95% Vs 90% first time buyers

Chernobgg

My partner and I live and work in the Southeast. We are saving for a deposit. We are reaching the point where we could get a 95% LTV. 

We recently visited friends who live in a more affordable city and we were impressed by what they could afford.

I see three options:
1) 95% LTV in the southeast
2) save longer for a 90%
3) move to a more affordable city which would include a career change for one of us

Any one had a similar situation? What are people's experiences of 95% LTV? Any advice would be greatly appreciated.

[Deleted User]

How long would it take to save the extra 5% deposit? 
In that time if you took a 95% mortgage, how much capital will you repay and how quickly will house prices go up? (who knows, its just a guess)

If you wait until you save the extra 5% then chances are the properties you are looking at just now will be priced higher than they are.   If you bought just now you can enjoy house price growth that you wont do by renting.  

As an example,  when i bought my first house, my mortgage payments were about £150 higher due to small deposit. However, after 3 years I sold that place for £30k more than i paid for it.    I certainly would not have been able to save £30k in that period as well pay rent.  

I am always in the 'get on the ladder sooner rather than later' camp.   

No one but you and your partner can answer your 3rd question

csgohan4

I did a mixture of 2 and 3 and saved 20% for a better mortgage rate and more manageable mortgage. Personal preference what you want tbh. 

onetimeatponycamp

Are you eligible for Help to Buy? I'm looking to buy a HTB property in the South East. The mortgage rates for HTB are better than a 95% mortgage outright, and you can use the money you save to put into savings towards paying off the HTB loan at the end of the interest free term.

amnblog

@onetimeatponycamp has come up with option 4.

Suzuka96

Htb mortgages do not come without extra costs so you need to balance that out.  We were lucky and remortgaged ours out after two years but probably costs were over £1k (and for htb value same as purchase)

firstascent123

My partner and I relocated from the South East to Derbyshire just over 4 months ago and will be buying our first house this year. I was lucky enough to be able to change work site and still keep same role and salary. We are renting in a lovely location on the edge of the Peak District and aim to buy in this area too. Our choices down South were a flat or shared ownership (which just doesn’t make sense to me), now we can afford a lovely house in a nice location so for us it was a no brainer. The fact that my new work location and everyone up here is so much nicer as well is the icing on the cake.