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

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  • BargainMad_3
    BargainMad_3 Posts: 772 Forumite
    edited 8 October 2013 at 3:37PM
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    adamck - you sound like just the sort of person this variant of HTB is tailored for.

    But Lcyclayton9 - don't be too disheartened. Not currently meeting the criteria for this HTB variant does not mean that you are not eligible for another type of mortgage or - crucially - this HTB (Mortgage Guarantee) scheme in the future !

    There is nothing to stop you from applying for it now but don't be too dismayed if you get the knockback and forewarned is always forearmed.

    And you make a fair point about having a good payment record elsewhere. For example, someone could have paid all their utility bills on time for decades on end but it means not one jot. I have dealt with people who have perfect credit records but have got to the point of having their gas turned off because they don't pay their bills !
  • Typhoon2000
    Typhoon2000 Posts: 1,124 Forumite
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    Though there are regular 95% deals available, banks don't seem to be too keen to approve many of these mortgages. Possibly because of the increase capital they now need to to hold compare to lower LTV mortgages.

    This is where I think the new H2B will help with more 95% deals being approved.
  • Lcyclayton9
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    BargainMad wrote: »
    adamck - you sound like just the sort of person this variant of HTB is tailored for.

    But Lcyclayton9 - don't be too disheartened. Not currently meeting the criteria for this HTB variant does not mean that you are not eligible for another type of mortgage or - crucially - this HTB (Mortgage Guarantee) scheme in the future !

    There is nothing to stop you from applying for it now but don't be too dismayed if you get the knockback and forewarned is always forearmed.

    And you make a fair point about having a good payment record elsewhere. For example, someone could have paid all their utility bills on time for decades on end but it means not one jot. I have dealt with people who have perfect credit records but have got to the point of having their gas turned off because they don't pay their bills !

    Thank you for the non sarcastic response :j.

    Im finding it really hard to know what to do for the best - i have paid over £2000 worth of debts off the lift my credit file - when i could of opted for a lot lower settlement figures... I dont want to apply for mortgages as it looks bad on my credit file - but want to get things sorted - there is so much conflicting information everywhere.... dont know what to do
  • kingstreet
    kingstreet Posts: 38,831 Forumite
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    This is where I think the new H2B will help with more 95% deals being approved.
    That's exactly where the benefit of HTB - MG was supposed to be, in the increased availability.

    Anyone who has been posting on here for a while will know this is the point I've been making for months.

    It is not to reduce rates.

    It is not to offer 95% to people with poor credit records.

    It is not to offer interest-free loans.

    The reduced capital requirement is designed to encourage lenders to offer more higher value mortgages.
    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.
  • Lcyclayton9
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    kingstreet wrote: »
    It is not to offer 95% to people with poor credit records.

    Kingstreet - what do you consider 'poor credit'

    Is it the credit score ? is in the amount of credit ?
  • kingstreet
    kingstreet Posts: 38,831 Forumite
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    Anything which detracts from a good credit record.

    Late payments
    Missed payments
    Mortgage arrears
    Defaults
    Court judgments
    Arrangements to pay
    IVA
    Bankruptcy.
    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.
  • Shoppadolley
    Shoppadolley Posts: 62 Forumite
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    edited 8 October 2013 at 4:05PM
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    ...................
  • kingstreet
    kingstreet Posts: 38,831 Forumite
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    http://forums.moneysavingexpert.com/showpost.php?p=62795929&postcount=9
    It's NewBuy in disguise. The guarantee will help to create more higher loan to value lending, but I don't see lenders relaxing underwriting criteria for it. In fact, the Government may require them to tighten underwriting, in return for the capital relaxation and the indemnity fund.

    Still, I could be wrong. I'm simply pointing to NewBuy which is HTB-MG in its present form and suggesting you would not get such a mortgage today with visible adverse.
    From a thread on 10/8/13.
    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.
  • Lcyclayton9
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    kingstreet wrote: »
    Anything which detracts from a good credit record.

    Late payments
    Missed payments
    Mortgage arrears
    Defaults
    Court judgments
    Arrangements to pay
    IVA
    Bankruptcy.

    Thank you Kingstreet again.

    I have a default on my credit file, but all accounts settled, £0 credit outstanding, no ccj's, no aarangements to pay, no IVA, No bankruptcy ... would you consider this as bad credit ?
  • kingstreet
    kingstreet Posts: 38,831 Forumite
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    In my opinion, you will not get a 95% mortgage with a visible default on your credit file.

    You would not have got a 95% mortgage before and you will not get one now, again only my opinion.

    I suspect you will be successful with an application to certain lenders at 85%, but I know nothing about you, so that's possibly total speculation on my part.
    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.
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