95% mortgages are back and this is good news for all first-time buyers with a smaller deposit who're looking to get onto the property ladder with just a 5% deposit.
With a deposit at this level, you can move away from renting or living with family as soon as possible and have your very own place you can call home.
A 95% mortgage, also known as a 95% loan-to-value (LTV) mortgage, is a mortgage to purchase a property with a small deposit (at least 5% but less than 10% deposit of the purchase price).
Your deposit is the amount of money that you need to put into the mortgage to make up 100% of the final purchase price.
You still require the income and good credit score to borrow the remaining 95% so you can buy your new home.
A 95% mortgage enables you to borrow up to 95% of the purchase price of the property you want to buy, with the remaining 5% made up of your deposit.
An arrangement such as this will sometimes be referred to as a 95% LTV mortgage, where LTV stands for 'loan-to-value' ratio.
The lender will still want to see you can afford the mortgage so will be accessing things like your income, expenditure and very importantly your credit score and result aswell.
With only a 5% deposit required you can get onto the property ladder as soon as possible and reduce the time you spend paying rent or living with family.
Once moved into your new home your mortgage payments will slowly start to pay off the mortgage so in many years time you eventually own the home with no mortgage at all!
Many lenders for the purchase of a flat will require a larger deposit than 5%, however, we have access to lenders who can lend up to 95% on flats, meaning you can buy your home quicker.
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We have access to the lenders offering 95% mortgages.
Lenders will however expect better than standard credit reports with nearly all lenders offering 95% only agreeing to lend where the applicants have a near-perfect credit report and score.
It is also worth noting that with a 95% mortgage it's not just about having a good credit score but showing that you've had some form of credit recently and have used it responsibly.
Our team of mortgage brokers are specialists in helping you navigate all of the different rates, fee’s and deals to make sure you end up with just the one mortgage that’s right for you. We also help manage the whole process for you so it’s nice and straightforward.
Often the lenders will make assumptions or even worse let the computer make the decision on whether to lend to you, this is where we step in to ensure you get the correct consideration for your application and we help present your application in the most suitable light; increasing your chances of acceptance on your first application.
Our team of brokers are specialists with helping our first time buyers clients to purchase their first home with a 5% deposit.
Often the lenders will ask lots of questions or perform more scrunity on a 5% deposit mortgage, but we've got you covered and deal with the lender for you.
Access to over +90 lenders so you will get the most suitable rates and terms available with many of these lenders not available on the high street which are exclusive to brokers.
Real relationships with the lenders so we can get your application pre-approved if your situation isn’t straightforward. Plus your mortgage broker is there answer all the questions you may have.
We’re quick, on our first call we will quickly establish your options and let you know the next steps so we can arrange everything promptly for you.
If you prefer to speak face to face we can also arrange a video call.