95% LTV mortgages - 5% deposit mortgages - 2021

getmore4less

I did not know of the top of my head how 4% compared to before covid so had a look back at 2018 and found one of my posts 
https://forums.moneysavingexpert.com/discussion/comment/74888859/#Comment_74888859
this is what I had for that Oct 2018. (the numbers were for a £600k house and doing a cost analysis of bigger deposits)

Just taking one lender nationwide 2y fix £0/£999 fee rates(you need the fee versions) and amount borrowed
95% 3.64%/3.24% £570k (max £350k)
90% 2.29%/1.89% £540k (max £500k)
85% 2.09%/1.69% £510k
80% 2.09%/1.69% £480k
75% 1.99%/1.59% £450k
60% 1.94%/1.54% £360k

those at the higher end of LTV  are lower back then against NW today(purchase varies a bit for FTB, remortgage retention.)

90% 3.44%/3.19% 
85% 2.84%/2.54%
80% 2.49%/1.99%
75% 1.94%/1.44%
60% 1.54%/1.24%

I also see they have an existing borrower 95% product(with restrictions)

95% 3.99%/3.54%

I don't remember that far back but were 90% 2 years fixes really available for 2%?

looking at my download archive(old PC) for a few lenders I see 90%LTV 2%(with fee) rates Jan  2020  and 95% around 3%-3.5% around that time as well

Thrugelmir

@K_S Any term restriction? 

K_S

Thrugelmir said:

@K_S Any term restriction? 

@Thrugelmir Nothing mentioned in their product email so I assume it's their usual 40 years.

lonibra

Does Yorkshire Building Society usually follow Accord, as they are the same bank?

[Deleted User]

Why are new builds excluded? Overpriced?

RelievedSheff

[DELETED USER] said:

Why are new builds excluded? Overpriced?

New builds tend to drop in value in their first couple of years. With only  5% deposit there isn't a lot of wriggle room before you are in negative equity.

Much the same as anything else that is new. Once it has lost that newness it isn't worth as much as it was when it was new.

It isn't always the case though and not all new builds will drop in value. But from a lenders point of view it is risky lending 95% on  a new build property.

HopeAndDriftWood

I’m really new to mortgages so excuse my naivety 

Why are flats excluded?

getmore4less

[DELETED USER] said:

Why are new builds excluded? Overpriced?

There is existing support for new build with 5% deposits in the form of H2B:Equity loan

chasingfreedom

getmore4less said:

[DELETED USER] said:

Why are new builds excluded? Overpriced?

There is existing support for new build with 5% deposits in the form of H2B:Equity loan

But only for FTB. I can't utilise that personally because i owned a house 15 years ago, even though I'm renting now.

K_S

UPDATE: Bank of Ireland - from 18 March 2021

• Intermediary only, available to FTBs and home-movers
• 150-500k loan size
• max LTI 4.49x
• excludes all new-builds
• only one product announced : 4.05% 5-year fix, no product fee, not through the mortgage guarantee scheme