5% deposit 95% mortgage after covid 19

Strizy123

Hi does anyone think they will be doing 5 % deposit mortgages after lockdown

Thrugelmir

Somebody will. Whether the product is attractive is another matter. 

ACG

All lenders want to lend, or at least that is what they are saying. 
The issue is that they can not get valuations done and with thousands of applications on hold at the moment it is pointless adding more to the surveyors queues when the lockdown is lifted. So that would lead me to believe that once the lockdown is lifted and the backlog of valuations cleared LTVs will go up, but you may find it takes a few weeks and they do 80%, then 85%, then 90% and 95% over the course of a month or 2 - it will be interesting to see what happens. 

Strizy123

Im just worried as i have a offer been accepted on the house and now all this as happend and we only have a 5% deposit 

graphs

Wanting to buy a house? With a 5% deposit?? In this climate???

I suggest you think again.

Strizy123

I mean after all this has cleared 

Thrugelmir

Given the damage caused to the economy. Lenders are going to be both cautious amd conservative in their approaches. Going to be a very different landscape. 

sjc93

graphs said:

Wanting to buy a house? With a 5% deposit?? In this climate???

I suggest you think again.

I really wish you would stop being so rude in these threads.

sjc93

Strizy123 said:

Im just worried as i have a offer been accepted on the house and now all this as happend and we only have a 5% deposit 

Are you already going through a mortgage application at the moment for a 95% LTV mortgage? There are some building societies who are still offering them, but I'm unsure what their time scales would look like. 

tommyedinburgh

We are in a similar situation, albeit not first time buyers, we didn't plan to move until 2022, however, a house came up for sale in a street where my wife wants to stay - a couple of her friends stay there. It needs completely renovated, new kitchen, wall knocked through, 3 x bathrooms, completely re-plastered and re-decorated, not to mention flooring or front and back gardens landscaped. We managed to get ours on the market two days before the lock-down, if we sell we are faced with serious decisions. 

We can afford to purchase with a 10-20% deposit, however we would like to purchase with a 95% mortgage for 2 years to give us the cash flow to renovate in one go before remortgaging/overpaying in 2 years. I really hope we can secure a 95% mortgage should we secure the property otherwise it will be a slow burner of a refurbishment which we don't want.

Grabs39

tommyedinburgh said:

We are in a similar situation, albeit not first time buyers, we didn't plan to move until 2022, however, a house came up for sale in a street where my wife wants to stay - a couple of her friends stay there. It needs completely renovated, new kitchen, wall knocked through, 3 x bathrooms, completely re-plastered and re-decorated, not to mention flooring or front and back gardens landscaped. We managed to get ours on the market two days before the lock-down, if we sell we are faced with serious decisions. 

We can afford to purchase with a 10-20% deposit, however we would like to purchase with a 95% mortgage for 2 years to give us the cash flow to renovate in one go before remortgaging/overpaying in 2 years. I really hope we can secure a 95% mortgage should we secure the property otherwise it will be a slow burner of a refurbishment which we don't want.

Similar here but a bit further down the line, we’re buying with a 95% mortgage (have our Mortgage offer in place) and it’s the second time we’re buying a house (selling ours at the same time).  It’s a 3 bed, 4 reception room house that’s pretty much perfect; doesn’t even need decorating.  

We could have stretched to 10% deposit, but we’d rather have the cash in case of an emergency.  We’ll overpay though over the next five years so should have a good LTV when our fix ends.  We’re only borrowing 2/3rds of what our adviser said our affordability is, and the fixed repayments are only 1/5th of our joint net income.

The chains in place, we’re happy with what our (cash) buyer offered, and our vendors are moving into an empty bungalow so fingers crossed we’ll get out of lockdown and get exchanged&completed soon, As we intend to live in the house until we’re too old to manage (we’re 27&28 now so I hope that’s at least 40-50 years away) so we aren’t concerned about changes in the market, as long as we get this move done.  The house was worth what it was worth in March and we are happy to pay this.