95% LTV mortgages - 5% deposit mortgages - 2021

lonibra

SaucySecrets said:

I’m really new to mortgages so excuse my naivety 

Why are flats excluded?

I think it depends on the bank. Accord 95% is a no for old flats but it looks like the BOI 95% deal doesn't exclude old flats.

70Jenny2184

Thank you for starting this thread.

In January 2020 I was approved for a 95%LTV 5 year fix mortgage by HSBC at 3.14%.  Covid has changed the area where I want to buy so in that sense I don't regret not purchasing last year but I do hope rates fall to similar levels this year. 

K_S

UPDATE : Skipton announces 95% LTV products - both standard and shared ownership

• only for FTBs
  
• Max loan size of 450k
• max LTI 4.49x
• Standard purchases: fee-free 4.17% 5 year fix
• Shared ownership: fee-free 4.52% 5 year fix. Available for new build flats and houses.
  

ukri

Interesting. 3 mainstream lenders already, including one for shared ownership. And none of them appear to use the govt scheme. 

wonder when the 2 year fixes will come in. You would have to be desperate to fix at 5 years at these rates.

bamgbost

My understanding is that the new government scheme has mandated those mortgages to be fixed for 5 years! (rather than 2).

We just dont know what rate those will be set at.

RelievedSheff

ukri said:

Interesting. 3 mainstream lenders already, including one for shared ownership. And none of them appear to use the govt scheme. 

wonder when the 2 year fixes will come in. You would have to be desperate to fix at 5 years at these rates.

The 2 year fixes won't come. There is too much uncertainty with the housing market for the lenders to risk 95% LTV over such a short fixed rate.

tlc123_2

I’m watching this thread as we’re hoping that the new mortgage guarantee scheme might be suitable for us. I bought
my current house (new build) following my separation-we’d had to split equity in half so I used help to buy to buy the only house in my budget 😂 it was fine for three of us, but now my partner and I want a house together, plus there’s more of us now so need more space but with it being a New build we’ll only break even so we’re not quite going to make it to a 10% deposit I don’t think. our incomes are good though so borrowing level/repayments should be ok (although we’re not intending to borrow as much as we could probably get as we’re hoping to get something that needs a bit of updating). I’m just hoping the interest rates aren’t astronomical.....

willz45

Do people think that these 95% mortgages will be available to those who are not moving but looking to borrow more for home improvements?

[Deleted User]

willz45 said:

Do people think that these 95% mortgages will be available to those who are not moving but looking to borrow more for home improvements?

not likely.  That would be for further advances if sticking with existing lender or a remortgage if moving lenders.   Further advances are usually capped at up to 85% and remortgages at 95% will be so far down lenders wish list of products to offer that I wouldnt expect them anytime soon.   Even pre covid there was only less than a handful of lenders lending at that level on remortgages

K_S

bamgbost said:

My understanding is that the new government scheme has mandated those mortgages to be fixed for 5 years! (rather than 2). We just dont know what rate those will be set at.

@bamgbost As far as I can tell, the requirement is slightly less prescriptive. As per the published document, all it says is that the lender has to offer a 5-year fix as part of the mortgage guarantee range. So, as I interpret it, they could offer (for example) a 5-year fix and a 2-year fix but couldn't offer just a 2-year fix. I hope that makes sense.

"It will be a requirement that any lender participating in the scheme must offer a five year fixed rate product as part of their range of mortgages offered under the guarantee."