95% Mortgage advice required

cheapaschips801

Hello all,

I'm a newbie to all this mortgage stuff, but would really appreciate some advice from the MSE community.

Im looking for some good sources of information before I go and see a mortgage advisor at the bank.

I'm probably looking to go with a 95% mortgage, I have done some initial research on google, there seem to be plenty of places that are willing to give a 95% mortgage, but what should I be looking for and what the the big no no's?

http://www.money.co.uk/mortgages/95-mortgages.htm

Any help or advice would be much appreciated

welshwizard1927

I know others will be along shortly with other pieces of information, but this is my contribution:

- lenders will be extremely fussy, because they can afford to be. Just because a lender advertises they do 95%, it doesn't mean it's guaranteed.
- unless you're going through newbuy etc, you'll struggle to find 95% on a new build property.
- if you have a default, I think you'll struggle.
- you may wish to seek advice from a mortgage broker. He or she may be able to advise on your best option based on your circumstances. This will avoid any damage to your credit rating through multiple applications.

I'm sure if you posted your circumstances - ie value of property you have in mind, amount of deposit, details of salaries and debts, people may be able to assist a bit more.

I'm currently going through an application for 95% mortgage. It's daunting but I think the possibilities are increasing compared to this time last year.

Good luck!

Yorkie1

I would suggest you don't approach your bank. They will only be able to offer you their own products, as opposed to a whole of market independent broker who can search for the most ideal product for your circumstances.

_Andy_

"see a mortgage advisor at the bank." - which isn't going to help as they will only offer their own products

marshmallowkisses

I was a bit of a worrier, my partner and I wanted a joint 95% mortgage and have various credit cards, a loan and overdrafts (which were used regularly on my account). All credit cards and loans getting paid and overdraft, although used, reducing month-month.

We applied for a mortgage through my partners bank (Clydesdale) as they were one of the few offering 95% LTV. Applied on the Friday and after all my worrying, posting on here, tearing my hair out and general stress, on Tuesday following, we found out we had been approved.

So the best piece of advice I could give you is GO and try with clydesdale, and see how you get on. Bear in mind we are first time buyers and presumably by saying you are new to this mortgage "stuff" you are too

All the best, don't google too much, as I did!!! It will all likely be fine.

kingstreet

You were very lucky your partner just happened to bank with Clydesdale...

The chances of that happening with an English, Welsh or Irish borrower are very slim.

A broker would be able to advise such borrowers on the possibilities open to them.

seikothrill

I posted this a while ago, probably 15 months plus.

If you are planning to purchase a property in England or Wales in the future (over 6 months time) then it is worth opening a bank account with Ipswich Building Society which then makes you a member of the Society.

Ipswich BS has a 95% mortgage product but it is only available to members of the Society that have had an account for over 6 months.

I only know about this because my brother did this

kingstreet

seikothrill wrote: »

I posted this a while ago, probably 15 months plus.

If you are planning to purchase a property in England or Wales in the future (over 6 months time) then it is worth opening a bank account with Ipswich Building Society which then makes you a member of the Society.

Ipswich BS has a 95% mortgage product but it is only available to members of the Society that have had an account for over 6 months.

I only know about this because my brother did this

Worth noting;-

Please note that our mortgage products are only available to direct applicants in our local postcode areas IP, NR, CO, CM, CB and PE.

http://www.ibs.co.uk/mortgages/mortgage-products/fixed-rate-mortgages

seikothrill

kingstreet wrote: »

Worth noting;-



http://www.ibs.co.uk/mortgages/mortgage-products/fixed-rate-mortgages

In view of your response I spoke to my brother as his property is not in any of those post codes as for work reasons he moved from CO post code PL

He mentioned that to qualify he had to apply via a broker whose office was registered in a local post code but Ipswich had no problem with lending in locations outside the East of England.

He did say they were not the quickest and that he had to provide a lot of information because of the 95% lending.

Mind you as I said this was over 15 months ago so things may have changed

kingstreet

AIUI Ipswich lends on properties in East Anglia introduced by East Anglia brokers. I don't honestly know if they lend outside East Anglia if you still use an East Anglian broker. I don't often get involved in such cases, so I just noted what the website said, as I thought it may have changed in the intervening period.

As always, check if considering using any lender.

dotdash79

kingstreet wrote: »

AIUI Ipswich lends on properties in East Anglia introduced by East Anglia brokers. I don't honestly know if they lend outside East Anglia if you still use an East Anglian broker. I don't often get involved in such cases, so I just noted what the website said, as I thought it may have changed in the intervening period.

As always, check if considering using any lender.

I was going to use them at the end of last year, they would lend direct to anyone in England or via a broker who was based in East Anglia. But that was for an 85% mortgage.