Best 10% deposit mortgages on the market

[Legend83]

Just had an offer on a house accepted.

Nationwide verbally agreed to let us have our old rate back for the amount borrowed on our old house if we took out a new mortgage within 6 months of redeeming the old one.

I should have got this in writing. They have now decided they won't offer it. The difference between the monthly payment we would have got with the better rate and their 5 year fixed @ 6.59% is about £400 - a substantial amount on a £260k house. I am now worried that we would be stretched.

So experts, what are the best 10% deposit mortgages on the market at the moment and is anyone in the know aware of any more 10% products being released - is sentiment getting better for lower LTV?

[scotal]

Legend83 said:

Just had an offer on a house accepted.

Nationwide verbally agreed to let us have our old rate back for the amount borrowed on our old house if we took out a new mortgage within 6 months of redeeming the old one.

I should have got this in writing. They have now decided they won't offer it. The difference between the monthly payment we would have got with the better rate and their 5 year fixed @ 6.59% is about £400 - a substantial amount on a £260k house. I am now worried that we would be stretched.

So experts, what are the best 10% deposit mortgages on the market at the moment and is anyone in the know aware of any more 10% products being released - is sentiment getting better for lower LTV?

For 90% ltv, and not knowing a great deal about you, 6.59% isnt all bad.
85% ltv would make life more bearable for you, 80% would be much better. 75% would be better still


Assuming you fit with the lenders income calcs of course.


ETA the ecology building society will do a 6.45, but they insist you meet their green criteria.

Edited by scotal on Friday 28th November 16:28

[briSk]

i hope you've come to an arrangement with the vendor over the stamp duty seeing as you're paying £260k...

(£7.2k stamp vs. 2.5k if you'd paid £250K)

[Dr KT]

We got offered a 90% mortgage; 5.75%.

We are going for a 95% mortgage; 6.3%, 3 year fixed via a broker, with Bank of Ireland.

Tracker was following the BOE base rate at +3.26% with a 10% deposit.

[Landlord]

briSk said:

i hope you've come to an arrangement with the vendor over the stamp duty seeing as you're paying £260k...

(£7.2k stamp vs. 2.5k if you'd paid £250K)

My first house was £260k and, as it was a sellers market, I ended up paying all of the stamp. It stuck in my throat for a good while afterwards, I tell you.

[scotal]

Dr KT said:

We got offered a 90% mortgage; 5.75%.

We are going for a 95% mortgage; 6.3%, 3 year fixed via a broker, with Bank of Ireland.

Tracker was following the BOE base rate at +3.26% with a 10% deposit.

First start deal?

[Legend83]

briSk said:

i hope you've come to an arrangement with the vendor over the stamp duty seeing as you're paying £260k...

(£7.2k stamp vs. 2.5k if you'd paid £250K)

Yeah, already got that agreed - they are paying the difference.

Seen a 2 year fixed rate at 6.09% from Britannia which looks the best, but still works out at £1,416 a month which feels a bit on the heavy side.

We are both in decent jobs (primary teacher/accountant) but it is easy to feel nervous in the current climate.

[Legend83]

Dr KT said:

We got offered a 90% mortgage; 5.75%.

We are going for a 95% mortgage; 6.3%, 3 year fixed via a broker, with Bank of Ireland.

Tracker was following the BOE base rate at +3.26% with a 10% deposit.

Tell me more.

[Dr KT]

Hi,

First time buyers yes.

Married- combined inc must be over 62k.

30year term.

Planned to rough outthe mortgage, and hopefully earn a bit more cash, and pay off some of the mortgage in the next 3 years.

(Going interest only, and hopefully paying up to 10% per year on the mortgage).

Edited by Dr KT on Friday 28th November 16:40

[briSk]

Legend83 said:

briSk said:

i hope you've come to an arrangement with the vendor over the stamp duty seeing as you're paying £260k...

(£7.2k stamp vs. 2.5k if you'd paid £250K)

Yeah, already got that agreed - they are paying the difference.

Seen a 2 year fixed rate at 6.09% from Britannia which looks the best, but still works out at £1,416 a month which feels a bit on the heavy side.

