best 95% mortgages

Vikaroo

Hi all
Just wondering what are the best 95% mortgages for first time buyers at the moment?

Thanks

Vikki

ACG

Best rates/best fees/best combination?
Best on the market or best for you?

Peoples interpretation of best will vary (usually in line with the lowest rate) but it rarely takes into account the overall picture of a deal.

You also need to ensure you fit the lenders criteria as that also varies from lender to lender - although at 95% its going to be clean as a whistle across the board.

Vikaroo

well we've just been quoted 729pm by our broker for his best deal and that was based on 34 years with an inital rate of 5.59% with Halifax. We were hoping for no more than around £660pm really on a mortgage of 133,000 on a 140,000 house. Am I being unrealistic?

Vikaroo

Oh and we both have very clean credit ratings

Utseya123

I agree with ACG. The sub-prime crisis of the US should serve as an eye-opener to all. Unfortunately, it hasn't. People still have short term vision and check out lenders only on the basis of lowest interest rates in the present, irrespective of whether they are fixed or floating or whether they are to escalate in the future. When you are going to contract a debt, you need to view the deal in its entirety- what are the costs which can be added to costs( if you are going in for a home mortgage or any asset loan), the rate of interest, the pre-payment policy, the tax angle, events which would be termed as default, what happens in case of death or permanent in capacitance of the borrower and the like.

ACG

It might be worth holding off until Jan. Some new lenders come to the market then, unless your in a rush.

However im pretty sure there are lower rates out there.

Vikaroo

I'm just after an overall good deal we want to fix at the moment but I'm not convinced that is the best out there. I'm finding it hard to navigate it all myself.

ACG

£660 a month is probably pushing it a bit too much.

ispookie666

All i can say, I had applied to Halifax for 95% mortgage and have it approved. We have fixed it for two years, and hopefully the rates will not go beyond the 5.19% that has been quoted for us when we fall back to SVR.

The only reason for 5% deposit was - we had used up a lot of our savings to change 2 cars and had to spend lots of money for family related stuff.

We used the HTB - reason being we could get a bigger house with the deposit compared to using the same deposit as 10% and it was way below our affordability limit.

We both have excellent credit ratings and are top rate tax payers. Also people's circumstances are different.

Vikaroo

We have found Natwest rates to better suit us. So think I'm going to call them in the morning.

Thrugelmir

Ending the mortgage term does you no favours.