Remortgage

Remortgage

Are there any 95% Loan-to-value Mortgages available in Northern Ireland?

Buy-to-Let, First Time Buyer, Help To Buy, Homebuyer, Mortgages, Remortgage, Self Build
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Are there any 95% Loan-to-value Mortgages available in Northern Ireland?

It is hard to save for a deposit in today’s economy regardless whether you are a First Time Buyer or a Home mover.  It is difficult if you own a property with little or no equity and want to get a remortgage while the rates are low.  Almost on a daily basis I get asked if there are there any 95% LTV mortgages available in Northern Ireland.

I thought this post might help even more people find the answer.

95% LTV Mortgages Northern Ireland (NI)

As a Financial Planner & Mortgage Adviser I always like to point out the risks with mortgages with such low deposits.  The Northern Ireland market is at best in the early stages of an economic recovery but what if NI house prices drop again? 95% loan-to-value mortgages could very quickly become negative equity mortgages.  It’s important to consider if you afford a bigger deposit?

So assuming you are comfortable with the risk; can you get a 95% loan-to-value Mortgage in Northern Ireland (NI) in the current market? The answers are shown in the table below depending on the type of mortgage you are looking for; Buy to Let, First Time Buyer, Help to Buy, Let to Buy, Remortgage, Self-Build or a Homebuyer mortgage.

95% LTV Mortgages

Mortgage Type

95% LTV Mortgage

Buy to Let

No

First Time Buyer

Yes

Help to Buy

Yes

Homebuyer

Yes

Let to Buy

No

Remortgage

No

Self Build

No

As you can see 95% loan-to-value mortgages are few and far between and you need a good credit rating to get one.

Rates, Fees and Affordability

As with all mortgages the rates, fees and affordability calculations will vary from lender to lender.  For a 95% LTV mortgage in the current market, expect the fine tooth comb approach.

Good news for First Time Buyers, Help to Buy and Homebuyers with low deposits across Northern Ireland. Alas everyone else will have to save a little more or pay down their existing mortgages

From Acorns Financial Planning Ltd are based in Tyrone, Mid Ulster. We provide a comprehensive Financial Planning and Mortgage Advice service to clients across Northern Ireland and the UK.

Mortgage Advice

If you have any questions or if you need help getting a mortgage for a 95% LTV mortgage in Northern Ireland or further afield call 02895 815000, email [email protected] or leave a comment below.

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What is the Help to Buy Scheme and how does it work?

First Time Buyer, Help To Buy, Homebuyer, Mortgages, Remortgage
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What is the Help to Buy Scheme and how does it work?

The Help to Buy scheme helps homebuyers and First Time Buyers who don’t have a lot of savings to buy a home.

The Help to Buy scheme is available to those who have a 5% deposit to put towards the purchase of a property.

Help To Buy Mortgage

How does the Help to Buy scheme work?

As with any mortgage application you need a good credit rating and to buy a home through the Help to Buy scheme you will need to have a 5% deposit.

Once you have found a suitable property you will then need to find a suitable Help to Buy mortgage from a willing Lender.  The Lender then applies to the government for a guarantee on your loan of up to 20% of the value of your property, which means if you default on your mortgage and the property is repossessed the Lender will be liable for this portion of the loan.

Who are Help to Buy schemes available to?

Help to Buy mortgage schemes are available to first time buyers, homeowners moving home and potentially those who need to remortgage.

Unlike other schemes the Help to Buy scheme will accept both new builds and second hand properties.  The property must be valued less than £600,000 (£400,000 in Scotland). Second homes and Buy to Lets are excluded from the scheme.

How do I apply for a Help to Buy mortgage?

A good Mortgage Adviser will help you source a suitable mortgage from a lender that operates in the Help to Buy scheme.

Remember there will be additional costs above and beyond the required 5% deposit, such as

  • Mortgage application & booking fees
  • Survey costs
  • Solicitor’s fees
  • Mortgage Advice fees
  • Buildings and contents insurance and life assurance

Of course the lender will have to carry out the usual checks on prospective borrowers such as assessing their credit report, assessing affordability including the ability to cover repayments if the interest rate increases.

Images courtesy of kennymatic on Flickr

THIS PAGE DOES NOT CONSTITUTE ADVICE AND SHOULD NOT BE TAKEN AS A RECOMMENDATION TO PURCHASE OR INVEST IN ANY OF THE PRODUCTS/SERVICES MENTIONED 

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE