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95% LTV mortgages

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!

Comments

  • brit1234
    brit1234 Posts: 5,385 Forumite
    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
    :exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.

    Save our Savers
  • Jake07
    Jake07 Posts: 12 Forumite
    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
    guesswho2000 Posts: 1,703 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Uniform Washer
    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
    dotdash79 Posts: 1,069 Forumite
    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.
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