95% mortgages

Emzlyz

So I've started to panic.

Had my offer accepted a couple of weeks ago, had an AIP from west brom for a smaller mortgage but my broker said she could get me the amount I offered. I applied for my mortgage and have the 5% deposit. However I've just looked on the west Brom building society website and 95% LTV is no longer listed. It was just a week ago!

I spoke to my broker yesterday as west Brom had asked for clarification on a couple of things, I gave her all the info and she said nothing to worry about, it should be ok. But now I'm really panicking. 

I need to buy, I cannot afford to rent (the house I'm buying will cost me about £350pm mortgage, to rent it would be over £550, there are no houses to rent locally for less than £425 and they are further away from work so would need to add in travel expenses to my spending) I currently live with family 25 miles away and cannot afford the commute so have been staying with my partner during the week but he lives with his parents so it's not ideal. He is on a bank contract so he will not apply for a mortgage or rent with me because it's a big risk when he isn't guaranteed hours, especially in the current situation we are in. 

Basically I'm constantly going between calm and not worried that I won't get the house, to petrified that I'm going to be stuck living between 2 houses that are not mine and commuting 25 miles when he's on nights/lates because I can't get a mortgage. 

Any advice? 

PS I work for the NHS and this week has been stressful and that's probably added to my panic tonight 

ACG

You applied before the product was pulled. If they accept you, you will get the product. If not then you will end up looking fo rplan b. 

jimmyjammy001

There is likely a very good reason why they have pulled the 95% mortgages, they obviously know that over the Coming months house prices are going to come down and people are going to lose jobs and unable to pay the mortgage and likely to be in negative equity. I would think very carefully about a 95% mortgage in the current economic climate. 

JustJane101

I'm in exactly the same position. Eagerly awaiting a decision. Kensington have pulled their 95% mortgages two days ago. My application was submitted a few weeks ago, and I *should* know by tomorrow evening. I'm pretty sure they won't pull the rug from under us...I hope. :O

Emzlyz

@jimmyjammy001 my job is very safe, I dont have enough savings for a 90% mortgage, this house isn't a short term investment, it's a family house that we are unlikely to outgrow. Trust me I have thought about this already and I am still going to buy it if the mortgage company give me the mortgage. I also completely understand why they have pulled 95% mortgages but I know plenty of people who are relying on them to get on the property ladder. House prices might come down but they will go back up at some point.

@JustJane101 good luck! Keep us updated x

Emzlyz

Just an update. My application has been frozen by the lender until lockdown is over. My broker offered to look at others but I decided to wait it out. I don't think another lender would make any difference in the current situation. Just hoping I don't lose the house!

JustJane101

Emzlyz said:

Just an update. My application has been frozen by the lender until lockdown is over. My broker offered to look at others but I decided to wait it out. I don't think another lender would make any difference in the current situation. Just hoping I don't lose the house!

frozen?! Did they say why?!

Have they valued the property yet? I was expecting a response yes or no from Kensington this week, however they came back asking for more information that they already had. I hate the fact the waiting game keeps resetting. Last docs uploaded on wednesday, and they've been really slow at looking into things (understandable right now). My valuation has taken place.

freedom010

@JustJane101 & @Emzlyz
Our mortgage application has been a step away from valuation but due to covid-19 lender informed that valuations are not available now. Next day we had a refund of valuation fee and information that application has been declined due to covid-19 and restricted borrowing. Lender suddenly claimed that one of our jobs is at high risk at the present time. Unfortunately, more and more banks now have frozen mortgages for new customers so I guess we just have to wait and see when all this madness ends. We were applying with Precise. 

JustJane101

freedom010 said:

@JustJane101 & @Emzlyz
Our mortgage application has been a step away from valuation but due to covid-19 lender informed that valuations are not available now. Next day we had a refund of valuation fee and information that application has been declined due to covid-19 and restricted borrowing. Lender suddenly claimed that one of our jobs is at high risk at the present time. Unfortunately, more and more banks now have frozen mortgages for new customers so I guess we just have to wait and see when all this madness ends. We were applying with Precise. 

This whole situation is really, really horrible. I feel bad for those who are dying... but if you're like me and going to a 'sub prime' lender because in reality, there isn't much in the way of options it is scary. I can't just strole into a bank and ask for a mortgage!

JustJane101

https://www.precisemortgages.co.uk/  

Read their decleration. That's a pretty bad move on their part.

JustJane101

FOR Goodness sake ! I've just made the mistake of going onto Kensington's site. They are no longer accepting Forces Help to Buy... @ACG ...I know you've answered stuff like this a million times, but I've applied for 95%LVT with Kensington using the Forces Help to Buy because they wouldn't accept my origional deposit source. They are now not offering any of these. They requested new payslips on wednesday (Application submitted on 05/03 and valuation done.) My Broker was confident I wouldn't have any issues getting it, but now I feel like they're going to reject it because of this.

What is your opinion on this? Are they going to try harder to reject people for the products they've pulled. On their website their reason for doing so is : THIS PRODUCT IS NOT AVAILABLE: Due to the current climate, we are currently unable to accept Help to Buy.

I'm REALLY not dealing with the anxiety.