95% mortgages

katylovesart

I am a first time buyer looking for the best 95% mortgage I can find. Currently this appears to be 5.49% fixed rate for 5 years (with hanley building society)
Speaking with nationwide on saturday to see what they can do (I think I need to hold a savers account with them for 6 months) but I dont mind if in the long run we can get a lower rate.
Leeds building society do them but 5.99% rate
I bank with natwest and my boyfriend with barclays - my parents have already extreemly kindly donated the 5% (£15,000) deposit so do not want to ask to help anymore (e.g the barclays family springboard)
- any other ideas?!! Thanks SO much!

DannyboyMidlands

Erm save some money of your own?

Dave_Ham

Typically at 95% loan to value and specifically with the 5% gifted, I would be checking out who is likely to accept you rather than worrying about rates at this stage.

They are incredibly selective to who they will lend to, why or why not they will lend.

Good luck

Bon33

I have just opened up a save to but account with Nationwide so that I can apply for their 95% mortgage.

jamesml

As said, you might have trouble with the gifted deposit. Some lenders don't like it at all. I've heard of lenders ask for savings accounts statements dating back x months to prove the money is yours. Having said that, I've also heard of a parent writing to the bank to confirm the money is a gift and not a loan, and that was fine.

jamesml

Have you considered looking at going for a cheaper property to get a better rate? £300k is a lot for a FTB - if you can afford the mortgage, how come you haven't been able to save? Expensive rent?

Why not try and save another £5k and go for a £200k property, if the rate is that important to you.


Also, what are you planning to do about solicitors fees, valuation fees, and most importantly, stamp duty? Have you got savings to cover this already?

superspudking

Save a little extra and aim for a 90% mortgage as you will have more lenders to choose from and will get a more affordable rate on a lower loan.

Work out what your mortgage repayments would be e.g £1000 add 25% (bills) = £1250. If you can't manage to save that amount monthly for say 9 months then you can't afford to pay a mortgage. Obviously minus any rent you currently pay