First time buyer

Years_of_debt

Hello this advice is for my friend. I’m not in a position to buy a house anytime soon!

Just some general advice they are looking for:

Current salary £34,500
No debts, no cars on finance.
is looking to buy first house for £180,000 with a 5% deposit at £9,000. With the help to buy scheme from the government at 20% so £36,000. Total deposit is £45,000. Mortgage is £135,000.
The affordability is no problem but lenders are only willing to give a 65% mortgage. So that means they would need a 15% deposit?

Does anyone know how it works and only being able to get 65%? Would that be down to credit rating?
Would some lenders be able to give the full 75% needed but would it be a higher rate?

Thanks in advance

Smodlet

Sounds as if your friend needs either a higher deposit, lower expectations or possibly a mortgage broker. Have they tried one? HTH.

Katapolt

i second a broker. As first time buyers we were able to get a mortgage on a 95% LTV and have zero regrets.

kingstreet

Sounds like a low-scoring Halifax case. That's a Halifax internal score, not a Experian "999" or whatever.

65% is a step up from being declined.

They need an experienced newbuild broker if they are trying to do this direct. Get all three versions of statutory credit file before choosing a broker.