Hi,

Try Homebuy direct, new gov scheme which will fund your deposit up to 30%. Some good options with these, however limitations are numerous, just a few:

* You can only have 2 beds if you are a childless couple (and don't work from home).

* The selection of homes is limited (but plenty of new builds).

* The loan for the deposit is interest free for 5 yrs, and I believe you can then pay monthly at the rate specified or it may be an option to add to your mortgage or you can sell up and you have to return 30% of current (i.e. not the price you paid) value to the lender.

* The deposit loan amount will be judged on your income basically the less you earn the more deposit % you may be able to lend. (You are not eligible if you earn over £60k jointly - so no big payrise until you've brought one!)

http://www.redrow.co.uk/pdf/homebuy/HomeBuyDirect%20Buyers%20Guide%20April%202009.pdf

Nearly all home builders are partaking in the scheme. Google 'homebuy direct'

Good luck

Hi Louise,

Many thanks for your help - but unfortunately Clydesdale are limiting their lending to 3.5x salary on 95% mortgages - we need 3.65x....

Serves us right for living in the SE I suppose but is annoying; especially as they do not accept other income; bonus, dividends etc...

I appreciate 3-3.5x is the accepted good, affordable multiplier - but it is just simply different when trying to buy somewhere in the London area.

Do you know of any other lenders offering products directly?

Hi House_Hunter

Yorkshire BS and Clydesdale Bank (both part of the same group) have a 6.69% fixed rate product to 30/06/2012 on offer up to 95%. It is only available if you approach the Lender directly (not available through brokers)

Yorkshire BS are offering 95% LTV? Do you have any more info? Haven't seen that offered?

The only 95% LTV I had seen was with the abbey - but that appears to have gone now as well....

Hi dhill

Technically any Lender would be uncomfortable with this approach - which they would view as a 100% mortgage through the back door (ie you have borrowed all the money to buy the house). As all financial transactions are now registered on your credit profile, either the Lender or the loan company would know about the other transaction (dependant on which application you made first) - so you would not be able to do the double borrowing under the radar.

I do understand your frustration - which is the biggest problem for all potential first time buyers at the moment. However, there is really no legitimate way around the need for a deposit. You may want to consider the Yorkshire Building Society - who will consider applications with a 5% deposit. Still a big leap, but not as difficult to imagine as the full 10%.

Hi,

Myself and my partner earn a joint salary of £31000. We have no debts and currently renting an apartment at £450 per month. We are only 22 and want to try and see what options are available to us in regards to buying our first property. We currently have savings of around £1000 which is not sufficient for a deposit. Obtaining a deposit from savings could take between 5-10 years. Is it possible for us to take out £10000 loan for a deposit and get a mortgage for £90000 so we could buy a £100000 house?

Thank you in advance for any advice given.

Regards