IFA advice for FTB

Mrs.Downie

Hello,

I'm posting on behalf of my brother and his girlfriend. They've just viewed their first home after speaking to a mortgage adviser at an Estate Agent who told them they could get a 95% mortgage with either Halifax or Nationwide but to go direct?!

They viewed the house yesterday and did like it, it's a fixer but ideal for what they want. It's on the market for £87950.

We popped off to Halifax after seeing the house to talk about the mortgage only to be told that the 95% deal is for new builds only. Now super confused.

The vendor is a family friend and has offered to front a 5% gifted deposit which is what I did to buy my home a few years ago but I'm not sure you can still do that.

Can anyone offer advice?

Thanks in advance

GMS

Vendor gifted deposits are not allowed any more.

Mrs.Downie

Thanks. Any idea what the lady at the Estate Agent was in about in respect of the 95% deals? She was fully aware it wasn't a new build she had the particulars with her.

ACG

95% mortgages are available for non new builds.
Estate agent brokers are generally pants - they have palmed you off, why would they tell you to go elsewhere if they could earn some money out of it?

I would speak to another broker one who isnt tied to an estate agents and see what they say.

Mrs.Downie

Thanks ill make some calls tomorrow for them

GMS

The gifted deposit from the vendor will make this a non starter. Unless there is an alternative deposit available then it will be a waste of time applying.

Mrs.Downie

They have their own 5% the vendor gift was to take it to 10% when Halifax said new builds only.

kingstreet

Halifax stopped doing vendor gifted July 2011 and it was the last lender in the market.

95% there are one or two options, Nationwide but only via Save To Buy, which obviously they have missed, Newcastle Building Society, Clydesdale Bank and the odd other.

The only 95% products on newbuild are NewBuy products available on particular properties. If they cannot get 95% now, their best bet is to wait until HTB -MG launches in January 2014 which will increase the supply of 95% mortgages on second hand homes.

witchy1066

some local small BS are offering 95% on certain post code areas,
but I think it depends on were you live
in certain parts of the country the market hasn't picked up as they would have liked so they are trying to move the housing market along

I only know this because it was mentioned by our MB on our first meeting but I do believe they are very picky and the house has to be in near perfect condition

Mrs.Downie

kingstreet wrote: »

Halifax stopped doing vendor gifted July 2011 and it was the last lender in the market.

95% there are one or two options, Nationwide but only via Save To Buy, which obviously they have missed, Newcastle Building Society, Clydesdale Bank and the odd other.

The only 95% products on newbuild are NewBuy products available on particular properties. If they cannot get 95% now, their best bet is to wait until HTB -MG launches in January 2014 which will increase the supply of 95% mortgages on second hand homes.

Ha July 2011 is right when I got my mortgage, I must have been in the last batches.

I've pointed them in the direction of Newcastle BS and Clydesdale