We are both in decent jobs (primary teacher/accountant) but it is easy to feel nervous in the current climate.

ah an accountant - of course you were aware.. still makes sense to warn /remind people!

remember with Britannia you do get a *little* bit back as a 'reward'.

[SeeFive]

Landlord said:

briSk said:

i hope you've come to an arrangement with the vendor over the stamp duty seeing as you're paying £260k...

(£7.2k stamp vs. 2.5k if you'd paid £250K)

My first house was £260k and, as it was a sellers market, I ended up paying all of the stamp. It stuck in my throat for a good while afterwards, I tell you.

I bought a house for £250k in 2000, and bought the electronic garage door openers, 2 sheds, fort knox alarm, every blade of grass and exotic plant / tree etc separately for 10k cash. Yes, 3% SD over 250k is not a good thing.

[briSk]

Dr KT said:

Hi,

(Going interest only,

don't do this. please don't do this.

Dr KT said:

and hopefully paying up to 10% per year on the mortgage).

i don't get what you mean? you mean you're going to save up money to pay off the mortgage?

[scotal]

Dr KT said:

Hi,

First time buyers yes.

Married- combined inc must be over 62k.

30year term.

Planned to rough outthe mortgage, and hopefully earn a bit more cash, and pay off some of the mortgage in the next 3 years.

(Going interest only, and hopefully paying up to 10% per year on the mortgage).

Edited by Dr KT on Friday 28th November 16:40

Is it called a first start loan, got a guarantor onthe back of it (parent usually)

[briSk]

scotal said:

Dr KT said:

(Going interest only, and hopefully paying up to 10% per year on the mortgage).

Is it called a first start loan, got a guarantor onthe back of it (parent usually)

i that case - fill yer boots!

[Dr KT]

Larger payment, higher chance of default.

I have the cash to pay 10% deposit, and get a lower rate.

This would put both myself and my wife on the edge of comfort.

Going for a 5% deposit, keeping the other sum of cash in a decent saving account.

Then, by paying interest only, our monthly repayments are lower. Obviously we are not repaying the mortgage- however you are allowed to pay up to 10% per year into the mortgage. Which we aim to do.

Result- lower repayments, lower risk, but higher mortgage amount and slightly high rate.

Works for us.

[briSk]

Dr KT said:

Larger payment, higher chance of default.

I have the cash to pay 10% deposit, and get a lower rate.

This would put both myself and my wife on the edge of comfort.

Going for a 5% deposit, keeping the other sum of cash in a decent saving account.

Then, by paying interest only, our monthly repayments are lower. Obviously we are not repaying the mortgage- however you are allowed to pay up to 10% per year into the mortgage. Which we aim to do.

Result- lower repayments, lower risk, but higher mortgage amount and slightly high rate.

Works for us.

so as i thought.

well that's something.

just make sure you stick to paying off the 10%.

I really am the Farm Stores/Lidl/Value version of Tonker aren't I..?

[Dr KT]

briSk said:

scotal said:

Dr KT said:

(Going interest only, and hopefully paying up to 10% per year on the mortgage).

Is it called a first start loan, got a guarantor onthe back of it (parent usually)

i that case - fill yer boots!

True. However, the guarntor is ONLY needed if your combined income is below 62k. If you fit into this criteria, you will not need one- so we are ok for now.

Just make sure you dont waste money buying a flash car and actually pay into your mortgage.

If you get negative equity you will not be able to re-mortgage if needed, and you/we will be stuck at the high rate of 6.3%.

We aim to get off this as soon as we can, but carry on interest only.

Drop me a PM if you want my Indepdant Fincial Advisor, he is based in Wansted- London.

Edited by Dr KT on Friday 28th November 16:57

[mackie1]

I'm so glad we went for a tracker when we did. I only regret not taking it out over a longer period. Currently paying 3.63%. I wonder what Nationwide's SVR will be in 14 months... Or if we'll have any equity at all

[smack]

scotal said:

ETA the ecology building society will do a 6.45, but they insist you meet their green criteria.

Green criteria? - Eating lentals and not showering enough?

[scotal]

Dr KT said:

[True. However, the guarntor is ONLY needed if your combined income is below 62k. If you fit into this criteria, you will not need one- so we are ok for now.

Intersting that, Bristol and West (part of BOI) insist on the guarantor's signature irrespective of income.