Question 1

What is a 95% mortgage?

Accepted Answer

A 95% mortgage is also known as a 95% loan to value (LTV) mortgage. It means you can borrow 95% of the value of a property. So your deposit only needs to be 5%.

Question 2

How does a 95% mortgage work?

Accepted Answer

To get a 95% mortgage, you need to have a 5% deposit. For example, if you wanted to buy a £300,000 home: £300,000 = £15,000 + £285,000.

Question 3

Is a 95% mortgage right for me?

Accepted Answer

You only need a 5% deposit. It’s available for first time buyers, home movers and remortgages. You could borrow between £50,000 and £600,000 if you meet our lending criteria.

Question 4

Things to consider with a 95% mortgage

Accepted Answer

Interest rates can be higher than other mortgages. There is a higher risk of your home falling into negative equity. This is when the value of your home falls below what you still owe on a mortgage. As with all mortgages, early repayment charges and other fees and charges may apply.