95% mortgage

wjr4

Are there many 95% mortgages that do not use the 'Help to Buy Mortgage Guarantee'? I'm a bit worried that we will not be able to find a house before the Mortgage Guarantee scheme ends on 31st December 2016.

Thank you!

Double_V

You are not alone.
We are in the same boat as you.

So would very much like to know about these 95% mortgages.
Do they still offer ?

kingstreet

There are lenders offering 95% mortgages outside HTB - MG.

ACG

In short, yes.
However, they will probably not be able to supply everyone who wants a 95% Mortgage which means they could pull them unless the big boys are happy to do 95% mortgages without HTB.

brit1234

Personally I believe 95% mortgages as reckless in a property bubble, as prices fall you could be easily put into negative equity.

Is there anyway to raise your deposit?

wjr4

We aren't too worried about negative equity as the house will be for the long-term so hopefully prices will have risen again by then. There isn't any way of raising more deposit as prices nearby are £260k+ for a two-bedroom house in a not-so-great area. The stamp duty is also a big expense (luckily not as bad as it used to be!).

brit1234

rjw4 wrote: »

We aren't too worried about negative equity as the house will be for the long-term so hopefully prices will have risen again by then. There isn't any way of raising more deposit as prices nearby are £260k+ for a two-bedroom house in a not-so-great area. The stamp duty is also a big expense (luckily not as bad as it used to be!).

I would just save a bigger deposit whilst prices fall. I don't see the point of becoming a zombie mortgage owner, being a mortgage prisoner is not a nice situation to be in.

wjr4

It's easier said than done though - I'd much rather have the security of a house rather than be renting for another few years. We plan to have children in a few years so I'd like to have a house before this. I'm also not able to live with family or friends and I do not see the point of paying someone else's mortgage via renting when it is cheaper to have my own mortgage..

ACG

brit1234 wrote: »

I would just save a bigger deposit whilst prices fall. I don't see the point of becoming a zombie mortgage owner, being a mortgage prisoner is not a nice situation to be in.

You have been going on about house prices being over valued for years. Carry on, at some point you can say how right you were but by that point people may have missed the boat again.

I had my busiest month last month and I have come back after 4 days off and filled up my diary for the next week with people calling me. The demand for houses is enormous, there are not enough of them and it is only becoming more so.

stator

Santander are not part of the HTB:MG and are one of the big players, so I pressume other mortgage lenders will follow.

However if you take out a 95% HTB mortgage now for 30 years with a 5 year fixed rate, when you come to remortgage in 5 years time your LTV will be slightly under 90% (assuming no house price changes) so you will be able to remortgage anyway (assuming no huge problems in the mortgage market).

TSB also seem to do 95% mortgages and I can't see a reference to HTB

Anzhelka

We have 95% at Leeds building society. And I agree with you, that I don't want to pay £800+ for rented house, paying off somebody's mortgage, if I can pay £600 of mine. It least nobody will tell us to move out suddenly...like we had recently. I have 2 kids and for me it's very important to have my own house, even if the prices will fall, I won't stay on the street.