HALIFAX 95% - the big guns have landed

[Deleted User]

As a 30 year old earning the average wage (for London) it is of no use to me whatsoever. I already have 45k but the banks will not lend me the money in the form of a mortgage big enough, even though I easily afford the repayments. 

Maybe in three/four years when I have over 100k saved I might be able to buy a decent place. 

willow_alex

K_S said:

@willow_alex Where have you seen this? I would be surprised if there was anything in the rules that stopped you from doing a capital-raise remo at the end of the fixed term, if at all the numbers stacked up.

The one and only reference is on NatWest’s webpage on 95% mortgages, it’s the last point in the red coloured section (unfortunately MSE forum rules say I can’t share links just yet but, sorry) but I can’t find it anywhere else so am quite confused. This would put us off all G-backed mortgages completely if they are all restricted. 

K_S

willow_alex said:

K_S said:

@willow_alex Where have you seen this? I would be surprised if there was anything in the rules that stopped you from doing a capital-raise remo at the end of the fixed term, if at all the numbers stacked up.

The one and only reference is on NatWest’s webpage on 95% mortgages, it’s the last point in the red coloured section (unfortunately MSE forum rules say I can’t share links just yet but, sorry) but I can’t find it anywhere else so am quite confused. This would put us off all G-backed mortgages completely if they are all restricted. 

@willow_alex Can't speak for NatWest, but from a quick look all it looks like is that you can't take it any additional borrowing while on a mortgage guarantee product and there's nothing stopping you from remortgaging away with a capital raise at any point to a non mortgage guarantee product.

Tbh, it's likely academic anyway. If you've borrowed at 95% LTV, the likelihood of the numbers and criteria stacking up for a further advance / capital raise in the first few years is very low.

getmore4less

willow_alex said:

I’ve seen NatWest mention no further borrowing for 7 years. Is this a NatWest rule or a government rule? And if government, does it follow you for 7 years or ends when you remortgage for a non government backed mortgage, say at the end of your initial term? 

We are deciding between 90 & 95 but want to be able to remortgage in a few years (I.e less than 7!)  to be able to do renovation / home improvements. 

When you say a few years to take additional borrowing how many are you thinking?



this is the link.

https://personal.natwest.com/personal/mortgages/offers-and-schemes/95-percent-mortgages.html

Also, you will be unable to take out any additional borrowing on your mortgage for the next 7 years.

also repeated on this link
https://personal.natwest.com/personal/mortgages/offers-and-schemes/95-percent-mortgages/mortgage-guarantee-scheme.html


AIUI additional borrowing is limited to 80% with Natwest 

the 95% rates with NW are 3.9% and 4.04%

the follow on is 3.59% probably worth considering the 2 years and dropping to SVR unless you think rates will go up.


at 4% over 25y &30y LTV would get to 

2y 90.39% 91.59%
5y 82.75% 85.93%
7y 77.12% 81.76%


to get to 80% in 5 years  at 3.59% needs a payment equivalent to 

95% 22.6y full term.
90% 28.4y full term

mjane93

Has anyone applied for a 95% mortgage with Halifax. We are looking into it but heard they don’t allow gifted deposits. I am on their website but can’t find anything that says that re using the government scheme?? 

K_S

mjane93 said:

Has anyone applied for a 95% mortgage with Halifax. We are looking into it but heard they don’t allow gifted deposits. I am on their website but can’t find anything that says that re using the government scheme?? 

@mjane93 Unless there's something unusual about the giftor, Halifax don't have an issue with a gifted deposit for their 95% product. With regard to a gifted deposit, their policy is the same as the rest of their range.

EDIT: Needless to say, the above is a general statement, not to be taken as advice as I know nothing about your individual case or the background

stickery

Does a 50% deposit, post 3 years bankruptcy open up more lenders or just better rates with the standard adverse lenders? What sort of rate?

Thanks