Best 95% mortgage deals

What is a 95% mortgage?

A 95% mortgage means you borrow 95% of the property’s value from the lender and pay a 5% deposit yourself.

For example, if the home you want to buy costs £200,000, you’d only need a £10,000 deposit. The rest (£190,000) would be covered by your mortgage.

This type of mortgage is a popular option for first-time buyers or people who haven’t had time to save a big deposit. It can also help you move sooner if you’re already a homeowner.

Interest rates for 95% mortgages can sometimes be a little higher, because the lender is taking on a bit more risk. But there are lots of deals out there, and our mortgage advisers can help find the right one for you.

Why choose a 95% mortgage?

95% mortgages offer some important advantages:

• You can buy a home with a smaller deposit.
• You could get on the property ladder faster.
• You still have lots of mortgage deals to choose from.

These mortgages can be a good choice if you have a steady income but not a lot of savings yet. They are especially useful for first-time buyers who are finding it tough to save while paying rent.

Some lenders also offer special schemes to make it even easier to get a 95% mortgage, like government-backed options.

How 95% mortgages work

When you take out a 95% mortgage, your monthly payments will depend on the type of deal you choose.

Fixed rate deals mean your payments stay the same for a set period (like two or five years). Variable rate deals can go up or down over time.

Once your initial deal ends, you’ll normally move onto your lender’s standard variable rate (SVR), which could be higher. At that point, you can look at remortgaging to a new deal to keep your payments lower.

Who can get a 95% mortgage?

To get a 95% mortgage, you’ll need to show the lender that you can afford the repayments. They’ll want to see that your finances are in good shape.

You’ll normally need to provide:

• 3–6 months of payslips
• Recent bank statements
• Your monthly outgoings
• Your credit history
• Information about your deposit

If you’re self-employed, you’ll also need to provide tax returns or business accounts.

Before applying, it’s a good idea to check your credit report with agencies like Experian, Equifax or TransUnion. Sorting out any mistakes can give you a better chance of getting the best 95% mortgage rates.

How to find the best 95% mortgage deals

95% mortgages are offered by lots of different lenders, but deals can vary. It’s important to shop around and find a mortgage that suits you.

You can use our online mortgage finder to check the latest 95% mortgage deals from across the market.

We work with over 90 lenders and can search through all the options to find a deal that matches your circumstances. Whether you want a fixed rate, a variable rate or a government-backed scheme, we’ll help you explore what’s available.

Our expert advisers are also on hand to guide you through the whole process. If a 95% mortgage is right for you, we’ll support you every step of the way.

Making repayments on a 95% mortgage

Your monthly repayments will depend on the size of your loan, your interest rate, and the type of mortgage you choose.

Fixed rate mortgages mean your payments stay the same for a certain time, which can make budgeting easier.

Variable rate mortgages could save you money if interest rates fall, but they could also rise if rates go up.

Whichever type you choose, we’ll make sure you understand exactly what to expect before you apply.