90% LTV during Covid

LittleNinja

My partner and I are first time buyers and have found a property to offer on - the property is well within our affordability it is just our deposit that is holding us back. 

Our broker identified a rate for us mid-lockdown but held off AIP in case new rates came up. Now that we're ready to offering we're told there isn't anything for us right now but should be in the middle of the week as more deals are likely to be released at the start of July. 

We've been encouraged to still offer on the property as we should be able to get something! Does this seem likely? Should we let this property go and wait a few more months for normality or trust the brokers judgement? 

LittleNinja

I might not be wording things correctly we could borrow a lot more if we had a higher deposit - the monthly repayments are well within our means for the amount we are looking to borrow (£700 less a month than our current rent)

Grabs39

LittleNinja said:

I might not be wording things correctly we could borrow a lot more if we had a higher deposit - the monthly repayments are well within our means for the amount we are looking to borrow (£700 less a month than our current rent)

A certain forum member likes to criticise anyone who attempts to purchase a property.  You can safely ignore them, someone with a more in-depth knowledge of the current Mortgage market will be along soon with some help. 🙂  Affordability was the correct terminology and everyone will know what you meant.

GDB2222

LittleNinja said:

My partner and I are first time buyers and have found a property to offer on - the property is well within our affordability it is just our deposit that is holding us back. 

Our broker identified a rate for us mid-lockdown but held off AIP in case new rates came up. Now that we're ready to offering we're told there isn't anything for us right now but should be in the middle of the week as more deals are likely to be released at the start of July. 

We've been encouraged to still offer on the property as we should be able to get something! Does this seem likely? Should we let this property go and wait a few more months for normality or trust the brokers judgement? 

Well, the 1 July is the day after tomorrow, so you'll know by then whether the broker is just stringing you along. 

Crashy_Time

LittleNinja said:

I might not be wording things correctly we could borrow a lot more if we had a higher deposit - the monthly repayments are well within our means for the amount we are looking to borrow (£700 less a month than our current rent)

Sounds like you are paying WAY more than you need to for rent?

Crashy_Time

Grabs39 said:

LittleNinja said:

I might not be wording things correctly we could borrow a lot more if we had a higher deposit - the monthly repayments are well within our means for the amount we are looking to borrow (£700 less a month than our current rent)

A certain forum member likes to criticise anyone who attempts to purchase a property.  You can safely ignore them, someone with a more in-depth knowledge of the current Mortgage market will be along soon with some help. 🙂  Affordability was the correct terminology and everyone will know what you meant.

The correct terminology would be "Bank`s Affordability Criteria" in that case, meaning how much debt they will let you have, as strictly speaking if you can afford something you just buy it? Looking forward to the in-depth mortgage market lesson which may or may not appear soon!

LittleNinja

GDB2222 said:

Well, the 1 July is the day after tomorrow, so you'll know by then whether the broker is just stringing you along. 

True! Unfortunately, we made our first offer on the property this morning with the understanding our broker wouldn't have an issue getting us a mortgage. 

I don't want to string the EA/vendor along.

haras_n0sirrah

There are lenders doing 90% - I booked two of them this week

MysteryMe

I would not make offers until you know what sort of mortgages are on offer.  You are only a credible buyer if you can proceed. It should not be a case of you being able to " get something" you want to be able to get a mortgage that best suits your needs. It's a major commitment so you need to consider all options.  Hopefully you wont have to wait too long. 

Crashy_Time

haras_n0sirrah said:

There are lenders doing 90% - I booked two of them this week

What are the interest rates like?

GDB2222

Crashy_Time said:

haras_n0sirrah said:

There are lenders doing 90% - I booked two of them this week

What are the interest rates like?

I'm not sure what all the mystery is about? Just go and have a look at:
https://www.moneysupermarket.com/mortgages/rates-table/first-time-buyer

It looks like there are 5 year mortgages with 90% LTV at around 2.5%.  I've no idea how picky the lenders are.