Kyle T
Premium Member
Registered: 11th Sep 04
Location: Selby, North Yorkshire
User status: Offline
|
Opened the account today, they took all our details and said they would lend us up to 240,000.
We've done some personal budgeting and the most we'd want to borrow on current rates is 218,500, so gives us a purchase price budget of 230,000 and deposit requirement of 11,500. We've already got ~£14k IF my current house sells for it's valuation price, so we've got a bit of space for fee's and stamp duty - but every month we're stuck here without being able to sell - we can add about £1k to that.
My current place is going on the market on Thursday this week, obviously being 6 months away from a mortgage promise isn't ideal - but even if we need to rent for a while to save up a bit more and/or wait for the 6month deadline, it's no major drama.
I've spoken to a couple of other 95% lenders in the past week and the Nationwide rates (as they are right now) are the most competitive for 95% LTV - so it may be worth waiting for.
Lotus Elise 111R
Impreza WRX STi
|
John
Member
Registered: 30th Jun 03
User status: Offline
|
What rate to they give you on the mortgage?
|
deano87
Member
Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
User status: Offline
|
Good to hear this Save to Buy thing actually works and half decent in terms of rates etc.
|
Kyle T
Premium Member
Registered: 11th Sep 04
Location: Selby, North Yorkshire
User status: Offline
|
They can't tell me what the rate will be in six months, but their "save to buy" rates are .9% more than an equivalent 90% LTV mortgage.
Currently that puts it at 5.7 I think, the other lenders I've spoken to about 95% LTV have been 5.9, 6 and 6.1 
There's no escaping I'm going to get bummed for three years, but luckily I'm due some cash in 2016 from other investments so I stand a decent chance of remortgaging at 80 or 85% LTV, so the pain will be temporary.
Lotus Elise 111R
Impreza WRX STi
|
Graham88
Member
Registered: 16th Apr 07
Location: South East Kent Drives: E46 M3
User status: Offline
|
Can you open it just to save or do you have to go with them for the mortgage? What are the rates like if so?
If you can save with them it seems like a win win situation
|
deano87
Member
Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
User status: Offline
|
Yes you can.
You have to wait 6 months from opening before you can apply for a mortgage. But 2 years from opening, it you don't apply, it will lapse and you won't get the 95% offer.
Savings rates aren't brilliant. They do an ISA version too.
|
Kyle T
Premium Member
Registered: 11th Sep 04
Location: Selby, North Yorkshire
User status: Offline
|
Yep the rates aren't amazing, but they're not bad either if you just use it for a saving account. It's a 3year expiration btw, not two.
If you've got £10k or more in the account on the day you close it (and hence start the mortgage) you get £1k cashback too. I'll have about £20k available to put in it but I'll still only put £50 p/month in so the rest of it can stay in a higher rate savings account - then on the day of closure (if I go through with it) I'll dump it all in the Nationwide account to score the cashback.
I asked her, and she said that's allowed 
Lotus Elise 111R
Impreza WRX STi
|
Graham88
Member
Registered: 16th Apr 07
Location: South East Kent Drives: E46 M3
User status: Offline
|
Ill have to see what rate I'm getting at the moment then compare :-)
|
deano87
Member
Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
User status: Offline
|
3 years. Nice 
|
Kyle T
Premium Member
Registered: 11th Sep 04
Location: Selby, North Yorkshire
User status: Offline
|
Seems a bit oldschool this account, got a little passport book thingy sent through - no online interaction, think I've got to phone in details or go in branch to make payments
Lotus Elise 111R
Impreza WRX STi
|
deano87
Member
Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
User status: Offline
|
quote:
Originally posted by Kyle T
Seems a bit oldschool this account, got a little passport book thingy sent through - no online interaction, think I've got to phone in details or go in branch to make payments
No, you can create an online account. I have one, just use your details in the book and they send you a letter with log in details.
I've also set up my account as a payee on Barclays so I can transfer directly in. They're faster paying too, is in within 5 minutes
|
Kyle T
Premium Member
Registered: 11th Sep 04
Location: Selby, North Yorkshire
User status: Offline
|
Ah I'll do the latter then, ta! 
Lotus Elise 111R
Impreza WRX STi
|
Toby
Premium Member
Registered: 29th Nov 05
User status: Offline
|
I wouldn't say 5.7% is being bummed. I paid 5.79% for 3 years as an FTB and that was on 84% LTV.
|
Kyle T
Premium Member
Registered: 11th Sep 04
Location: Selby, North Yorkshire
User status: Offline
|
When?
Lotus Elise 111R
Impreza WRX STi
|
Ian W
Member
Registered: 8th Nov 03
Location: Wirral, Merseyside
User status: Offline
|
Got my appointment to open my account on Tuesday.
Glad deano said you can transfer in from Barclays, don't fancy a trip in to town once a month to pay in money
|
deano87
Member
Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
User status: Offline
|
You can either transfer from your online banking like you can most accounts, credit cards etc.
Or when you create the online account with Nationwide you can pay via debit card.
|
Toby
Premium Member
Registered: 29th Nov 05
User status: Offline
|
Product started 4 years ago Kyle.
|
Toby
Premium Member
Registered: 29th Nov 05
User status: Offline
|
Been looking into this quite a lot over the weekend as due to another change in circumstances I won't be living in Lincoln anymore and will be moving back to my own house with a mate which is going to give the me chance to save heavily and potentially get another deposit saved up in the next year.
However did spot that this only open to FTBs so interested to hear how you got around it Kyle? Will speak to my current nationwide mortgage advisor next week as i will need some advice about how they would manage the fact that one of the properties is rented etc and how that will effect things.
|
