How to secure a 95 per cent deal

30-Jan-2012

The 95 per cent mortgage has made a return to the first time buyer market, with the first few weeks of 2012 seeing a dramatic turnaround in lender confidence; it has been reported by the Guardian.

A recent report, adequately entitled 'Squeezed Britain', reflects what was a gloomy year for first time buyers in 2011. According to the Resolution Foundation, the proportion of low and middle income (LMI) earners aged under 35 and renting has more than tripled from 14 per cent in the late 1980s to 47 per cent now. It also found that the number of LMIs under 35 who owned a home plummeted from 51 per cent to just over a third during the past decade.

However, 2012 seems to be promising better things for first time buyers, as the 95 per cent mortgage returns. With banker confidence still low, the Guardian have advised the best ways of bagging a good mortgage deal.

Among the criteria, a clean credit record which reflects longevity in your career, your address and your bank account gives the lender more confidence in your loan. A clean record on paying rent can help lenders, some of the smaller lenders will use 'manual underwriting', which observes factors such as this.

Rent to Buy can make a good solution for first time buyers looking for a compromise solution

Published by Sam Franklin

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