95% mortgages - everything you need to know

95% mortgages - everything you need to know

If you’ve been trying to buy your first home, but haven’t yet saved up a big enough deposit, you could now be eligible to apply for a 95% loan to value (LTV) mortgage.

With a Government-backed 5% deposit mortgage, your moving dreams could become a reality sooner than you thought.

how to get a 95 percent mortgage

What is a 95% mortgage?

A 95% mortgage is a type of mortgage that allows you to borrow 95% of the property price from a lender. The remaining 5% is covered through your deposit.

How are these mortgages available?

These types of mortgages were available previously, but the number of 95% mortgage products largely decreased throughout the pandemic. However, the UK Government introduced a new scheme, valid from 19th April 2021, to incentivise lenders to reintroduce 95% mortgage deals.

what is a 95 percent mortgage

What do I need to know?

  • You can purchase properties up to £600,000with a 5% deposit
  • It’s open to all homebuyers(not just first-time buyers)
  • Normal mortgage affordability checks will still be in place

Does this mean I can now get a mortgage?

As always, this depends on your individual circumstances and affordability, which can be assessed by an expert mortgage adviser. However, as you now only require a 5% deposit for a 95% LTV mortgage, many prospective homeowners could find they have enough to buy their first property.

For example, if you were aiming to buy a £200,000 property, you now only need a £10,000 deposit, rather than the £20,000 deposit you would have needed with a 90% LTV mortgage.

If you still don’t think you have enough of a deposit saved, read our article about how to buy your first home with a small deposit for some ideas.

95 percent Mortgage

How do I get a 95% mortgage?

Although the scheme was launched last month, not all lenders have access to all the deals that are out there. Our professional mortgage advisers can search over 12,000 mortgages, from 90+ UK lenders - many of these are deals that aren't even available to High Street lenders.

We have a dedicated mortgage adviser based in each of our 9 branches, and have appointments available within a few days, meaning no-one is better placed to help find the right mortgage to suit you and your circumstances.

Book an appointment today and take the first step towards homeownership.