Mortgage 5% LTV

krusty83uk

Me and my partner got an agreement in principle for amortgage from the Newcastle building society 2 months ago it was for a 5% depositmortgage.

With us staying in Scotland this was the only 95% LTV mortgagewe could get. We found out todayNewcastle building society isn’t taking any new applications for this scheme.

They have run out of money for the product has anyone anyidea will this be replaced? Or any otherlenders looking like they will step into the 5% deposit market?

Johnny_Locus

Hi there,

There are two other lenders I know of offering 95% LTV mortgages, Nationwide and Leeds Building Society (potentially Halifax as well, but I'm not certain on that one).

My partner and I are just starting the application process with Nationwide (you have to have a Save To Buy savings account with them for 6 months prior to applying).

I'm not sure whether these lenders cater to Scotland but it's worth looking into.

Your other option is to save a larger deposit and try for a 90% or 85% LTV. They're much more attainable.

krusty83uk

Thanks a lot.

The problem is this would require more saving waiting. I have been reading about the nationwide ISA I may open one over the next few days.

I have had a look at Leeds building society I may give them a call tomorrow. Checked the Halifax they don't do 95%. I am going via a broker maybe Leeds don't deal with brokers?

Many thanks

Russell

dktreesea

Are you buying a new build? In Scotland there is the MI New Home Scheme, which is a Scottish Government mortgage guarantee scheme for buyers of new builds with only a 5% deposit.

Both RBS and Nationwide are participants in this scheme. HBOS is meant to be getting involved soon.

http://www.gspc.co.uk/new-homes/mi-new-home-scheme/

dktreesea

For existing homes, rather than new builds, I also saw this article a few weeks back:

http://www.scotsman.com/edinburgh-evening-news/latest-news/budget-2013-help-for-edinburgh-housing-market-1-2850172