Halifax mortgages at 85%

[KnitOnePurl1]

Anyone any thoughts/predictions on when they'll offer mortgages with a 10% deposit again?

When there is a bit more confidence in the housing market. The deposit acts as a buffer to protect the banks investment against drops. Banks will not want to be lending 90% mortgages if house rises could drop 20%. Reason being if they need to repossess the house due to a bad debt they will not get their money back when they sell the house on.

Being a bit more specific with an answer. In the short term I think its more likely that 85% mortgages with withdrawn, rather than 90% mortgages get reinstated.

Have you looked at other lenders or spoken to mortgage broker like 'London & Country'? I thought the Post Office (Bank of Ireland) were offering 90% mortgages.

Thanks for the replies! Unfortunately, we're stuck with Halifax at the moment thanks to the fixed term we have, or we'd end up with fees to pay. Basically, the house we're in now we bought when we only had one small child and I was part-time - we've got two now and are just really struggling for space. I'm now working full-time in a permanent role, and DH's salary has increased since we bought this place so affordability isn't a problem - it's just that we just haven't managed to save to add to the deposit as much as we'd like (childcare costs over the last few years being the main reason, at one point both kids were in nursery) so we feel a bit stuck.

Im confused as to why you are stuck with Halifax. If you need to remortgage doesnt that mean the fixed term is coming to an end?

We'd have early repayment charges if we moved to another lender. The mortgage terms were renegotiated two years ago I think, and the penalties apply until next year.

I'd look at the difference between what halifax offer and getting a mortgage broker! It might actually be better to pay the halifax fees and get out! We were amazed at the difference in offers between santander and a mortgage broker.

We spoke to a halifax account manager (I'm a financial adviser) and they said they thought we wouldn't see 90% mortgages back for months have you looked at new build houses and using the help to buy scheme? Halifax are doing those now

Have you checked your mortgage is portable and any assessment or other fees for doing so?

You could be cheaper with another provider anyway if you get a better rate. Talk to a broker.

Thanks Elouera - we did actually speak to a broker briefly at the end of last year, and I think the fees were meant to come down at the end of July this year - so I'll check that, and see if it'll be better to cut our losses.

Perhaps I'm being impatient, lockdown has definitely exacerbated the need for more space - this house is convenient in lots of ways, just really tiny for two adults and two active growing kids. I've been trying to spend any spare (ha!) time doing bits of decorating/gardening to improve it for when we sell. There's a house down the street that's very similar for this that's currently for sale, so if that goes we'll be able to get some idea of what we can expect.

If its affordable could you get a small loan for "home improvements" to cover the exits fees?

OP we are in an almost identical situation from what you describe. We've decided to buy a new build, it means we get a 75% LTV mortgage which was very easy to obtain (got an offer in days) and we were able to port our mortgage into it so we didn't have to pay the redemption fee. We also got lots of shiny incentives like stamp duty paid. We've been able to double the size of our house, but mortgage is only going up £100 a month (we will over pay to hopefully mortgage out help to buy in 5 years).

Thanks to all again, we've been checking out the help to buy scheme - was vaguely aware of it but assumed it was for first time buyers. There's LOADS of new properties going up round where we are now, we're not even really fussy about where it is as long as it's no more than 10 mins away from DC's school/nursery.

I was talking to my DM about all this the other day, she was saying back in the 70s she got a 100% mortgage on a house that cost £5000 after a brief chat with the building society manager - she's only moved once since then, in the 80s, and said it was still so easy. She's genuinely baffled at moving nowadays with credit checks and strict deposits and having your bank statements combed through!

Help to buy is open to second time+ buyers until end of March 2021 only just to warn you.

Yes there even used to be 105% mortgages so you had a bit extra to do the house up!!