Begborrowsteal
VIP Member
Its unachievable for a lot of renters, as rent can be extortionate. We have nothing left over to save after we pay our rent & household bills.
- Notice
Me and my sibling both bought our houses on similar LTV deals. I believe my sibling's was the last 100% mortgage on the market before that disappeared in to the land of "remember when".
Neither of us could have saved up a big enough deposit, we both borrowed sensibly for relatively modest homes, both overpaid at times to build up equity and both did work on them with savings that took time to build up, without needing more loans.
Once we were out of the trap of rent eating all available funds, we were able to benefit enormously and have stable homes.
We have also never missed a mortgage payment.
I don't think 95% mortgages are a bad thing. As long as the mortgage holder is careful with what they choose; And also lucky enough to keep a stable job after it's been taken out.
The last part is the scary part isn't it? Fuck you Covid 19.
Neither of us could have saved up a big enough deposit, we both borrowed sensibly for relatively modest homes, both overpaid at times to build up equity and both did work on them with savings that took time to build up, without needing more loans.
Once we were out of the trap of rent eating all available funds, we were able to benefit enormously and have stable homes.
We have also never missed a mortgage payment.
I don't think 95% mortgages are a bad thing. As long as the mortgage holder is careful with what they choose; And also lucky enough to keep a stable job after it's been taken out.
The last part is the scary part isn't it? Fuck you Covid 19.
Sickofinstacrap
Chatty Member
I got a 95% deposit 3 years ago on a 3.8% apr repayment. Our mortgage was still much cheaper then renting, our deposit was about 12k less then what it would have been at 90% and after 2 years on fixed rate when we remortgaged our repayments went down £250 a month on a 1.8% interest rate and having basically paid of nearly 5 extra %! If you have a great mortgage advisor it really helps! But I would highly recommend!
95% mortgages are rarely beneficial to anyone. It is so easy to fall into negative equity, the current economic situation should make everyone wary of over-borrowing.
There seems to be no details whatsoever on how this is going to work, who is going to back it, how he will encourage backs to lend. The only thing I have seen is that he asked ministers to draw up plans which could remove the stress tests that were increased after the crash. Can't say I think this is a positive move. If a stress test for increasing interest rates for example is a restriction making it difficult for someone to get approved a mortgage then they should not be able to borrow.
There seems to be no details whatsoever on how this is going to work, who is going to back it, how he will encourage backs to lend. The only thing I have seen is that he asked ministers to draw up plans which could remove the stress tests that were increased after the crash. Can't say I think this is a positive move. If a stress test for increasing interest rates for example is a restriction making it difficult for someone to get approved a mortgage then they should not be able to borrow.
Bitofthebubbly
VIP Member
This is so true. We wouldn’t be able to buy a house in the area we’re currently renting without a monstrous (to me) deposit to make up for mediocre wages. Shame really as we like it here.
Ive lost hope about buying lately, sadly it feels like our only hope of getting on the ladder is with any potential inheritance we may get in the future, which is obviously never guaranteed, but I feel wrong thinking about that anyway.
I work in conveyancing, and am currently on the lookout for buying my first home too. At present, the only way of getting a 95% mortgage is on a new build. The biggest developer in my area produces absolute shockers - so I won't be buying a new build. Personally I'm not a fan of new builds anyway.
Speaking to our resident mortgage advisor at work, she can't see 95% LTV mortgages coming in this side of Christmas for FTB like me. In her words "Boris said something which appeals to the masses, and sounds brilliant, but in reality all it was was a throwaway comment which had no context or visible plans behind it".
Personally I'm really hoping 95% LTV does happen soon. At the minute the best my partner and I can find is 85% LTV and we cannot afford to save that amount of money! I'm fortunate that because I work in conveyancing, I won't have to pay much in the way of legal fees, if anything! But even without the legal fees to worry about, I am in no disillusion that buying a house is expensive, so any help I can get by having a smaller deposit I'm going to grab with both hands!
