Small deposit? Great news 95% Loan to Value Mortgages are back
We have access to a wide range of products so why not let us find the right deal for you.
95% Loan to Value Mortgages
We have access to thousands of products let us find the right deal for you
With 95% mortgages recently returning to the market from many of the bigger mortgage providers, such as Skipton and the Nationwide Building Society, if you are seeking to buy a new property you may be confused about what this actually means.
So what is a 95% loan to value (LTV) mortgage?
The loan to value it’s the proportion of the value of the property that a lender is prepared to lend against. The greater the LTV the greater they perceive the risk to themselves to be and therefore it often comes with a higher rate of interest. So a 95% LTV mortgage means you can borrow 95% of the market value of your intended property purchase, meaning you only need to put down a 5% deposit. This will suit people wanting to get onto the property ladder who have smaller deposits or live in areas where house prices are higher.
So how can I get a 95% LTV Mortgage?
Not sure where to start with arranging a mortgage? Thinking of going directly to your bank may limit your options as they only have access to their own products, whereas we have access to the whole market.
Our friendly team are ready to help you 7 days a week.
We will do all the hard work for you.
We are passionate about making the purchase of your new home a whole lot easier.
So contact us today so we can guide you through the process and start finding you the right mortgage deal for your personal circumstances. We will look after you from the initial application right through to exchange of contracts and legal completion.
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.
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 7 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 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 research on the open market to find the right mortgage to suit your circumstances, offering free advice at every step of the way.
Saving for a deposit?
If you are currently saving for a deposit, our top three tips would be:
1. Acquire a good understanding of your ingoings and outgoings – it’s all too easy to get carried away with contactless and lose track of your day-to-day expenditure. We have access to budget planners to help you with this.
2. Set weekly budgets – it’s surprising how many don’t do this however it can be invaluable in focussing your spending and getting clarity on how much can be set aside week after week.
3. Start saving small – don’t get overwhelmed by thinking, “I need to save £10,000!” Get into the practice of saving with small amounts and then build from there. As they say, tall oaks from little acorns grow.
The service provided by our team of professionals is completely free.
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This is not a formal quotation or a commitment to lend. All figures provided are
for illustrative purposes only. Figures provided will be dependent on your financial situation,
property value and the size of your deposit or equity.
