95% Mortgages? Who does them and how can I find them?

tmwsccsh

Hi all,

Hopefully there is someone out there that can help me.

I am currently renting a property and have the opportunity to purchase it - only problem is, with the property being over £350,000 I am getting stung for 3% stamp duty - this means I only have 6% deposit (would have 9% otherwise and could probably find 1% easily but no way can I find 4%).

Can anyone advise who is currently doing 95% mortgages with sufficient LTV that I can talk to? I have been through some other sites that have lenders listed but then they seem to have clauses like existing borrowers or customers only or family support guarantees required and such like.

I just want a straightforward repayment mortgage.

Saffron Building Society are interested in talking to me, but the interest rate is 5.99% which is excessive as the monthly payments are ludicrous - I am hoping for around 4.5% or so.

Thanks in advance to all for any pointers.

Regards

Tim Watts

ACG

The reason its 5.99% is that there is no equity in the property. If you stopped paying they would actually lose money.

That being said there are some lenders with lower rates but not at 4.5%. Maybe closer to 5%, they tend to be smaller building societies. Have you had a chat with a broker who can look for whats available in your area?

originalmiscellany

Hello there - I'm not an expert, but I am thinking that you will struggle hugely... 5% deposit is tiny for a house of such value - 350k; Can you not save hard for a few months to get your savings up to a minimum of 10%? If you are considering a 350k mortgage, you must be on a decent salary, which in turn poses the qn how come you've "only" saved 17.5k?

The more you save the better your mortgage deal

tmwsccsh

ACG wrote: »

That being said there are some lenders with lower rates but not at 4.5%. Maybe closer to 5%, they tend to be smaller building societies. Have you had a chat with a broker who can look for whats available in your area?

Hi,

Yeah, I've spoke to a couple but they've not proved that fruitful, apart from the 5.99% one.

Do you know who the lenders with rates around 5% are - it still may be worth a look?

To the query of the savings, there is more, but it's the Stamp Duty that kills it - unless anyone knows how to avoid that, but I am guessing the answer there is most definitely a no!

Regards

Tim Watts

tmwsccsh

originalmiscellany wrote: »

Can you not save hard for a few months to get your savings up to a minimum of 10%? If you are considering a 350k mortgage, you must be on a decent salary, which in turn poses the qn how come you've "only" saved 17.5k?

No time - the purchase option is around August time.

See last - there is more savings, but the swine Stamp Duty takes it - if it wasn't for that there would be nearly 10%...

Regards

TMW