90% Mortgages – Where are they now?

Essex Home Finance
With Accord Mortgages withdrawing from the 90% Mortgage Market, what is the current guidance and options for those with a smaller deposit?
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With Accord Mortgages withdrawing their 90% Mortgage range overnight, the ability to get a mainstream Mortgage for either First Time Buyers, or Homemovers, is now virtually impossible.

No lender will ever want to be last one providing a particular product, definitely where the differential is deposit size – and for many in our catchment of the South East, a 10% deposit is not a small amount of money.

Realistically, for the majority of First Time Buyers or Homemovers, a 15% Deposit is the absolute minimum amount needed. There are some very specialist schemes that can still lend up to 100% of the purchase price, but security of a parents home or additional monies will need to be put on deposit with the lender as a form of protection – and for many that just isn’t an option.

A Gifted Deposit from family members may be a means of increasing any deposit – some recent research suggested that ‘Bank of Mum and Dad’ are the 4th or 5th largest lender in the UK, definitely the largest unregulated lender!

But family may be in a position to help, whilst we all want our independence I would always suggest a family meeting to discuss finances, and to see if there is some means of help.

Mortgage Rates at 85% Loan to Value are still very competitive, and the less you need borrow will mean it is that little bit easier to secure a mortgage too.

The market will take time to rebuild around the small deposit mortgages – it is a combination of issues and as we leave lockdown, that will improve – but for now we would ask everyone to budget for at least a 15% Deposit, where we have a pretty full range of lenders and options, or if you would like to discuss the Family Assist Schemes that may support up to 100% of the purchase price, please get in touch.

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Essex Home Finance

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Address : 8 Kingsdale Business Centre, Regina Road, Chelsmford, Essex, CM1 1PE

Essex Home Finance Ltd is an Appointed Representative of Mortgage Intelligence Ltd which is authorised and regulated by the Financial Conduct Authority under number 305330 in respect of mortgage, insurance and consumer credit mediation activities only.

Registered address: 1 High Street, Chelmsford, Essex, CM1 1BE.

Registered in England & Wales under number 10607263.

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We do not charge for Residential First Time Buyers, Residential Home Movers, Residential Remortgage, and all Product Transfers (Residential or Buy to Let).

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There will be a fee for all Equity Release Mortgage cases. Typically our fee will be £695, payable on Offer. We will agree any fees with you before we proceed with your case.

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