The return of mortgages with 5% deposits!

JamesC3

I keep seeing the word “young” mentioned on the BBC website re the above. Does this mean the planned 5% mortgages will only be available to under 30’s or under 40’s ? 

[Deleted User]

JamesC3 said:

I keep seeing the word “young” mentioned on the BBC website re the above. Does this mean the planned 5% mortgages will only be available to under 30’s or under 40’s ? 

no, if its like the last version it will be open to anyone.  Its likely that its just for headlines as the majority of people impacted are younger. 

Its not really a 'scheme' for buyers,  its an insurance policy for lenders to lend without losing a butt tonne of money if properties are repossessed in a recession.

Missboo

This will be quite nice for us, I would rather keep some savings back for a rainy day. It means we can move faster too.

LMJ10

This is interesting. Unfortunately we are having to go through adverse lenders. I know they all
offered HTB so wonder if they will offer this? . A lower deposit will be such a help to us as it would mean clearing debt as well as
moving 🤞

K_S

LMJ10 said:

This is interesting. Unfortunately we are having to go through adverse lenders. I know they all
offered HTB so wonder if they will offer this? . A lower deposit will be such a help to us as it would mean clearing debt as well as
moving 🤞

@lmj10 Impossible to say until we get more detail on the products arising from this policy. But practically speaking I don't see the scheme rules discriminating based on credit history criteria, they'll leave that to the lenders to price in.

LMJ10

K_S said:

LMJ10 said:

This is interesting. Unfortunately we are having to go through adverse lenders. I know they all
offered HTB so wonder if they will offer this? . A lower deposit will be such a help to us as it would mean clearing debt as well as
moving 🤞

@lmj10 Impossible to say until we get more detail on the products arising from this policy. But practically speaking I don't see the scheme rules discriminating based on credit history criteria, they'll leave that to the lenders to price in.

Do you think it will be a scheme like HTB where you put 5% in and the government help with the remaining 10/15/20% or just a 95% mortgage? 

Thanks for replying 

K_S

@LMJ10 If it's anything like the last H2B mortgage guarantee scheme, it'll just be a 95% LTV product at the front-end.

MWT

LMJ10 said:

Do you think it will be a scheme like HTB where you put 5% in and the government help with the remaining 10/15/20% or just a 95% mortgage?

Based on details released so far it is not a 'scheme' from the buyer perspective at all, it is just a support package for the lenders to encourage them to offer normal 95% LTV products, so I would expect anything else, and you will of course have to be able to meet the affordability test for a 95% mortgage as well just like normal...

LMJ10

K_S said:

@LMJ10 If it's anything like the last H2B mortgage guarantee scheme, it'll just be a 95% LTV product at the front-end.

Do you think you’d be able to put 10% down? Basically we are waiting for the 90% products to reappear.
wonder if you can put an extra 5% down to?

MWT

LMJ10 said:

K_S said:

@LMJ10 If it's anything like the last H2B mortgage guarantee scheme, it'll just be a 95% LTV product at the front-end.

Do you think you’d be able to put 10% down? Basically we are waiting for the 90% products to reappear.
wonder if you can put an extra 5% down to?

You will just go for a 90% LTV product in that case.

This new announcement isn't a scheme you use as a borrower, it is just something to encourage the lenders to offer 95% LTV products.