95% mortgages

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JoeBloggs

JoeBloggs

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My parents got on the housing ladder with a 100% mortgage back in the 1980s and it was the only way they could get on it, along with a bank staff low % mortgage. I think it could work, however, I’m not sure the majority people today have the same understanding of equity and how overpayments to improve it.

We are about to enter years of uncertainty, negative equity could become reality on a 95% mortgage and with such a low LTV the interest will be higher therefore is it actually affordable, especially under the new affordability regulations.

It’s easy to say these grand schemes to appear popular but in reality, much harder to implement.
 
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JoeBloggs

JoeBloggs

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Italy2 said:
I think the lending criteria is 4.5 times the salary
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And that's only with some banks, most are 4x. When we got our mortgage (2017) we earnt £65K between us, needed a 4.5x mortgage so only had the choice of Barclays or Metro and still needed £75K deposit. We could easily pay more on our mortgage but because of the affordability criteria now they wouldn't lend us any more. I really do feel for people who cannot get the deposit together but could easily afford the mortgage payments, it's a never ending cycle.
 
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WilmaHun

VIP Member
Italy2 said:
I have been reading up and apparently the high LTV mortgages won't be coming back this year. Does anyone know which banks are offering 90% ATM if any?!?
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I've not been able to find any. All the "apply online" bits say 85% which is too much!
 
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hnoz

VIP Member
In 2018 pretty much every bank offered us 4.5k, several offered us 4.75. It isn't that rare to get a multiple of 5x for a single applicant.

We ended up doing 4.75x which was a relatively risky but the property was undervalued for the area and we did a renovation so we were fairly certain we would quickly drop down a few LTV brackets, which we did. We bought at 90LTV and when we remortgaged 1.5 years later to 75LTV.
I wouldn't feel comfortable at 95LTV, I have a friend who bought with a 10% deposit at and 2 years later had to pay a lump sum in order to stay on 90LTV as her property had lost value. This is so easy with only 5% in the property, particularly because interest rates at this level are much higher so it is very difficult to play catch up and gain more equity without substantial overpayments.

It isn't that rare to get a multiple of 5x for a single applicant.
 
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Italy2

Chatty Member
JoeBloggs said:
And that's only with some banks, most are 4x. When we got our mortgage (2017) we earnt £65K between us, needed a 4.5x mortgage so only had the choice of Barclays or Metro and still needed £75K deposit. We could easily pay more on our mortgage but because of the affordability criteria now they wouldn't lend us any more. I really do feel for people who cannot get the deposit together but could easily afford the mortgage payments, it's a never ending cycle.
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How on earth did you get a £75k deposit? I am sorry if it's a personal question, you don't have to answer