90% mortgages

[ReturnofSaturn]

We would be first time buyers and just starting to think recently about home buying.

Are there any lenders currently still offering 90% mortgages or are those days long gone?

We are in a lower house price area (North West) but can still only scrape a 10% deposit.
We haven't been able to save much at all these last couple of years despite being frugal people.
No possible help from bank of mum and dad's either.

Would we be wasting our time? We don't know what to do as we are in our 30's so could really do with getting on the property ladder soon.

Thanks in advance for any advice.

@CuppaZa

proof of 3 months mortgage repayments in bank account

That’s harsh, are they expecting this at the same time as she is paying rent elsewhere?

I don’t know where in the NW but if you are in the right area, try the Cumberland building society. I got a great deal with them because they assess each case on individual affordability rather than a standard x+y=z type calculator.
They are lovely to deal with too, but only local.

I don't reckon 95% one will be back for a long while Ajoor. But you never know.

We bought in London about 3 years ago with a 10% deposit & we were first time buyers. There were no issues and I hope the same goes for you now.

We had about 50k saved, I have no clue how people have anything more than a 10% deposit in their 20s or even 30s when they want us to get on the ladder in London. The help to buy scheme wasn't an option as I didn't want to buy a new built flat, I really wanted a house. Came in really handy with our DS now.

Crazy!

I second London and Country - they're a whole-market broker, don't cost anything and specialise in finding mortgages for people with slightly unusual circumstances

Bank of Ireland are still offering 90% mortgages.

@Ajoor Yep! She is self employed though so I don’t know if that’s why

We are the same. Saving but the most we will ever be able to save is 10% due to high rent. Our rent is double what a mortgage would be and I am 40 next year. Starting to give up hope of being able to buy at this rate.

@BarbedBloom

We are the same. Saving but the most we will ever be able to save is 10% due to high rent. Our rent is double what a mortgage would be and I am 40 next year. Starting to give up hope of being able to buy at this rate.

Yes, similar here. Our rent, which we afford easily, is 1.5 that of our neighbour's mortgage. The houses are identical. It's infuriating. DH is 41 and I am 38. Our jobs are rock solid throughout this pandemic, which we are grateful for, but it's a shame that we are "tarred with the same brush" in terms of affordability, when there is no chance that we will be out of work.

Prompted by this thread I had a good look online last night and see that the most LTV available at the moment is 85%. Well we are never, ever going to be able to buy a house then. No bank of mum and dad. we have been putting off TTC for years as I wanted to be in our own house and I know that children reduce the amount of mortgage you are given. I can't believe that now, due to this pandemic, no house = no children. Wow. Thank goodness I saw this thread. I would have had no idea.

I really sympathise Ajoor. I had a little cry in frustration last night as by the time we'd be able to save a big enough deposit we'll probably be too bloody old for getting a first mortgage!

Get in touch with L&C - free for you to use as they get commission from the lender if the mortgage goes through. We used them and they were absolutely brilliant - we didn't have a standard set of circumstances and they got us a good deal. Plus rolled up their sleeves and helped when we had a last minute problem with our purchase. Really good service and they will have access to mortgage products that aren't on the high street - they'll also know which lenders to go to for the best LTV ratio.

L&C are really good. They secured a 95% mortgage for us in 2018 (the house needed loads of work, so we had to use our savings for the renovation prior to moving in.) It's worth a shot. They will tell you honestly if they can't help you

Jumping in a little, but what are the bands for mortgage rates, I assume you pay more at 90% LTV, where do the other interest rate drops happen?

HSBC are still doing 90% do see a broker though!

I'm not sure about the current climate, but we got a 95% mortgage a year ago, so I can't see why 90% aren't available in theory. Best option is to have a look online, and attempt a mortgage in principle or a calculator. The worst you can get is a no, and I believe an MIP isn't a credit check.

Try this:

www.uswitch.com/mortgages/90-ltv/

Good luck! Exciting times

I'm currently going through a mortgage application (in NI so lenders are slightly different criteria wise) but there were some 90% LTV products whereas a few months ago in the middle of lockdown there were none at all, I used a local mortgage broker who don't charge a fee and were a great help!

So I echo others recommending a broker.

Good luck!

I work in the banking sector. I don't think 95% mortgages will be back for a long time unfortunately. There is too much uncertainty with job security and the housing market it is too risky for banks. I'm hoping 90% mortgages will be back by the end of the year when things start to level out

I work for a bank currently doing 90% mortgages and its one of the big five. Our criteria is fairly tight at that LTV its 4.49 times your salary and it has to be affotdable so less debt the better.

Have a look at Yorkshire Building Society. The Guardian ran an article on 20 June saying Yorkshire were offering 90% mortgages. I'd post a link but I have no idea how to. If you Google Guardian 90% mortgage you should find the item or go straight to Yorkshire website.

@nosotro actually I thought it was the opposite for London buyers. i thought that as the prices are so high, we need a big deposit by default unless you have high income (and high income makes saving for the big deposit easier anyway). I bought my 2 bed london flat last year for 400K and had 15% deposit- was still mortgaged to the hilt (slightly more than 4.5X income).

London first time buyers on average have at least 100K deposit and that is a fairly large deposit as the average first time buyer property in London is 480K. I have no idea where all that money is from- bank of mum and dad? Conversely up north, first time buyers seem to come from a wide range of backgrounds,and so I understand that this might mean smaller deposits in some cases.

@ReturnofSaturn I used charles cameron as a broker. I was a FTB last year, and had a more complicated situation as I didn't have settled status yet (DH is british). But they were very helpful.