best 95% mortgages

ACG

Natwest are underwriting the HTB mortgages at 7% interest.
If you have to have a 35 year term to afford it, then you may struggle to get it through with them - but im sure they will let you know befre hand.

Keekles

ACG wrote: »

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

^ This.

The more lenders there are, the more competitive rates will be. In answer to your question however, I think you might be pushing it with £660.

jamesd

Vikaroo wrote: »

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?

What's your affordability situation? It only takes £7,000 to get down to 90% LTV and that sort of level of unsecured borrowing is very likely to be possible. Are you sure you couldn't get there, perhaps by using credit cards on 0% deals for a while? That'll hurt affordability by the card repayment but the lower LTV will probably help.

It's not really possible to do much assessing of your options because your incomes aren't known even roughly.

I'm not sure that a house as a FTB is a great idea. More traditionally it would be a flat, which would be far easier to afford and allow you to save money to make it easier and cheaper to buy a house as a second step in a few years.

Vikaroo

We earn around 2400 jointly after tax and we have commitments of 600pm . Thats about it then apart from everyones usual gas electric food etc

We were looking at 34 years only because we are 23 and 27 so thats well before retirement. We hope to bring this down by over paying anyway as time goes on

jamesd

Lets pretend for the moment that instead of a house you went for a flat. Have a look at the mortgage cost, council tax and lower bills as well as lower mortgage interest cost for a flat at lower LTV. You'll probably find that your outgoings end up at least £300 a month lower than if you push it to a house now. What can you do with £3,600 a year not spent? A nice bit of deposit building to make it possible to get a house at a lower LTV in a few years, and that lower LTV will again save you money compared to doing it now.

It's not what you want now but have a look at the numbers for your area and see what the difference is, then you can decide whether that extra amount of money saved each year is worth the short term compromise or not.

Vikaroo

I'm pushing 30 and want a family soon. I also don't want the hassle of having to go through the buying a house process again either as I don't deal well with stress. Finally, the house ticks all the boxes (villiage location, 5 mins from my non driving boyfriends work place, views over a farmland, perfectly between my parents and his and its 3 bedrooms.) It's too good to not take it up and those kind of properties are hard to come by in my area. So not only does it tick the boxes, I wouldn't have to move again. So unfortunately, a flat is completely out of the question for us and they cost as much as a house here to be fair.

ACG

Thats put him in his place :-P
(Only joking).

jamesd

Those seem like pretty good reasons to go for it now if it's affordable. Good luck with the mortgage!

Wh05apk

Accord, are probably amongst the best at the moment for overall deal, however:
- they can be a pain to deal with
-their credit scoring/approval process is nigh on impossible to get through
-their svr is horrendous!


But apart from that.................

Vikaroo

Yes I was advised by the mortgage broker not to go for accord for that reason. Although our credit file is great Im not a big risk taker! We are probably going to use natwest! We have 14k saved altogether so we do have the deposit for 10% we just dont have the additional cash for the solicitors etc so hence the 5%. So 7k deposit + 2300 for solicitors fees and stamp duty + 500 for survey. We then hope to have some money left over to put in savings in case anything goes wrong and for any furniture we might need. The seller has actually offered all the white goods his bed and the sofas and a dining table for 700 all are fairly new to. So cant complain!

The rate we have seen from natwest is 4.99% fixed for 2 years and then reverts to their variable rate at 4% following that.