95% Mortgages - help!!??

Jackbauer

My family and I have finally saved enough to put up a 5% deposit to buy a home. I watched with hope and anticipation as the government announced the details of the Help To Buy scheme earlier this year.

Alas, it seems our dreams are for now shattered because although it claims to be open to 2nd time buyers, in reality you have to have sold your first home before you can benefit from it. The issue we have is that I bought a flat when I was a lot younger before the crash which I still own. I can't sell it as it's in negative equity but it is in no way making me loads of money so this rule seems massively unfair.

I've got a few brokers on the case but now it seems as though our only hope is to keep saving until we can put up 10%. The interest rates on 95% deals also look pretty bad.

Would it be possible to sign my flat over to another family member?? Does a anyone on here have any constructive input?? Your thoughts would be appreciated!! We feel really stuck at the moment.

Cheers
J

kingstreet

You will not (IMHO) get a 95% mortgage with an existing property in negative equity in the background. HTB - Mortgage Guarantee was not designed to achieve that.

Jackbauer

What was it designed to achieve? I'm in the same boat as many others.

kingstreet

It was designed to increase the availability of 95% mortgages for those looking to purchase a property. The Government provides easing of the capital requirements and a guarantee from 80% upto 95% and the mortgage rate is higher to pay for the guarantee.

It was not designed to get people bigger mortgages than they can afford, nor to provide funds for those with recent credit problems.

TBH if you can get a 95% mortgage on HTB now, you probably could have got a 95% mortgage from one of the thirteen lenders offering them three weeks ago...

Jackbauer

Do you think we have any options right now or will we need to keep saving in your professional opinion?

Cheers

kingstreet

I don't know.

We had another thread on here a couple of weeks ago from someone looking for 95% with a property in the background.

I don't think we ever found out if he was successful. I'd speak to a whole market broker who will give you the best idea, once your full circumstances are visible.