Is anyone lending 95% mortgages?

[Jimbob4884 10]

Abbey are offering a 95% mortgage but it looks to be a poor deal

[nestbuilder 10]

Will look at Abbey. Do you go to Abbey directly?

[Jimbob4884 10]

I guess so. Check the link:

 

http://www.abbey.com/csgs/Satellite?appID=abbey.internet.Abbeycom&c=Page&canal=CABBEYCOM&cid=1210610682091&empr=Abbeycom&leng=en_GB&pagename=Abbeycom/Page/WC_ACOM_TemplateG

 

Its the bottom one of the 5 year fixed rate mortgages. There is a high interest rate on this deal however and the booking fee is £2500 which is alot! In essence, because of this high fee, it doesn't really make it a 95% mortgage. I too am looking around for a mortgage at the moment as a first time buyer, but I am lucky enough to have just secures a 10% deposit on the price range I am looking at

[nestbuilder 10]

Booking fee? Thats a bit of a rip isnt it? You might as well try and get the other 5%, which is what we might have to do.

[Jimbob4884 10]

Exactly, I suppose this high fee is why they can offer a '95%' mortgage though when other on the market are not doing so. But your right, you may as well and try and save the other 5% as in the long run it will be a much better option. You will be offered lower rates of interest and wont have to pay a fee as high as the £2500 this one demands! My girlfriends mum works for Abbey and she was advised by a colleague that in the long run this 95% deal is a bad option.

[Danny_Boy 10]

Exactly, I suppose this high fee is why they can offer a '95%' mortgage though when other on the market are not doing so. But your right, you may as well and try and save the other 5% as in the long run it will be a much better option. You will be offered lower rates of interest and wont have to pay a fee as high as the £2500 this one demands! My girlfriends mum works for Abbey and she was advised by a colleague that in the long run this 95% deal is a bad option.

 

The £2500 also has to be paid upfront, so if your buying a £100k house your better off just saving another £2500 and having a 10% deposit.

[nestbuilder 10]

Well, I havent found the dream house this weekend, but the search continues. I have found one that is OK - ish and have another to see next week.