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Correct at 08/03/2022

Apply for a 95% mortgage with L&C

If you’re looking for a 95% mortgage, L&C can help you find the best deal to suit your needs.

You can search for 95% mortgages using our online Mortgage Finder tool, which will help narrow down the options available to you. Once you’ve spoken to one of our mortgage experts and we’ve recommended the best deal for you, you can either apply online or over the phone.

We’ll continue to be on hand to help you through the mortgage process and provide you with all the support you need from start to finish.

Get in touch today and see how L&C can help you find the right 95% mortgage for you.

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95% LTV Mortgages Explained

When you take out a 95% mortgage, you’ll put down a deposit of 5% and borrow the remaining 95% of the property’s value. These are often called “95% LTV mortgages”, where LTV stands for “loan to value”. Simply put, this is the percentage of the mortgage in relation to the property value.

Some lenders only offer this type of deal to first time buyers, who may also be eligible for the government’s Help to Buy scheme which is designed to help those with small deposits. Some lenders offer Government 95% mortgages, where the loan is supported by the Government’s Mortgage Guarantee Scheme. That means that, if you were unable to pay back what you borrowed against your home, the UK Government would offer financial support to your lender to help them with any losses.

The main advantage of a 95% mortgage is that it can make it easier to buy a property, especially for first time buyers who may struggle to save up enough deposit to get on the property ladder otherwise.

It’s worth noting that if you can afford to put down a bigger deposit, you may be able to take out a 90% mortgage. This works in the same way, but with you putting down a 10% deposit and borrowing the remaining 90%. A wider range of mortgage deals at lower rates are often available if you have a bigger deposit.

You should also bear in mind that if property prices go down, you may be left with negative equity, where you owe more than the value of the property.

95% Mortgage Process

Taking out a 95% mortgage means that you’ll put down 5% of the property value as a deposit, with the remaining 95% taken out as a loan. For example, if you’re buying a property with a value of £250,000, you would need £12,500 for your deposit. You would then get a mortgage for the remaining £237,500.

If this sounds like the right type of mortgage for you, you can use our Mortgage Finder to find 95% mortgage deals you might qualify for. Just tell us about your circumstances and what you’re looking for, and we’ll scour the market to find the best deals for you.

95% Mortgage Eligibility Criteria

As with any type of mortgage, 95% mortgage lenders are looking to assess your affordability. That means they want to know not just about your income but also how you spend your money, so you should be prepared to share your bank statements and details of any debts and credit cards. However, if you have a good credit record and can prove to lenders that you’re able to afford your mortgage payments, both now and if interest rates rise in future, you have a good chance of being offered a competitive 95% mortgage deal.

If you’re applying for the Government’s 95% mortgages scheme, there are some eligibility criteria you must meet:

  • Your property must be valued at no more than £600,000
  • Your property should not be a new build
  • You must be applying for a residential mortgage. You cannot use this scheme for a 95% Buy to Let mortgage, or to buy a second home.
  • It must be a repayment mortgage rather than an interest-only one
  • You cannot take out any additional borrowing on your mortgage for the next seven years

Finding the best 95% LTV Mortgage Deal

Before you apply for your mortgage, it’s a smart idea to make sure your credit rating is good and there are no errors on your report. This can be done for free via any of the big credit reference agencies such as Experian, Equifax and Clearscore, and ensures that you can correct any omissions or errors which may cause issues with your mortgage application.

Although there are some great deals out there for those with smaller deposits, you’ll always get better rates if you can put down a bigger amount as the interest rate on 95% mortgages tends to be higher.

However, if you’re ready to go ahead and apply for a 95% mortgage, we can help you to find the best deals on the market. We’ll scour the market to find the right mortgage to suit your circumstances, offering free advice at every step of the way.

95% LTV Remortgage Deals

One of the downsides of a 95% mortgage is that, although it can help you to get onto the property ladder, it can be difficult to remortgage your home in the future as you’ll only have a small amount of equity in your home. However, there are 95% remortgage deals out there.

Whether you originally had a 95% mortgage and need the same again or are looking for a 95% remortgage to decrease your equity and free up finances to renovate your home, we can help you to find the right loan for you.

We have access to thousands of deals from over 90 lenders, so you can be safe in the knowledge we’ll find the best 95% LTV remortgage to suit your needs.

95% mortgage FAQs

Can first time buyers get a 95% mortgage?

Yes, 95% mortgages are ideal for first time buyers who can often only afford to put down a small deposit. Find out more in our Guide to 90% and 95% mortgages.

How hard is it to get a 95% mortgage?

Provided you have a good credit record and can prove to lenders that you’re able to afford your mortgage payments both now and if interest rates rise in future, it should be possible to get a 95% mortgage.

Are 95% mortgages a good idea?

Often a 95% mortgage is the only way many first time buyers can get onto the property ladder. It’s important to remember though that if you can afford to put down a bigger deposit, you’ll have a broader range of mortgage deals to choose from at lower rates.