high ltv mortgage. Possible?

sallyneedshelp

Long time reader but first time poster. So hello!

Through circumstance I need to move home its come out the blue hence needing high LTV

Looking into a possible 95% mortgage.

I earn 43k . Split between a 28 basic plus 15 commission and bonuses. Proven track record as I have been with same company 5 years and always earned this level.

No missed payments at all on credit file.

I do owe 9k on 0% cards but this is being cleared at 500pcm so will be clear before the zero % rate ends. The debts arisen from helping ex out when i left, not through general over spending.

Also have a home I rent out with ex gf on a consent to let. After mortgage has been paid and tax implications we clear £250 pcm between us. Reason it is being let is the redemption fee is quite high and ex wants to buy me out but cant until she gets her promotion which has ben promised. This will not be until December this year.

I realise the answer is to save a larger sum towards a deposit but as i have stated the move has come out the blue. I moved back in with parents when split from ex. They've announced they are selling up and emigrating to Spain.

Looking to borrow enough for a small flat circa £90-120k

Is a 95% ltv rate a possibility? If so which lenders? Going to see a broker thats been recommended but I'm not back in my home town for another 10 days so tentatively looking for opinions.

sallyneedshelp

Just to add, I have read up on the schemes where parents place a certain amount into savings. This probably isn't a possibility as they will need every penny for their planned new retirement in Spain. Plus, at 27 i would rather stand on my own feet than ask for financial assistance.

ACG

Hows your credit history?

Ive never had to do a 95% mortgage with so much "debt" in the background (eg other mortgage and CC). I would say your income would support it with most lenders but they tend to tighten up at the higher loan to values.

How is your credit file? Anything at 95% and your going to really struggle so mix that with the above and there is no chance.

I think this could be possible with a bit of research.

Its probably worth a chat with a Mortgage Advisor and get them doing some leg work for you... unless your happy enough to search for lenders and call them yourself.

sallyneedshelp

ACG wrote: »

Hows your credit history?

.

Ive just got a free 30 day trial from one of the credit agencies. No missed payments, no late payments, no over limit markers etc and 1 search in the past 12 months. I would imagine that was ok? . I know of nothing (apart from the debt) that could be classed as an adverse impact on my credit file as everything is DD due to me possibly being away with work for weeks at a time.

I know the debt is high but as i say, it is being paid off circa £500 PCM and will be paid off prior to the interest free period ending. It seemed foolish to use my savings to pay the debt off when its at zero % when it could be sat in the bank earning interest and is available for a back up fund should i need it.

I am just looking for a broker online now, I have been advised of one by a former co-worker but hes based in my home town and i am working in another part of the country for the next 10-12 days.I have spoken with him via telephone but he would 'rather speak face to face'.

Im open to approaching other brokers and I am generally looking to get a feel for if its possible and lenders who would offer such LTVs in my given situation. Also i would be interested to know what the product fees would be as looking around theres vary from free to £1.000s. i would be asking a broker to do all the necessary research/applications as finance is not my area of expertise.

I do have around 8k in savings, so based on 100k I would * I think * have 5% plus fees and moving costs already.

ACG

Having it on 0% is great... unless you need a mortgage.

Whilst you will have it paid off prior to the 0% finishing, thats not what lenders are looking for, it has to fit their affordability model.

Your broker will speak to the lenders and do the calculations. The fact you have a few extra thousand there will enable you to pay it down a little at least if the lender requests it.

They do vary from free to thousands - but if the fee is free then you can guarantee the interest rate will be higher. Based on the size of your mortgage then it may be better to pay the fee and a lower rate... but again, your broker will do the sums and come back to you with whats best.