Pro's/Con's- Stay renting or apply for 95% mortgage?

Ad86

Thanks for your valid points. Definitely something to think about more before jumping into anything.

robedha1

I'm a FTB and just had my mortgage offer issued. I've been renting the same flat for almost 3 and a half years. I have no debt. I paid it off last year when I was made redundant. I've been in my current job since June 2012 and it was made a permanent position in December. The mortgage I am getting is 95% LTV with Newcastle Building Society. Despite the fact it took 6 weeks just to get referred to the underwriters I'm happy with the decision I made. The mortgage payments will be about £100 less than the rent I am currently paying which will give me the opportunity to overpay so I can get that LTV down.

Good luck whatever you decide to do.

ValHaller

Ad86 wrote: »

I have a credit card that i use each month (just to help credit score, i dont NEED it)

Pay it off in full each month too. For a mortgage, there is no evidence that keeping a balance does anything to help you - all the evidence is to the contrary.

Manual_Reversion

Why not wait until next January when the "Help to Buy" scheme that was announced in the recent Budget kicks in.

The government will underwrite 14% of the value of the property, meaning you qualify for a better LTV mortgage. So if you can find 6% in cash from your own savings, the government will underwrite the next 14%, meaning you qualify for a 80% LTV mortgage, which will get you a better mortgage rate.

You still borrow 94% from the lender though, it's not as if the gov is giving you the cash.

You can use this scheme for any property, it doesn't have to be a new build.

Ad86

The CC is always paid back in full before anything is due.

I have read up about the Help to Buy schemes, might see what more info becomes available about them....

yertiz_2

May I suggest you watch the first half of the latest Keiser Report, 30th March (Ponzi Lottery) before you make up your mind:
http://maxkeiser.com/

harpoboy

yertiz wrote: »

May I suggest you watch the first half of the latest Keiser Report, 30th March (Ponzi Lottery) before you make up your mind:
http://maxkeiser.com/

This is a former standup comedian, and a presenter on Russia Today.

The last thing we need is a mouthpiece for that bastion of democracy, lecturing the UK population.

harpoboy

Ad86 wrote: »

Hi.
Me and my OH are currently renting (£450) per month.
But we really want to buy our own place (freedom of being able to decorate, and a much more stable situation), we have had 2 landlords give us notice letters within 6month rentals at previous houses. Leaving us to move houses twice in a year. Both "short" term lets which were not made clear at the start of the tenancy.

Anyway, we have seen the few 95% LTV mortgages that are offered, but are unsure if one would put us in a financially worse situation than we currently are.

We earn around £26K basic between us, and have no credit card debts etc etc.

Should we continue renting, or have a closer look at 95% mortgages? Looking at houses around £70'000-£80'000 mark.
And we would struggle to save for a 10% mortgage, unless we put this off for X number of years and continue spending "dead" money on rent.

Thanks for any advice.

IMHO, the timing is now ideal for someone in your position to buy.

Once the governments new incentives kick in in early 2014, there will be a huge rush from FTBs to get into the market pushing prices up.

kingstreet

harpoboy wrote: »

there will be a huge rush from FTBs to get into the market pushing prices up.

IMHO it will simply result in the release of lots of pent-up supply. There are thousands who have not tried to market their property because of the state of the market in most of the country.

ValHaller

harpoboy wrote: »

This is a former standup comedian, and a presenter on Russia Today.

The last thing we need is a mouthpiece for that bastion of democracy, lecturing the UK population.

It is not as if the UK is a bastion of democracy itself.