95% mortgage

wjr4

I agree, it worries me that I could be thrown out of a rented place whenever, I want the security of my own home - especially when you have children! Was the interest rate high for 95%, if you don't mind me asking?

stator

95% is currently 3.8% - 4% on a 2 year fixed. 4.5%+ for 5 year

marsman802

I'm completing on house purchase next week for close to £800k. A house nearby just had an offer accepted at £850k and it is virtually identical - there may be a bubble but until it bursts things will only get more expensive.

kingstreet

ACG wrote: »

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.

FWIW our house in ST18 is not worth much more than what we paid for it in July 2004, over ten years ago so what's happening in some areas is not the same everywhere...

nakiwala123

We have a 5% mortgage product from Nationwide(save to buy mortgage from 2013) but like you, the security of a roof over our heads and that we could only move when we wanted and not at the landlord's whim was a bigger plus for us.

Luckily, we are 6 months away from re-mortgaging and prices have shot up by 30% in our area since we bought the house hence increasing our equity by default.

I would,however, heed the advise to be careful and fully understand where you might end up. We were aware that bse of the very little equity we had, we had a much smaller cushion hence negative equity would be possible if prices fell. We bought a house that was within an area of good transport links, OH could get to London easily(most employers for his profession are based there) and that if things didnt workout, we were happy to be stuck here.

Good luck with your search.

HappyMJ

Anzhelka wrote: »

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.

£600 is not going to pay off 95% of a £260,000 property. That amount of money won't even cover the interest.

A £247,000 mortgage at 4% will cost £1,094 per month over 35 years. That's much more expensive than renting it, saving some more money and getting a 80% mortgage at a fixed rate of 2% interest which would be £689 per month over 35 years.

wjr4

It would be very slightly more expensive for us to buy a house and have a mortgage than rent a flat. The flats where I live are approx. £850+ pm for a half-decent flat. The mortgage that we want for a house is approx. £1,100 pm - an extra £125 pm each - which we can easily afford.

ACG

kingstreet wrote: »

FWIW our house in ST18 is not worth much more than what we paid for it in July 2004, over ten years ago so what's happening in some areas is not the same everywhere...

Fair point, but there is more than just the house prices. My mortgage is £200 a month less than it would cost me to rent and also the balance is reducing. In the long run, its probably going to be cheaper to buy than it is to rent, unless the market does drop and you are in a position to take advantage.

Anzhelka

rjw4 wrote: »

I agree, it worries me that I could be thrown out of a rented place whenever, I want the security of my own home - especially when you have children! Was the interest rate high for 95%, if you don't mind me asking?

3.99% for 95% mortgage

Anzhelka

HappyMJ wrote: »

£600 is not going to pay off 95% of a £260,000 property. That amount of money won't even cover the interest.

A £247,000 mortgage at 4% will cost £1,094 per month over 35 years. That's much more expensive than renting it, saving some more money and getting a 80% mortgage at a fixed rate of 2% interest which would be £689 per month over 35 years.

sorry I was just giving example of the property we have