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MSE News: Q&A: Help to Buy 95% mortgages launch brought forward by Government

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  • I think affordability and LTV are being confused, you could quite easily have a 50% LTV and not afford it. Just because 95% mortgages are back on secondhand properties does not mean doom and gloom is ahead.

    Lenders affordability checks are far more detailed than some 5+ years ago, its the Newbuy scheme that should cause worry if anything. On the basis buying a new build property is usually over the odds on price from the start, neg equity is a given on that scheme.

    Lets see what happens when self cert raises its ugly head it the not too distant future
  • kingstreet
    kingstreet Posts: 39,269 Forumite
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    Lets see what happens when self cert raises its ugly head it the not too distant future
    Not going to happen. Same as interest-only. Considered too risky and too likely to result in a "irresponsible lender" tag from the FCA and no lender is going to risk that.

    MMR is just round the corner and criteria and underwriting is likely to get tougher, not easier.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • amnblog
    amnblog Posts: 12,732 Forumite
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    kingstreet wrote: »
    MMR is just round the corner and criteria and underwriting is likely to get tougher, not easier.

    MMR due on 26th April 2014 specifically bans mortgages without proof of income.

    'Lenders will be fully responsible for assessing whether the customer can afford the loan, and they will have to verify the customer's income'

    (before 2008 self certified mortgages were available at 95% LTV)
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • I'm looking to buy my first ever property and after resisting the temptation of brand new build I hope this will help reduce interest rates and not cause property prices to sky roclet further.
  • kingstreet
    kingstreet Posts: 39,269 Forumite
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    Reduce interest rates?

    Compared to what?
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • amnblog
    amnblog Posts: 12,732 Forumite
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    good point KS
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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