Speaking to our resident mortgage advisor at work, she can't see 95% LTV mortgages coming in this side of Christmas for FTB like me. In her words "Boris said something which appeals to the masses, and sounds brilliant, but in reality all it was was a throwaway comment which had no context or visible plans behind it".
Personally I'm really hoping 95% LTV does happen soon. At the minute the best my partner and I can find is 85% LTV and we cannot afford to save that amount of money! I'm fortunate that because I work in conveyancing, I won't have to pay much in the way of legal fees, if anything! But even without the legal fees to worry about, I am in no disillusion that buying a house is expensive, so any help I can get by having a smaller deposit I'm going to grab with both hands!
AbsolutelyFine
Member
So, Boris has pledged 95% first time buyer mortgages:loans as part of the gvmnt's 'generation buy' scheme. Firstly, do you think this will actually happen? I'm on the fence. While I think the long term effect on the economy could be catastrophic, from a very selfish perspective I would certainly benefit from such a scheme. Am hoping to buy in just over a year and at the moment the most I can dream of is a tiny one bed help to buy apartment. Would be interested to hear people's thoughts.
Corianderismynemesis
Member
I think it’s a great idea. We have very secure jobs but being renters haven’t managed to get together the deposit as we are in an expensive area. This finally makes it achievable!
Sunflower91
VIP Member
I really hope it does come into play. Although I heard it’s coming in 2023 which isn’t useful to people like me who really want to escape renting and nightmare neighbours. I’m single and my parents don’t have the money to support me for a large chunk of money so saving for a deposit of around £25k is a struggle- especially paying London rent. It’s a bit frustrating being able to afford the mortgage repayments quite easily but not having the deposit to get things in motion.
Eltonjohnsflorist
VIP Member
Even without a deposit in many parts of the country People will struggle with affordability- especially with a 95% mortgage.
JoeBloggs
VIP Member
No that's ok, we were very fortunate and my parents gifted us £60K. We had £30k of our own saved, but we missed the stamp duty relief by 2 months so had stamp duty, fees and our house needed £20K worth of work. We still had to move 20 miles from where we lived, to be able to have afforded to buy without help we would have had to complete relocate and I work for the family business so that wasn't possible for us. To add some context, we live in Surrey.
We have been extremely lucky, I know that, we bough an ex council house that had all original 1960s features and had been empty for about a year, we have had to gut the whole thing, we did the work ourselves but we think we have added about £80-100K of value.
We had a 100% mortgage - would never have got on the property ladder without it.
50sGirl
VIP Member
I feel such empathy for anyone trying to get on the property ladder these days.
I was extremely lucky and we bought our first house in 1991 on a 95% mortgage.
I now live in our third house but if I had to start out again today, our salaries would not even be enough to get a mortgage on the very first house we bought, let alone the one we live in now!
l fear my children will never be able to afford a property without the help from us.
I hope the housing bubble bursts so that first time buyers have a chance of buying because house prices are ridiculous now.
I was extremely lucky and we bought our first house in 1991 on a 95% mortgage.
I now live in our third house but if I had to start out again today, our salaries would not even be enough to get a mortgage on the very first house we bought, let alone the one we live in now!
l fear my children will never be able to afford a property without the help from us.
I hope the housing bubble bursts so that first time buyers have a chance of buying because house prices are ridiculous now.
Yeah I saw that too! Do they not expect first time buyers to buy a house now? I highly doubt most first time buyers can put down 15% deposit. 10% is hard enough without help from parents or inheritance etc
JoeBloggs
VIP Member
I don’t think they will be much more that 80% on the table until at least 2021, if the house was to go into negative equity the banks need to protect their investment as best they can.
Martin Lewis said some products were going on the market and being taken off 2 hours later. Things may change when the stamp duty levy stops.
Martin Lewis said some products were going on the market and being taken off 2 hours later. Things may change when the stamp duty levy stops.