Low deposit mortgage deals harder to find

[Mortgages]

Although the availability of houses at lower prices should in theory benefit first-time buyers (FTBs), the virtual disappearance of low-deposit mortgages is still making it difficult for FTBs to get on to the housing ladder.Moneyfacts has produced figures that show that currently there are only 35 deals available to borrowers with a 5% deposit, and [...]

More: Low deposit mortgage deals harder to find

[Scott Butcher]

There are still options available via some of the FTB schemes. You have to be happy with shared equity / ownership though.

[Paul_MN]

Its a shame the government are not putting pressure on the banks to keep their low deposit mortgages open. As more 5 and 10% deposit mortgages disappear, even less FTB can get on the market and we all know the housing market and therefore whole economy needs FTBs!

[Mailmannz]

Well the thing is this. 5% mortgages have gone. Cant be too long before 10% mortgages are gone and who knows, maybe in 6 months time you might be struggling for a 25% mortgage.

So maybe now is a good time to buy because if you wait too long, you wont be able to get a mortgage for love or money?

Mailman

[Paul_MN]

Originally Posted by Mailmannz

Well the thing is this. 5% mortgages have gone. Cant be too long before 10% mortgages are gone and who knows, maybe in 6 months time you might be struggling for a 25% mortgage.

So maybe now is a good time to buy because if you wait too long, you wont be able to get a mortgage for love or money?

Mailman

True but I think the government will soon step in and do something to help ensure lower deposit mortgages stick around more. They have to if they want to bring first time buyers back in to the market which is the only way we will get out of this mess.

That said, personally I would buy now rather than wait, yes prices may fall further yet but negative equity only matters if you are selling. If you are buying the property as your own home or as a buy-to-let investment then negative equity does not matter until you decide to sell the property again.

[gdwebs]

The mortgages in other European countries are not as strong as ours, and their property prices dont compare to ours.

They are so much lower because people can't leverage money - maybe our markets going the same way

[gdwebs]

Originally Posted by Paul_MN

True but I think the government will soon step in and do something to help ensure lower deposit mortgages stick around more. They have to if they want to bring first time buyers back in to the market which is the only way we will get out of this mess.

That said, personally I would buy now rather than wait, yes prices may fall further yet but negative equity only matters if you are selling. If you are buying the property as your own home or as a buy-to-let investment then negative equity does not matter until you decide to sell the property again.

Definately, First time buyers are hardly likely to be able to get on the market with deposits up to 30% in some places.