MSE News: Help to Buy 95% mortgages launch today: What are the deals like?

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"NatWest and RBS are among the providers which will offer 95% mortgage deals under the Government's Help to Buy scheme..."
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Help to Buy 95% mortgages launch today: What are the deals like?

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  • JesseJames_2
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    Thanks Mr Cameron!!
    If people can't afford mortgages today, even the ones with "a good income" then let the market decide.
    Do not try to prop up the house prices for your banker friends.
  • VT82
    VT82 Posts: 1,079 Forumite
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    No mention at all in the article of what rates these mortgages revert to after the fix finishes.

    Surely this will be hugely important for people who are likely to become 'mortgage prisoners' due to their LTV once their fix is up?
  • brit1234
    brit1234 Posts: 5,385 Forumite
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    The main hindrance to first time buyers getting on the market is house prices are too high. It is not access to more irresponsible lending.

    Help to Buy part 2 will just increase prices further freezing future generations out of home ownership. Those who participate face the serious risk of negative equity when the bubble bursts or crippling interest rates when the base rate rises.

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    :exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.

    Save our Savers
  • Gordon_Hose
    Gordon_Hose Posts: 6,259 Forumite
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    VT82 wrote: »
    No mention at all in the article of what rates these mortgages revert to after the fix finishes.

    Surely this will be hugely important for people who are likely to become 'mortgage prisoners' due to their LTV once their fix is up?

    Only one I could find was Natwest...

    4.99% for 2 years which reverts to 4% variable thereafter.

    Or, 5 years fixed at 5.49% and 4% variable thereafter.
  • Lcyclayton9
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    I have been waiting for this 5% to come out for ages so im glad if no one else is that its been bought forward. I have found a house and have an appointment with natwest on Friday...
    Im so scared because this means everything to me - i work full time with a good salary and all i want is some security for me and my daughter as privately renting just means that they can decide to sell at any point!
    I have worked hard in the last year to get my credit rating up - its on excellent with experian and good with exquifax.
    Im so scared as this means the world to me and houses rarely come up near my daughters school and really dont want to lose it.
    I have defaults on my file - but these accounts are all settled now - but will i have problems as iv defaulted ???
  • Gordon_Hose
    Gordon_Hose Posts: 6,259 Forumite
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    If you have defaults you're unlikely to get a 95% LTV mortgage.
  • BargainMad_3
    BargainMad_3 Posts: 772 Forumite
    edited 8 October 2013 at 2:37PM
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    To counter any allegation that there will be irresponsible lending, the banks are only going to be offering these mortgages to a certain type of customer. Those who are "Rock Solid".


    I agree with the above poster. I am afraid anybody with settled defaults isn't going to be one of them.

    Besides this people will also have to prove their income both in the past and going forward. Somebody may have a good salary now but they are going to be looking at whether this is going to be maintained throughout the mortgage. In the past there was too much of an emphasis on overtime and benefits being acceptable forms of income. But for these mortgages they are going to be looking at how sustainable the basic salary is rather than trying to big up your income on every other front.

    Additionally all other credit obligations with all other providers will be factored in as well as all other outgoings.

    In essence - really tight criteria and no "softening" or nods and winks like in the pre-2007 days.

    Anyone who doesn't fit these criteria is not going to get one of these mortgages.

    In reality it is a return to the sensible and sustainable lending which existed before the rush to lend to anyone with a pulse. Lending which ultimately led to the collapse of the RBS, Natwest, Halifax and all the rest.

    There is too much in the media about these new 5% mortgages being reckless but in reality they will only be granted to those with perfect profiles.
  • kingstreet
    kingstreet Posts: 38,788 Forumite
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    As I've been saying for days, there are 17 lenders offering 95% mortgages or variations thereon, 13 of them on second-hand property with no parental security required.

    The going rate is 5% to 5.5% and this will be no different.

    If you can get a 95% mortgage now, IMHO you could have got one before.

    If you have had credit problems, this is not going to get you accepted as the criteria will be as strict as it usually is for such high LTV lending.
    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.
  • kingstreet
    kingstreet Posts: 38,788 Forumite
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    but will i have problems as iv defaulted ???
    Yes. If the defaults are still visible on your credit file.
    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.
  • adamck
    adamck Posts: 87 Forumite
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    I have been waiting for this scheme too.
    I believe that anyone who looks into it deep enough will see its pretty good for all.
    The rates are just under 5% which seems fair, the 5% deposit allows me to get onto the ladder having been able to save up £11,000 for deposit, fees etc...
    Me and my partner both have good jobs (Solicitors and NHS) and we are very careful with our money!
    We have zero commitments/loans/credit cards etc...
    I am booked in with RBS for a chat and hopefully i can
    get started.
    My credit history is clean, i have good credit, ive never been in debt, or missed any bills, payments or anything.
    I have been renting for over 5 years now and its just dead money, and trying to pay £650 in rent, plus bills and save up £11k was extremely hard to do and although people keep pointing out 'there are 17 x 95% mortgages before the scheme went live' it not been possible for me to apply for any of them so far...

    Of the 17 available 95% mortgages... most of them required either:
    A) A guarantor
    B) An existing current account
    C) Living local to the broker
    D) Buying a new build house

    I still havent found anyone (outside of the scheme) that will match what the government are doing with this scheme.

    I'm made up, just need to get it all confirmed now :)
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