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    Mortgage advice needed

    Hi all,

    I have recently purchased my first house. I was getting a mortgage at HSBC based on a 10% deposit at a rate of 4.99%. HSBC have come back to me and said that as im a first time buyer the system has said I need a minimum of 20% deposit. Does anyone know of anywhere that I can apply for a competitive mortgage based on a 10-15% deposit?

    Thanks

    19 Comments

    See a "whole of market" financial advisor for impartial advice.

    Use this website to find one by you. They either charge you a fee or make their money from the lender (bank, building society).

    unbiased.co.uk/

    try here
    mortgages.co.uk/mor…tml
    and click on first time buyers

    i got mine through progressive very recently..................

    I got a 90% mortgage through Post Office a few months ago - not sure if they are still offering it but it was the best deal on the market by quite a way

    If you've bought the house on the strength of their mortgage offer and been honest in the application form that was, I assume, originally approved, you have every right to complain about how they've handled it.

    Get your lawyer to contact them and argue, that's what you pay them for.

    Banned

    dude how do you not have more than 10%?

    i'm aiming for about 40% downpayment.

    good luck btw... try nationwide

    bykergrove;5273180

    dude how do you not have more than 10%? i'm aiming for about 40% … dude how do you not have more than 10%? i'm aiming for about 40% downpayment.good luck btw... try nationwide



    It is getting ever more difficult for YOUNG first time buyers to raise any more capital than 10% - in some cases share ownership and developer deals have been seen to be more popular.

    I'm afraid also an agreement in principle (which I assumed you received) is not legally binding. They can change the terms up until the point of contract signature :x

    Banned

    TheMafia;5273210

    It is getting ever more difficult for YOUNG first time buyers to raise … It is getting ever more difficult for YOUNG first time buyers to raise any more capital than 10% - in some cases share ownership and developer deals have been seen to be more popular.I'm afraid also an agreement in principle (which I assumed you received) is not legally binding. They can change the terms up until the point of contract signature :x



    I'm 23 dude. and I live in london. just been saving heaps.


    good luck OP let us know how you get on.

    Original Poster

    bykergrove;5273180

    dude how do you not have more than 10%? i'm aiming for about 40% … dude how do you not have more than 10%? i'm aiming for about 40% downpayment.good luck btw... try nationwide



    The house ive made the offer on is £159,950 so 10% = £16,000 and 20% = 32,000 which is alot to raise for a deposit

    Original Poster

    thanks everyone for your advice!! I'm going down every avenue and i'll keep you all posted on how i get on!!

    Banned

    pingusbrother;5273247

    The house ive made the offer on is £159,950 so 10% = £16,000 and 20% = 3 … The house ive made the offer on is £159,950 so 10% = £16,000 and 20% = 32,000 which is alot to raise for a deposit



    cool, what area is it in?

    also are you doing a buy to let? or a residential mortgage? if you get a residential mortgage it is cheaper.

    I'm looking for a 2bed in london or a 3-4 bed in birmingham. for about £170,000 to £220,000

    I was approved a mortgage of £175,000 at 3.14% with nationwide. sounds good so try there

    bykergrove;5273180

    dude how do you not have more than 10%? i'm aiming for about 40% … dude how do you not have more than 10%? i'm aiming for about 40% downpayment.good luck btw... try nationwide



    Sensible,sadly everyone can't get up that much and lucky to lay down £5-10K for deposit.

    Original Poster

    moob;5273160

    If you've bought the house on the strength of their mortgage offer and … If you've bought the house on the strength of their mortgage offer and been honest in the application form that was, I assume, originally approved, you have every right to complain about how they've handled it.Get your lawyer to contact them and argue, that's what you pay them for.



    Yeah i'll get my solicitor onto them as the banks are suppose to start lending to help the economy and they are getting alot of funding yet still being very cautious since they got burnt!! So it's very frustrating!! Hopefully it will all come good in the end:)

    Original Poster

    bykergrove;5273285

    cool, what area is it in? also are you doing a buy to let? or a … cool, what area is it in? also are you doing a buy to let? or a residential mortgage? if you get a residential mortgage it is cheaper.I'm looking for a 2bed in london or a 3-4 bed in birmingham. for about £170,000 to £220,000I was approved a mortgage of £175,000 at 3.14% with nationwide. sounds good so try there



    I'm based in Dorset so prices are quite high as im near the sea, however house prices have fallen making it realistic that i can buy a property but i just don't want to pay through the nose on the mortgage. I'll look into Nationwide as i couldnt believe it as i bank with HSBC and the were very upbeat about the mortgage etc

    Mum2Connor&Cerys;5273298

    Sensible,sadly everyone can't get up that much and lucky to lay down … Sensible,sadly everyone can't get up that much and lucky to lay down £5-10K for deposit.



    Yeah its alot of money for some people

    Don't forget the Post Office - they had some very competitive rates not so long ago!

    Banned

    aren you not better off going to see a financial advisor, they will know who will give you what without houding the streets yourself

    TheMafia;5273210

    It is getting ever more difficult for YOUNG first time buyers to raise … It is getting ever more difficult for YOUNG first time buyers to raise any more capital than 10% - in some cases share ownership and developer deals have been seen to be more popular.I'm afraid also an agreement in principle (which I assumed you received) is not legally binding. They can change the terms up until the point of contract signature :x



    Perhaps not, but I had a similar problem with my lender when it came time to exchange contracts. Went to see my lawyer and he gave them hell down the phone - loan approved!:thumbsup:

    There always the issue that whoever will not lend on the property if they don't think it's worth what you offered. There a lot on MSE ( Money Saving Expert ) a whole forum section on house buying,selling and renting and I've seen a lot of rants about that too.

    Give your local Lloyds/TSB branch a try as they have just brought out a new 95% mortgage offering today. IFA advice can be good but you can be charged & the IFA may also claim a placement fee from the lender as well.
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