Any lenders offering 95% mortgages yet?

GinG

GinG

GinG

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A few weeks ago I heard wispers of 95% mortgages coming back.

Has this happened or was it just rumours?

1st time buyer here, I know you dont get as good a deal as with a greater deposit, would mean we could move in sooner!!

Anyone know of who could be offering these if they are being offered?
 
Duke said:
I hope not.
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Why not? As long as you dont go over the top with what you can borrow I see no reason why not, its when you borrow silly amounts that you can just about afford it gets worrying, having £1,500+ after bills is a good float in my opinion.
 
I think that the Post Office are, and another lender.

I saw it in the Sunday Times Money section a few weeks ago. Not had a look in yesterday's yet.
 
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first time buyer = screwed.

the lenders here are only offering to the average earner 50% of what a one bed flat is worth.

good luck living with your parents until your 30.
 
GinG said:
Why not? As long as you dont go over the top with what you can borrow I see no reason why not, its when you borrow silly amounts that you can just about afford it gets worrying, having £1,500+ after bills is a good float in my opinion.
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Because house prices are still coming down - the fact that the lenders want at least a 10% deposit shows that they think this will continue.
 
Duke said:
I hope not.
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imo the problem isn't with the % of the mortage vs. property value
but more the % of mortgage vs. income

saving for a 30% deposit on a property whilst still paying rent is unachieveable for many - where as paying a mortgage in itself would cause no problem

like the OP - waiting for lenders to offer decent rates for something less than 60%LTV :(
 
dalin80 said:
first time buyer = screwed.

the lenders here are only offering to the average earner 50% of what a one bed flat is worth.

good luck living with your parents until your 30.
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Not really. I'm a first time buyer and will be moving into my new house around June/July time :p

It helps that I went with David Wilson homes and have bought a brand new house, they pay the 15% deposit and we get a mortgage for the rest, quite easy actually if your credit is good.
 
GinG said:
Why not?
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If house prices drop another 10% you'll owe more than the place is worth. That's why. The bank is not to know whether you're about to lose your job as recession bites, or have to take a pay cut, so they need a bigger buffer to protect them. Or rather, to protect us the taxpayer. It's taxpayers, whether they own, rent, or live with parents, who are subsidising mortgages* now whether we like it or not.

Andrew McP

*by providing the guaranteed capital to prop up bank reserves and allow them to lend
 
To give you an idea, seen a 3 bedroom, modern terraced house, garden front & rear, also has a garage - £134,950

10% deposit isnt a problem, its just the time, I am needing to pay off a 5k on a loan I need to get rid before looking at a mortgage, so I have worked out on 10% we could look into getting a mortgage in Feb, if we could get away with a 5% we could move in late this year.

Also the other thing is things like sofas / dining table / white goods. I would like to keep £3k aside for these.

Its really annoying as the mortgage is not a problem, its affording the deposit like people have said!
 
Andrew_McP said:
If house prices drop another 10% you'll owe more than the place is worth. That's why. The bank is not to know whether you're about to lose your job as recession bites, or have to take a pay cut, so they need a bigger buffer to protect them. Or rather, to protect us the taxpayer. It's taxpayers, whether they own, rent, or live with parents, who are subsidising mortgages* now whether we like it or not.

Andrew McP

*by providing the guaranteed capital to prop up bank reserves and allow them to lend
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Negative equity isn't a problem unless you plan to sell. Just keep living in the house.
 
dalin80 said:
first time buyer = screwed.

the lenders here are only offering to the average earner 50% of what a one bed flat is worth.

good luck living with your parents until your 30.
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Depends where you are in the UK I guess, I could get a 2 bed terrace if I look slightly out in places like darlington / middlesbrough for like £50k, but who wants to live there! :p

And why until 30? Depends on your wage I guess, I am lucky that my gf is a nurse so on a pretty decent wage to. If we were both on an admin wage then it would be very hard!
 
vonhelmet said:
Negative equity isn't a problem unless you plan to sell. Just keep living in the house.
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... unless you lose your job and can't afford the mortgage. Then it becomes a pretty big problem.

That's why lenders are so reluctant to offer mortgages with such small deposits.
 
vonhelmet said:
Negative equity isn't a problem unless you plan to sell. Just keep living in the house.
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It is for lenders though who don't know how low the market is going to drop.

95% is a bit high but in a gradually increasing or booming market not really the end of the world having that but in this current market for lenders it is a huge risk, even 90% is pushing it.
 
Tunney said:
... unless you lose your job and can't afford the mortgage. Then it becomes a pretty big problem.

That's why lenders are so reluctant to offer mortgages with such small deposits.
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That's a pretty big problem regardless of negative equity, though I concede it's easier to get out of the mess if you aren't left with a debt.

Mind you, why would you want to sell your house just because you've lost your job? In this country it is imperative that you own property as renting is for plebs.

:rolleyes: (not directed at you, just at the prevailing attitudes in this country)
 
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