A wide range of different types of mortgages are available if you need a 95% loan to value deal.
Many lenders do only give mortgages with a 5% deposit to existing borrowers or customers making them more restricted than many other types of mortgage.
That said, there are more 95% mortgages for first time buyers than you may have imagined, and also a greater choice of mortgage types at this loan to value than you might think.
95% mortgages for home movers are less available, especially if you want to change lender but it is worth researching your options as new deals are being offered all the time and you may get lucky.
The range of 95% mortgage deals available includes fixed, discounted or tracker deals, as well as less popular arrangements such as offset mortgages. This means you do have a relatively broad choice about the type of deal you apply for; so be sure to look into all your options before deciding on a specific type of mortgage.
When applying for a mortgage it is also important that you consider any fees and charges that may be given as well as the interest rates. As some charges may not be widely advertised and may affect the overall cost of the mortgage significantly.
At 95% ltv it is possible that you will need to pay a 'higher lending charge', which is a charge applied by the lender where a high proportion of the property value is borrowed. Remember to check for this and take it into your cost calculations so as not to be hit by a hefty fee that you weren't expecting.
While you need to pay significantly more per month for 5% deposit mortgages than would a borrower purchasing the same property with a 30% deposit, you should still shop around for a competitive deal so that you don't spend more than you have to on your home.
However, whether you're a first time buyer or homeowner looking to remortgage you need to consider that 95% ltv mortgages are secured loans and thus your home can be re-possessed by the lender should you default on your payments.
Therefore, only commit to a mortgage arrangement if you are completely confident that you will be able to keep up with the mortgage repayments over the long term, which typically will be about 25 years..