Try for 95% or wait one year to get a 90%?

Alphamare

Should we buy now or wait another year?

How much above the deposit do we need?

How do we find a broker?

We have an appt with Halifax next month to discuss our options.

wymondham

Difficult to predict the future but I would personally wait a year if you can. I would suspect the government schemes would have stopped and interest rates will have risen so you'll know what you need to plan for....

ethank

It depends what you want to buy.

The deals on new build right now are too good to ignore.

Wh05apk

Now or later is down to you, are you looking at this as an investment or do you need somewhere to live now?


At the moment if you are looking at 95% then there are few lenders, and in the next few weeks Abbey etc will enter the market, I predict when they do, they will be far more competitive - certainly far cheaper than Halifax, so would suggest you shop around in a few weeks or see a broker then once the dust settles.

Alphamare

We don't want a new build

It's a home for us. Unlikely to move or resell in the future.

I have no idea if prices will be rising or interest rates. How does one decide? Is the interest rate on a 90% mortgage worth waiting for.

Alphamare

I thought that the help to buy scheme (the one with the guarantee) had been scrapped anyway?

Wh05apk

I have no idea what prices are like in Herefordshire, co could not advise what will happen to prices, it is highly likely interest rates will rise over the next few years, although I do not think dramatically.






Rates at 90% are quite a bit better than at 95%, also at 90% you will be more likely to be able to remortgage to a better rate in 2 years time.


Ultimately if you need/want/can afford a property now, I think now is a good time to be buying, if it means you pay extra for 2 years because you are at 95% it is probably a small price to pay?

Alphamare

I wish there was a way to work out what the difference between doing it now and doing it in 12 months would be. If prices rise or interest rates rise it would have been better to buy now.

We are in Cornwall now. Prices are pretty high down here and didn't drop much in the recession.

How do we find a broker?

Any ideas what the added costs to buying a house are, roughly? For a 140000 propert roughly. There isn't really anything available below the stp duty threshold sadly and I don't think ftb are exempt anymore?

reallyjammyjam

I don't think you are going to get an answer to your question of better now or later because no one can predict was in going to happen.

We are in same situation and going with 95% - we know we are going to pay a higher rate but that is the price of our impatience.

You will obviously get a better rate with 10% deposit, but in my own humble opinion house prices will rise (how significantly, or when? who knows) so I guess it depends on if you can afford a rise or whether what you are looking at now is on the cusp of your budget. If it's on the cusp now and you can afford the higher rates for a couple of years I would say go for it now.

As for the broker - try to find anyone you know who has recently bought a house/remortgaged and ask them for recommendations it's the best way although to be honest there really isn't a lot out there at the moment for 95% (although as Wh05apk says there will be more lenders coming on board in the new year with the gov scheme (which is still very much going!) and will HOPEFULLY in turn make other banks rates that aren't in the scheme, more competitive)

Price - I assume you are talking about fees (surveys, solicitors, mortgage fees, moving cost etc. etc.). As an example we have budgeted for £5000 BUT I think that is me being a bit over the top - however I wouldn't look too far below that, better to expect and plan for the worst rather then get a surprise later on.

Thrugelmir

Alphamare wrote: »

I wish there was a way to work out what the difference between doing it now and doing it in 12 months would be. If prices rise or interest rates rise it would have been better to buy now.

Are you currently renting or living at home?

Alphamare

Renting

But this is our home!?