10 percent deposit and convid-19 situation

[msbhatti]

i have saved 10 percent deposit to have a property (first time buyer) but now few banks has raised their deposit .. upto 40 percent for barclays after convid-19

I want to know is there other lender who offer deposit of 10 percent ?

anyone started buying process after convid-19 on 10 percent deposit ....?

My situation is very different because I started before covid lockdown etc.

I think that's standard atm. It might go back to accepting 10% after lockdown.

No idea what types of property you're looking for, but you might be eligible for the Help to Buy schemes as well - they're only for new builds atm though.

new properties are very expensive. thats why i was looking to buy without help to buy scheme on 10 percent deposit

Have you spoken to a broker? If not I would start there. They may be able to find something for you with a 10% deposit.

@Solina Hi Solina! I havent spoken to broker yet, i have completed savings in march and wanted to speak to broker but then this lock down and convid-19 comes up.

could you please recommend broker so that i can discuas my situation with him/her and see what they advise?

I would carry on saving for a year and see what happens due to Covid and Brexit.

15% at some high street banks. You're going to struggle for less than that at the moment.

We used a local company but you can search for some in your local area. Some wont charge at all and most will be happy to have a initial meeting for free and will only charge if you go with one of the mortgages they find you.

Keep saving, your deposit will go further in future.

according to zoopla there are 72 mortgage products with 90-95% loan(15May).
www.zoopla.co.uk/discover/property-news/coronavirus-mortgage-interest-rates-fall-to-historic-lows/?utm_source=content&utm_medium=email&utm_campaign=zoopla-20200516&utm_content=mainbody&utm_term=Find%20out%20more&utm_medium=email&responsys_campaign_id=zoopla.42811562&responsys_riid=70509822&responsys_launch_id=50420462

Up until 2 weeks ago Nationwide were only offering 25%, they have now dropped this to15% so might be worth keeping an eye out.

@boredinthehouse12

thanks for that. if nationwide has reduced to 15 percent. i hope other lenders will reduce soon too. thats a hope

in below think barclays and halifax are now offering at 40 percent

www.google.co.uk/amp/s/www.thisismoney.co.uk/money/mortgageshome/article-8155585/amp/Halifax-Barclays-scrap-new-mortgages-40-deposit.html

@mumsy27 thanks for the link you have referred. look like there are still few lenders. thanks for sharing.

@deadhousebounce @delilahbucket yes still i am saving for the future.

@Solina i have checked some local brokers and will contact them soon.

@susan867 thanks for the great advise

We used the brokers London and Country and lots of others on here have too. They are fee free and find lots of options. They get their fee from the mortgage company. I would highly recommend them.

Be aware that with 10% deposit, if you buy at the top of the market, if prices drop by more than 10% you will have negative equity.

The uncertain, and highly likely plummeting housing market is a reason why lenders are more cautious - and rightly so, although not fitting with your plans.

You need to take a broader view of it all, rather than just the fact you really want to buy now and your deposit was adequate a few months ago. If you look at falling prices, risks of negative equity, economic uncertainty, you might well decide to wait a few months and keep saving. Not only will prices be lower, but that, plus your extra savings might mean the equity you could have might be much much larger and you can afford something better.

I know waiting isn't probably what you want, but it is the wisest move right now to benefit rather than lose from a falling market.

@Badgertastic thanks for the advise and recommending mortgae advisor.

@wombatchocolate thanks for logical reply. i do agree i should wait for some time as this is risky time to buy a property ... actually i am on renting in last 8 to 9 years . and now sick of renting and want to have a house as soon as possible.

Happy to wait another 5 to 6 months for good time. by that time i hope i will have some more savings.