First Time Buyer - Mortgage Advise - 90/95% LTV

il638

Hi All,


Looking for some advise, I am looking to buy my first home after getting finances into shape.


basically this is where I am at:


in a relationship with one child
my mrs isn't working as little one is young.
so I am sole earner.


on 39k a year


all debts clear apart from one loan with my bank, which has 6 payments of £300 left on it.

we currently have £8000 saved for a deposit in our lifetime isas (4 each), looking for houses max price of 125k


are they any good 95% mortgage deals/companies atm you could recommend we try with to purchase now? or should we wait till towards back end of year clear the loan and get a deposit of 12500 aside?


that was the original plan however somebody just mentioned that theres actually some good deals about with 95% mortgages that I could take advantage of.


any help/advise would be appreciated.


Cheers

dimbo61

Well £39K a year is a good income if you can afford to buy a House in the area you live for £125K.
But you have 2 dependants
You also have £1800 of debt and only £8,000 saved in a LISA ( plus 25% governemnt bonus )

I have used GOOGLE and it has come up with the following 95% mortgage deals from https://www.money.co.uk

https://www.money.co.uk/mortgages/95-mortgages.htm?track=269578&creative=235144665053&network=s&placement=&adpos=1t1&gclid=EAIaIQobChMIzt--tt2d2QIVyrftCh2m3AZ5EAAYASAAEgJbFfD_BwE


However buying a property is expensive with lots of hidden costs.
Survey, solicitor, searches etc so save every penney you can for the time being while you search for a property.
The very good deals from Barclays are family springboard mortgages !!!
So has mum/dad or your partners mum/dad got 10% of the purchase price in the bank ???

dimbo61

There will be more deals if you can save a 10% deposit and also save money for fees

il638

that money site is a brilliant indicator, thanks for that, and yes fortunately in my area the houses are between 100 and 125k in the area I am after so that's perfect but your right even using that money site above, 10% gives you better rates and deals. and im looking at 125k for the better equipped houses.

il638

also don't want to mix family and money, our parents although have money have caused us no end of headache in not being happy for us being together in first place.

ACG

The debt will get ignored with some lenders because it has less than 6 months to run. By the time you complete it might end up only being 2-3 payments.

There is quite a big drop in rates between 90% and 95% so unless you have found somewhere it might be worth holding fire? Also some lenders do not ask for proof of deposit so if you think you can get to 10% by the time you complete, it might be worth looking at that option?

I can not name lenders on here as we have no information to go on to say whether or not they will accept you. There is more than rates/fees, it also checking affordability (which seems fine), criteria and also likeliness of being accepted.

il638

cheers guys, ive been playing about with the site above, it makes much more sense now, its all I needed, I can defo see more options with 10% mortgage and its good to know that the loan will be ignored as nearing its end i think we'll stick out till September when i reckon i will have the money. and maybe start application beginning of july time.

https://www.moneysavingexpert.com/mortgages/best-buys/?page=results&pageNumber=1&mortgagetype=FIRST_TIME_BUYER&amountborrow=112%2C500&propertyworth=125%2C000&repayyears=30&producttype%5B%5D=FIXED&producttype%5B%5D=TRACKER_BBR&producttype%5B%5D=DISCOUNT_VARIABLE&producttype%5B%5D=STANDARD_VARIABLE&banks_filter=&providerFilter%5Bbank%5D%5B%5D=154&building_societies_filter=&productlength%5B%5D=2&productlength%5B%5D=3&productlength%5B%5D=4&productlength%5B%5D=5&productlength%5B%5D=10&productlength%5B%5D=-1&earlyrepayments=1&resultsOrder=MSETrueCost

robgoode

We are currently going through our first purchase with a 10% deposit. 2 lenders that we were pointed to and had good deals were Principality Building Society and Hinckley and Rugby. We went with H&R due to zero fees involved in the application or when we remortgage in 2 years time.

il638

one thing I cant see from that calculator is it has early repayment charge and most say 0 but some also have exit fees. what are these? is this for when you want to remortgage at the end of your deal? you pay that charge? even though you have no other early repayment charges? also does everyone allow you to change provider/go onto another deal at the end of your 2yr rate? is their any that still tie you in after that period? just so I am not caught out, as some do every good rates but then after the 2 yrs go to a ridiculous amount.