95% LTV – Loan to value mortgages
95% loan to value mortgages are popular with first time buyers as there is only a 5% deposit requirement which is appealing to those who are looking to get on the property ladder as quickly as possible with the minimum amount of deposit required.
Advantages of getting a 95% mortgage?
The most obvious advantage is that you’ll only need to save for a 5% deposit and if you have found it difficult to save for your home then this is a real positive. Having the option to put down a smaller deposit can mean that you’ll have more money available to help with other costs such as stamp duty, conveyancing fees or paying for new furniture etc.
Disadvantages to getting a 95% mortgage?
The smaller deposit you have to put down against your home then the more you’ll have to pay in interest fees. This applies to all the mortgage lenders in the market place. Someone with only a 5% deposit will pay a higher interest rate than someone who has a 10% deposit or even 15% deposit.
Therefore if you decide to pay a smaller deposit of 5% you must be prepared to pay more in interest for the privilege in doing so. The greater security the mortgage lender has the less you’ll be required to pay and the better interest rate you’ll obtain.
What 95% deals are available?
A simple search here on the website will display all of the 95% products available from the whole UK mortgage market place. You can compare all of the 95% mortgages side by side from each lender to see who is offering the best rates and deals.
How can I get further advice?
Our mortgage expert here on the website will be happy to go through all the deals that are available to you and explain what options you have.
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