95% LTV mortgages

Jake07

HI everyone,

I was wondering if everyone has taken advantage of the recently advertised 5% deposit only mortgages.

I am realistically wanting to finally take out a mortgage this year, and I know there are several lenders who are willing to lend up to 95% of your property value. I would have to wait at least another full year or more to save for a 10% deposit, but with only 5% required I can try buying a lot sooner.

Has anyone taken that deal with any lender? If so, what was your overall experience?

Thanks!

brit1234

There are Newbuy and Homebuy schemes which require 5% deposits. Personally I wouldnt wish them on my worst enemy. A 5% deposit will put you in negative equity in a falling market.

Better off cutting back on spending and saving a 15% deposit

Jake07

Thanks Brit. yes, I'm aware of the danger of going into negative equity, but my goal is to live in the property - possibly in time rent out a bedroom to a student (want to buy a 3 bedroom). My job (and therefore income) are rather secure, so that doesn't really scare me so much. I am looking to buy at the lower price spectrum anyway, so don't think those properties will go down in value anymore - I live in the north-west where they are already pretty cheap.

I know I could get a lower rate if I had a 10-15% deposit... but that would mean 1-2 more years of saving & I ain't getting any younger. :cool:

So the Newbuy & Homebuy schemes are the only ways to get a 95% LTV mortgage? I was under the impression certain lenders would lend that as a regular loan, apart from the government-sponsored scheme.

guesswho2000

Jake07 wrote: »

So the Newbuy & Homebuy schemes are the only ways to get a 95% LTV mortgage? I was under the impression certain lenders would lend that as a regular loan, apart from the government-sponsored scheme.

There's a few around, Nationwide offer then to those with their save-to-buy savings account and Cambridge Building Society do (although that'll be no use to you up north!), there are others too I'm sure.

dotdash79

Jake07 wrote: »

So the Newbuy & Homebuy schemes are the only ways to get a 95% LTV mortgage? I was under the impression certain lenders would lend that as a regular loan, apart from the government-sponsored scheme.

Some small local BS will go up to 95% but they normally limit the area that you can get them. Ipswich will lend that but only in Suffolk and a few other areas.

Also saving a little more means you will get a better interest rate and a bigger range of lenders.