Help.....mortgage advise!!!! please !!!!

girl2308

Please could anyone give me some advise,me and my partner currently live in a rented house,and want to buy,we both have credit rating that isn't great,but we both work ,we tried for a mortgage last year but were told we needed at least 10% deposit,and and as the houses in the area we live are approx 210,000 ,it seems unlikely that we will ever have that size deposit!!! ,we have a few thousand in savings but will never be able to save enough,what with paying rent ,bills,daughters new shoes etc!!!!,before anyone suggests moving out of the area ,we don't want to, daughter in very good school and my job is local etc,would just really like some ideas of where to look for help!!!! Thanks v much!

beingjdc

You can still get 95% mortgages, but they're expensive. The thing is, in most areas (almost everywhere in the country) renting is much cheaper than a mortgage on a similar property. So if you can't save while renting, you wouldn't be able to pay the mortage (the interest, before we get into repayments).

homer_j_3

I would remain in rented if that is what will allow you to buy daughters new shoes and allow her to remain in the very good school.

If you needed 10% last year you may need 15% this year with the credit crunch. I would look at the rest of the forum and maybe look to reduce your current outgoings and ways to make more of what you do have. Hopefully, this will allow you to start saving towards your hope of buying.

JoJoArmani

I looked at Charcol - online brokers and they will come back with 0 results unless you have 10% deposit - so I think that indicates most if not all lenders will req 10%.

There probably are lenders who will do 5% or less but will charge you through the nose for the pleasure of their business...

Sorry not sure what to suggest...unless there are 75% or 50% share schems. Some new builds will pay your deposit - but this all depends if there are any projects like this in your area.

Or you could borrow from a kind parent? or buy a really cheap crappy house and do it up? Or save like a mad person gone mad until you get that deposit together - there are some other boards on the forums with tips etc for money saving - how to cut your outgoings etc it is suprising what you can save if you try (not that I try too hard lol!)

Best of luck!
JoJo

UK007BullDog

Well there are still lenders out there offering 95%.

Is Charcoal indenpendent whole of market?

I would not trust any online search engine as none of them are 100% exact.

Go and see a broker to help you.

If you cannot get the mortgage then I guess you will have to stay put and rent as you do not want to move out of the area to a cheaper one.

JoJoArmani

re charcol - No I don't think they are. Supposedly they are if you ring them though....? But it gives an indication I suppose of the options available - currently their options do not include less than 10% deposit.

But don't quote me on that! LOL!

Anyway OP gone now so either she gave up or has gone to look at her finances again!?

homer_j_3

Charcol are a massive brokerage and used to be owned by Bradford & Bingley.

They should have access to a wide range of products but the downside of dealing with a massive company is that the personal touch gets lost.

The 10% could have been because of not earning enough or because of credit history.

herbiesjp

95% deals were already high - not because of the credit crunch - but due to the higher risk of borrowing that amount.

There are still lenders happy at 95% lending and the ones I deal with, have raised their rates slightly, but then again so has every other lender - so it is all relative really

Don't forget the Higher Lending Charge that becomes payable with most lender at 95% borrowing