help with mortgages please... re: 95% mortgages?
no smart **** answers please.... I wondered if you knew of any lenders offering the 95% mortgage? I need help please . Thanks
I am in the UK. Thanks
- 1 decade agoBest Answer
They ALL have 95% mortgages, but they have now become EXTREMELY difficult to get.
What do you think caused this credit meltdown?? That's right... people who could NOT afford a house to begin with getting into interest only loans, ARM's, or 95% or even 100% sub-prime loans.
If you cannot meet the requirements of a standard 30yr or 15 yr fixed mortgage, you have NO business getting into something over your head ESPECIALLY in THIS market and THESE times.
This may seem harsh, but its a walk in La-La Land compared to the bankruptcy you are thinking about setting yourself up for....Source(s): Been there..done that..have a closet full of t-shirts to prove it..
- ThereseLv 44 years ago
By definition, as you already have a mortgage you would be remortgaging. Even if you were buying a new house you still would not be a first time buyer as you already have a mortgage. A 95% mortgage means that when you buy the house you need to borrow 95% if its value. This is called the Loan to Value or LTV. A few years ago you could buy initially with a 95% mortgage, then after a couple of years prices would have risen so much that if you remortgaged you might only have needed to borrow 70% of its new value - even though the actual amount borrowed was about the same. When you take out a mortgage the lender will (certainly now) never lend you the full amount you need. They will expect you to provide some of the funds yourself. This is commonly referred to as a deposit, but it is not a deposit in the sense that you need to put money down up front. If you are remortgaging the "deposit" is the equity in your home. If you owe £95,000 then you will get a new mortgage for £95,000 and use it to pay off the first loan. In your case a fixed rate of 6.45% is quite high. When that rate ends you will switch to your lender's standard variable rate (SVR) which is likely to be about 4%. Bank of England rates are unlikely to change until at least the second half of next year, so you probably have some time to think about what to do. At the moment most lenders will not lend more than about 75% or 80% of a house's value. Some will lend more, but you will need a good credit rating, and the interest rate is likely to be higher. So if you need 95% of your house value you are highly unlikely to be able to get a deal at all. If you can find something it is likely to be a high interest rate. In practice you are almost certainly going to be better of not switching and sticking to your lender's SVR. You run the risk that house prices might fall slightly in the near future, so you may move into negative equity. But this is only a problem if you need to sell. If you are happy to stay where you are you will be OK. In a couple of years you will have paid off a bit more of your debt, prices may have risen, so your LTV may be nearer the 80% needed to get a decent remortgage. Obviously, this is all generic advice. You will need to speak to a financial or mortgage advisor to get something more specific to you.
- Moneyfacts.co.ukLv 41 decade ago
There are three lenders offering three 95% LTV mortgages. They are:
Although they are all charging around 7% interest - not very competitive. If you are a first time buyer, you are probably better off savings up a bigger deposit.
If you have an existing deal and need a new one, then you are probably better off moving onto your lenders standard variable rate. Most vary between 3.5% and 5.00%.
Some lenders offer standard variable rates to new customers, but these not many.
- Spec TacLv 61 decade ago
You can talk to most mortgage lenders, especially through a community bank or something, and they all have access to the same FHA/ other federal and state lending programs. These are the organizations thorugh which most of the 95% programs are offered.
Also, find out if your state has a lending program/agency, and read the details for yourself so you know ahead of time when talking to a lender.
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- Eddy TLv 71 decade ago
The government has just introduced this insurance scheme for banks to give 95%mortgages to new and first time buyers. Check with your lender whether such facility are in force now.
- 1 decade ago
Sorry the answer is not at the moment. Even with a guarantor you will need minimum10% deposit.
Lets hope the Government come up with some meaningful PRACTICAL help for first time buyers.
By the way as far as I am aware Northern Bank will only lend in Northern IrelandSource(s): Independent mortgage broker
- DazcouzLv 41 decade ago
Couldn't you save up until you can get a 90% mortgage
- 1 decade ago
contrary to what many people have said here 95% and even 100% mortgages still ARE available. 1 example is Northern Bank who offer 100% mortgages even to new buyers.
10 points please :)Source(s): Mortgage Advisor
- Anonymous1 decade ago
The best bet for a 95% loan is an FHA 30 year fixed. The credit requirements are a lot lower and it's generally easier to qualify for.
Let me know if you need more info.Source(s): I'm a mortgage banker/broker
- Robert MLv 71 decade ago
Yes there are, investigate at bankrate.com
depends on property location, total amount financed, and your credit score, you did not provide this information.