we are looking to buy a property with a value of £240,000 - £249,000. We have a £25k deposit and moving costs are also covered.

Are there any good deals out there that you know of that allow us to borrow the "215,000 with a competitive repayment rate over 25 - 35 years?

Thanks, it's much appreciated!

ACG

I cant tell you any lenders as its not something were able to do on here, but if you go and see an independent mortgage advisor they will be able to point you in the direction of some of the better deals presuming your eligible for them.

It might cost you a fee but on the figures your talking it would probably pay for itself.

carlw

Hi,

Im in very similar situation, I have just sold my house, and looking for 90% LTV mortgage on £210k house (have 21k deposit). Very similar salaries.

The best deal i have found is HSBC discount mortgage, fee free, 3.84%.

Im currently with First Direct, and they offered me a deal of 4.89% 2 or 3 year fixed. And i have also been to a broker, who couldnt even find a deal better than the first direct one.

Good luck, let me know if you find anything better.

Carl

cainington

allyThanks guys.

Carl, that info is really useful . However, we were under the impression that HSBC wouldn't lend us the amount reqquored based on our salaries. Did you call them and were they helpful.

Paul

Whirlybob

Well, taking a random guess at your salary split and entering it into the lending calculator on firstdirect.com (it just happens to be one which doesn't ask any real details - I'm not recommending them or anything like that), they say they'd lend £206,000 for a salary of £31k and £20.5k. Compared to the handful of other lenders I've been looking at for our plans, 1st Direct seem to be a bit on the low side when it comes to what they'll lend so you might get away with it if you can find someone more generous.

I'd go around all the various mortgage providers and use whatever online tools they give you. Ring around and ask - they didn't ask for any personally-identifiable information when running up a quote, so it can't count as a credit search on your credit file.

I called a random local Nationwide branch and they did an an affordability quote on the spot. It took around 15 minutes and I asked a lot of questions!

Also, I guess these are rather rough figures that they give - how much they differ from reality when you actually go to them with your full details, I don' t know...

carlw

cainington wrote: »

allyThanks guys.

Carl, that info is really useful . However, we were under the impression that HSBC wouldn't lend us the amount reqquored based on our salaries. Did you call them and were they helpful.

Paul

Hi,
Yes ive rung both First Direct, & HSBC, and went through all the salary & affordability criteria. They offered to lend me exactly what i asked to borrow (£189k) based on the fact i only have a £21k deposit, and they would only lend 90%. So i dont know if i had a larger deposit what they would lend me based on our salaries. First Direct said its usually between 4 and 4.5 joint salaries, but again only offered £189k based on our deposit, and that this was the amount i was asking to borrow. You are best off ringing them and going through everything. They dont do a credit check at this point, so it does no harm. Took about and hour to go through though.

Good luck.

malcolmffc

Yorkshire Building Society and Chelsea Building Society had great fixed rates (4.64% and 4.59% for 3 years) on 90% LTV mortgages when we were applying last months. These were the best I found for fixes. With Yorkshire an added bonus is that you only pay £195 of the £995 fee upfront, so if the sale falls through you're only down £195 (the remaining £800 is paid on completion)

Unfortunately I think their rates have since slightly increased.