CONNECT TEAM UPDATE – 95% Residential Mortgages and complex criteria

If you are struggling to find a deposit to buy a home, its good to know that following the pandemic restrictions, more lenders are coming back to the market at 95%, meaning you only need to find 5% of a properties value as a deposit.

You will also have to take into account other costs such as legal fees and stamp duty, but First time Buyers can purchase properties up to £300,000 with no stamp duty to pay even after the current incentives come to an end.

There are now over 30 lenders offering 95% mortgages with excellent rates and fees. Some offer additional incentives, such as lower rates, if a family member is willing to offer some additional security.

However, many of these lenders are ‘high street’ style lenders, and while very competitive on rate, they do not suit every applicant, particularly those with complex requirements around credit issues or income.

At Connect, we do also have access to specialist lenders who can consider a range of complex circumstances, while still lending up to 95% of the property’s value. These include:

Credit issues

  • Up to 2 late payments in the last 12 months on unsecured credit
  • CCJs and defaults over 3 years old considered
  • Debt Management plans and payday loans over 12 months old
  • More recent credit issues considered with a larger deposit

Complex income

  • Only 2 years accounts for self-employed (1 year for up to 85%)
  • Director income from either dividends or ltd company profits
  • Employed but still on probation considered
  • 100% of employed extras considered such as commission, bonus and travel
  • 100% of second jobs considered
  • 100% of child benefits and investment income considered
  • Up to 6 x income for young professionals such as doctors, solicitors, accountants
  • Contractors with a minimum of 12 months contracting

Complex property

  • 95% LTV on standard purchases
  • 95% on New Build consisting of 90% loan and 5% builder gifts accepted
  • 95% on Help to Buy shared ownership
  • Complex structures such as concrete and timber considered with larger deposits
  • Properties in England, Wales, Scotland and Northern Ireland (with larger deposit)

If you are looking for higher loan to values and have complex requirements, speak to an adviser at Connect. With access to over 155 lenders, we can assist with most circumstances.

Contact us  or call 01708 676111

The complex criteria has been taken straight off the Kensington criteria guide although it would appear that Aldermore have a similar offering with some additional flexibility points on some of the adverse. There are also a few building societies that don’t credit score up to 95% that are worth exploring.