97% mortgage - anyone other than Halifax?

RubyShoes

Just wondering if anyone knows of any other lenders who will lend up to 97% LTV.
I am a FTB and have a £5000 deposit, and was initially looking at properties around the £100,000 mark. However, due to a significant increase in income, and a lack of decent properties around that price, I am now looking up to £130,000.

I am unable to get together any more deposit currently - and therefore am looking at what mortgage options are avaliable to me.

Halifax were looking the best option for me before I increased my price range, and obviously they go up to 97% which is good for me. However, I want to see what other options there are.

Id rather not go down the 100% route by the way.

Skeekwarton

Hi Ruby,

I, too, am in a similar position regarding deposit on FTB mortgage and would prefer 97% LTV. I've been looking around for a while and the only provider I can see that does this is Halifax.

Sorry, not much help I know but I'd be interested to hear if any other companies offer this.

Skeek

MarkyMarkD

A&L will lend up to 125% LTV. They are not unique in this regard.

homer_j_3

With the halifax, you would have incurred a Higher Lending Charge, which I am guessing that you would have been adding to the mortgage. This effectively would have eaten into the 5k deposit that you had.

If 5k is your only savings, what are you doing for costs of solicitors, stamp duty, surveys and some of the other moving costs that you will incur?

You do not want to go down the 100% route and there may be other options available but you need to speak to a professional to ensure that you adopt to he correct strategy to buying your first home. They will cost it properly for you and may actually ensure that you have covered all of the costs correctly.

RubyShoes

Hmmm - higher lending charge. I have heard about this - but there is no mention of it anywhere on Halifax's website (or any other website I have looked at for mortgages!)

SD and Sols fees are being paid by the vendor - agreement was £2000 cashback on complition for SD and sol's fees.

RubyShoes

I forgot to add that I am paying for any remaining fee's (survery, and searches) out of my monthly income.

homer_j_3

Dont you watch TV... That is what the nationwide guy goes on about lol.

Yes there is a HLC on the mortgage, unless they have scrapped it recently but not used them for a while. I think on a 100k, the HLC worked out about 1500. I will do a quick look for you in a few mins to double check.

As I said, it would be beneficial speaking to someone who can ensure that you are not caught out in the way you may have been.

Just checked and the Halifax will charge you 7.25% of the amount that takes your advance over 75%. This is unless you can put a 10% deposit down. If you add it to your mortgage, it is charged at the standard variable rate too, not the preferential rate that you are paying for the rest of the mortgage.

MarkyMarkD

Yes, the very misleading Nationwide advert which fails to mention that Nationwide charge their own form of HLC, by pricing in LTV bands.

Borrowing over 90% from Nationwide, on a product of 5, 10 or 25 years, is in fact far more expensive (in terms of Nationwide's pseudo-HLC) than paying a true HLC to another lender.

RubyShoes

LOL - I don't really watch much TV, but yes, I have seen it on the Nationwide adverts, but have yet to discover what it means for me...!

Off to investigate!

RubyShoes

MarkyMarkD wrote: »

Yes, the very misleading Nationwide advert which fails to mention that Nationwide charge their own form of HLC, by pricing in LTV bands.

Borrowing over 90% from Nationwide, on a product of 5, 10 or 25 years, is in fact far more expensive (in terms of Nationwide's pseudo-HLC) than paying a true HLC to another lender.

Really? Having just checked Nationwide, if I had a 95% mortgage - I could get a rate of 6.03% on a 5 year fixed rate. Reservation fee is £499.

Is it more expensive?

dunstonh

There are plenty of options. What has your whole of market mortgage adviser give you as a list?