5% deposit 95% mortgage after covid 19

tommyedinburgh

Grabs39 said:

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.

This sounds perfect for you guys.

I'm very mindful that we might need to take a 'hit' on the value we accept for ours, really hoping that we can make a hit of double in terms of what we are buying as the home report value is exactly double.