95% LTV mortgages for first time buyers

rebeccasykes1989

Do they exist? If so who with?

Thanks

Random_Bloke

The Yorkshire bank offer one.

kidmugsy

If the Bank of Mum & Dad can help look too at Barclays and LTSB.

guesswho2000

Nationwide offer them to those who have had a Save-to-buy savings account funded with at least £50 for at least six months.

rebeccasykes1989

Thanks everyone, I will look into them all. The Nationwide scheme sounds good!

droiderm

There are also some NewBuy lenders who do 95% on New builds.
Nationwide, Halifax, Barclays , Aldermore, Natwest IIRC and maybe one or two more.
Leeds BS and Newcastle BS do a 95% too IIRC. I am sure there are more.

The general line on 95% mortgages are they are very strict underwriting.

rebeccasykes1989

I was told by a mortgage advisor to steer clear of New Builds if possible, and that a lot of lenders are funny about lending for new builds, is this true?

droiderm

In my non expert experience, the only "funnyness" from lenders is normally the LTV they will allow for a new build. For example some lenders may only do 85% on a new house, or 80% on a new build flat.

However, NewBuy is specifically for new builds. So they won't be "funny" about it under that scheme. Provided your accepted of course.

ACG

there are a few building societies that offer them in specific areas.
If you have a local building society, they may be able to help.

brit1234

rebeccasykes1989 wrote: »

I was told by a mortgage advisor to steer clear of New Builds if possible, and that a lot of lenders are funny about lending for new builds, is this true?

Yes. New builds are normally very overvalued, you pay a premium for the newness. So when you come to sell it is not new and there is a big drop in value. Hence with a 5% deposit you would be put into instant negative equity.

marathonic

In Northern Ireland, Danske Bank offer 95%... I know someone who got one recently - at a 5.99% 2-year fix.

Better to save the extra 5% deposit and get an interest rate of about 2% less per year.