First time buyer,10% deposit, which bank? URGENT!

Parisien

My sons looking to buy his first home, his bank said he needs a 20%, which banks are best to approach to obtain a loan, without having to trawl every single lender!

saverbuyer

I've been told Halifax is the most lax mortgage lender.

Parisien

Ok, what are they like with a less than perfect credit score? ie he was late with a few DDs/payments for his internet provider a few years ago when a student, or how much weight would this carry?

wifeforlife

The whole process is quite indepth now, our application was 2 hours last year.

Ulster Bank take 10% deposit on mortgages

Parisien

Thanks, we'll chase up these avenues!


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GBNI

I'm with Danske, they only required a 5% deposit and we got £500 cashback.

oldhand

First to admit im no expert but if he has to borrow to provide the deposit how does he expect to pay a mortage for next 25 years???

In_For_A_Penny_2

Not sure such a decision should ever be "urgent". Better to take his time and work out what is affordable.

Has he considered a mortgage advisor if he doesn't the time or inclination to look at the various products available?

Parisien

Hes made an offer which has been accepted on a house, in a prelim mortgage interview they said no problem with the amount he wants to borrow, he has a 10% saved.

It appears its mostly down to having a short track record of employment in his new job, plus its a family business, so given the modern application process which in inquisitorial in design and put together in such a way as to deny giving younger people a mortgage compared to 2008/in my day!

So more hoops to jump through, more evidence to supply and use a less scrooge like lender!


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saverbuyer

Don't normally say this but it could be one for a broker. Short employment history, working for family and missed payments in the background make it a difficult one. Going around applying to lenders blindly could be wrecking what little chance he has of getting a mortgage. I'd pause for a bit and talk to a good mortgage broker. By good i mean whole of the market, potentially paid for broker. Not one who'll simply pick Ardmore or Halifax.

P.s don't try and borrow a deposit. Lenders don't like it.

I also think the new MMR procedures are a good thing in general. We really don't want to go back to 2008 style lending ever again.

Parisien

Yup, the banks and developers wrecked it for everyone, greed, panic and a lack of perspective are poor bed fellows in the property market.

Its his own 10% deposit. He was in his previous job 3 yrs, plus has a track record of renting for 5 yrs etc. The missed payments were only in effect delayed payments, no letters making demands etc.


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