First time buyer 95 LTV

Kraskoa

Hi all, 
Been looking for my first property right before covid19 pandemic began and I've had mortgage in principle with santander but it run out. Now santander are only giving mortgage for 85% ltv. I was looking for 95Ltv. What banks are still giving mortgages for 95% ltv? 

dani17

how much is the mortgage? if it is not too high, you can find a lender but the rate will be ridiculous 

NinjaTune

Not sure about banks but Newbury don't seem to be offering anything below 70% LTV at the moment.

I think you'll struggle to find a mortgage for 95% at the moment and, as dani says, the rate will probably stretch your finances.
Edited: weird but uswitch is saying Newbury will offer a 95% but their site said differently earlier today.
https://www.uswitch.com/mortgages/95-ltv/?utf8=%E2%9C%93&sort_by=&category=first-time-buyer&property_value=168421.05&loan_amount=160000&ltv_val=95&mortgage_period=25&mortgage_type=any&repayment_method=capital_repayment&initial_period=-1&cb=1

momo1103

I know someone who has secured a 95% LTV mortgage with HSBC. I would advise that you use a whole of market mortgage broker to help you find the best mortgage for you. 
I would recommend the mortgage broker I am using at the moment they would do a free search for you and you would be under no obligation to do anything they advise. (Not sure about forum rules so won't mention them here but happy to be messaged and you can do your own research on them)

eddddy

momo1103 said:

I know someone who has secured a 95% LTV mortgage with HSBC. 

But when did they arrange it?

This article is dated 20th April 2020:

HSBC has axed its mortgages for those with small deposits of only five per cent, as well as buy-to-let deals for landlords.
Link: https://www.mortgagesolutions.co.uk/news/2020/04/20/hsbc-removes-95-per-cent-ltv-deals-from-sale/

I'm not sure that HSBC have started offering 95% mortgages again yet.

If your contact got their mortgage offer earlier, I suspect HSBC will be honouring earlier offers.

GoingOn30

It's not a great time to purchase at 95%LTV as you could find yourself in negative equity by next year. 
Definitely do not proceed unless you expect to stay in the property for the longer term. I would be trying to save more to achieve a 10% deposit in any case and wait for property prices to fall further over the next few months.

Brock_and_Roll

Second that - there is no need to rush into  a purchase right now. Best case scenario you will have a higher deposit and get to buy somewhere at a lower price. Worst case scenario, you will have a higher deposit, get a better rate and prices will be much as they are now.
As a first time buyer (i.e. likely to want to move in a few years due to kids etc), negative equity can be a real issue.

purple_ck

would this be the same if I had a mortgage offer for LTV 94% and no longer going for that property ? would I still be able to get the 94% LTV on another one (that we would be staying in long term) still saving each month too

pinkpiglit

You might be better off posting your question in the Mortgages board:  https://forums.moneysavingexpert.com/categories/mortgages-endowments

purple_ck

pinkpiglit said:

You might be better off posting your question in the Mortgages board:  https://forums.moneysavingexpert.com/categories/mortgages-endowments

thank you 😊

AdrianC

purple_ck said:

would this be the same if I had a mortgage offer for LTV 94% and no longer going for that property ? would I still be able to get the 94% LTV on another one (that we would be staying in long term) still saving each month too

Probably. Effectively, you're talking about acceptance in principal (AIP) - the lender are happy to lend YOU the money, but they just need to turn it into a full acceptance when you can show them the property, so they know it's good security for their money.