FTB 95% mortgage interest rates

[peterh2]

I'm just after an idea of what sort of interest rate to expect on a 95% mortgage (I appreciate it's not going to be brilliant)!

This would be on a property that's on the market for £180k (detached 10 year old house) in the north east (I'd expect to get it for £170 ish).

This would be a join application but we're not married.

I'm on 33.5k (software developer aged 30) and she's on £27.5k (teacher aged 28).

We've both got student loans. She's got no other loans. I've got a personal loan (which was used for a car purchase) with £7.5k outstanding. This is being repaid at £300 per month over 48 months. There's about 32 months remaining.

Are the interest rates on these going to get significantly better next year when the help to buy scheme gets up and running? Would we be better to wait until then?

Thanks!

[Sarnie]

The 95% rates currently start at circa 5.69% but most are at 5.99% or just above. With regards to product interest rate movements in the future, who knows. They have been at the rates they are know for at least 18 months.....

[Sarnie]

Your credit will need to be squeeky clean also

[peterh2]

Thanks.

Bit higher than I was hoping as the LTV seems pretty sensible

We've both got perfect credit history.

[Sarnie]

peterh2 said:

Thanks.

Bit higher than I was hoping as the LTV seems pretty sensible

We've both got perfect credit history.

This is the highest risk category currently available and is reflected in the rates offered. I placed a recent 95% case where the applicant would need another 12 months to save another 5% deposit, whilst also having to waste £1k a month in rent whilst doing so. It made more sense for him to get on the higher rate now, not pay the £12k in rent but overpay it into his own mortgage. This more than negated the relatively high rate in the short term and he will be on track for an 80% product next time he remortgages

You may think the rates are high but it was only a few years ago when people with circa 75% LTV's were falling over themselves to get rates at around 5.5% and 'high' LTV product were into the 7-8% categories

[macca]

Sub 4.5% fixed for 2 or 3 years at 95% LTV
Closer to 4% at 90% LTV
Subject to status

[Sarnie]

macca said:

Sub 4.5% fixed for 2 or 3 years at 95% LTV
Closer to 4% at 90% LTV
Subject to status

Where?

[macca]

Sorry, 95% is government incentivised new build scheme. OP looking at 10 year old property.
I'll get me coat

[Sarnie]

macca said:

Sorry, 95% is government incentivised new build scheme. OP looking at 10 year old property.
I'll get me coat

I thought I was missing a trick!!

[oyster]

peterh2 said:

I'm just after an idea of what sort of interest rate to expect on a 95% mortgage (I appreciate it's not going to be brilliant)!

This would be on a property that's on the market for £180k (detached 10 year old house) in the north east (I'd expect to get it for £170 ish).

This would be a join application but we're not married.

I'm on 33.5k (software developer aged 30) and she's on £27.5k (teacher aged 28).

We've both got student loans. She's got no other loans. I've got a personal loan (which was used for a car purchase) with £7.5k outstanding. This is being repaid at £300 per month over 48 months. There's about 32 months remaining.

Are the interest rates on these going to get significantly better next year when the help to buy scheme gets up and running? Would we be better to wait until then?

Thanks!

Sounds like you'd be better to wait full stop.
You're taking home nearly £4k a month between you. Even with that loan and rent and other costs you should be abale to save a 20-25% deposit in 18 months to 2 years.

And as you say you're in the NE - prices won't be moving in that time either.