Will less than 15% deposit mortgages come back next year?

[BrieAndChilli]

Or if house prices drop as they are predicted to will they restrict LTV even more?
I’m just so fed up that when we finally get a 10% deposit together the goal posts move and you now need 15% combined with this stupid uptick in prices because of stamp duty (which I’m sure wasn’t the point!) meaning the deposit needs to be more. So 10% of a property 6 months ago is now about 6/% of the same property. If we leave it much longer we will not be able to get a long enough mortgage and we can’t save fast enough to keep up with the deposit that’s required as it keeps jumping up in huge chunks!

Looking at the unemployment figures as furlough is being wound down, my 2 cents - the shit will hit the fan.

Unless there’s another about turn on government support soon.

@ForensicAccountant do you have an opinion on how availability of mortgages will be affected? Will it mean less given and higher criteria than now or do you think the government will step in to try and keep house buying moving?

I am desperately hoping that 10% mortgages come back. There needs to be a total review of home ownership in this country, without even getting into the Covid thing.

I'm afraid that when house prices fall, higher LTV mortgages tend to become increasingly restricted. And those that are available are higher interest rates.

They may come back for a while, I think it depends on how badly the economy is doing when the covid situation steadies.

Just a case of holding on then really

10% deposit mortgages will not be back next year. The post lockdown boom in prices is already starting to slow. Keep saving and by the middle of next year a 15% deposit mortgage will probably be affordable for you.

We've opted for help to buy for this reason as you only need a 5% deposit. We didn't need HTB from a mortgage point of view as we have good salaries, we just haven't been able to build a big deposit so we are needing a high LTV mortgage, we should be (as much as you can predict in this climate) able to remortgage it out in 5 years when you start paying for it. We wanted a new build anyway so it didn't influence us that way, but obviously not much help if you don't want a new build!

Can’t see them coming back but house prices will start dropping at first time buyers being restricted will stall the market moving imo