Compare our best 95% mortgages

These 95% mortgages only need you to pay a 5% deposit, which could make it easier for you to get on the property ladder.

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What is a 95% mortgage?

A 95% loan to value (LTV) mortgage is one where you borrow 95% of the value of the property you're buying. The remaining 5% of the purchase price comes from your deposit. This is why you might sometimes hear them referred to as 5% deposit mortgages.

A 95% mortgage is a popular option for first-time buyers who often can’t afford to save up more than a small deposit. However, your choices are usually more limited with a 95% mortgage, and interest rates will be higher overall. This means you’ll spend more over the lifetime of the mortgage than if you’d saved a bigger deposit.

The most competitive mortgages tend to be reserved for those with a much higher deposit to put down – usually around 40%.

In 2020, near the start of the coronavirus pandemic, many lenders withdrew their 95% mortgage deals from the market. But thanks to a government guarantee scheme introduced in April 2021, which encouraged lenders to bring these products back to the market, there are now several 95% mortgage deals available.

Woman leaning on a window with her smartphone

How do 95% mortgages work?

To get a 95% LTV mortgage, you need a 5% deposit. This might be money you’ve saved up to buy your first home.

Alternatively, if you’re already on the property ladder and are remortgaging or moving, the 5% deposit could come from the equity in your existing property.

As well as having a 5% deposit, you also need to meet the lender’s eligibility criteria. Typically, this means having an adequate credit rating and proving that you can afford the monthly repayments. 

Most lenders will only let you borrow between three and five times your monthly salary, and if you’ve got a smaller deposit, they’ll be less likely to offer the maximum amount.

Once you’ve secured a 95% mortgage, you need to make monthly repayments to pay back what you owe, including interest on the loan.

The repayments are calculated based on whether you choose a fixed-rate mortgage or variable-rate mortgage, the deal you secure and the length of the term.

One risk to consider is getting into negative equity. If you have a 95% mortgage and the value of your home suddenly drops, it may be worth less than what you owe on your mortgage.

In this situation, you’re left paying interest on a loan that's bigger than the property's current value.

How to compare 95% mortgages

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246 results found, sorted by lowest initial rate. How we order our comparisons. Commission earned affects the table's sort order.
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Progressive Building Society 2 year discount for properties in Northern Ireland
Maximum LTV
95%
Initial rate
1.48% for 2 years (4.01% discount on SVR)
Subsequent rate (SVR)
5.49% variable
Overall cost for comparison
4.86% APRC
Progressive Building Society 2 year discount for properties in Northern Ireland
Available in branch only.
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product feeNo fee
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 2.00% of amount paid, in the first year

- 1.00% of amount paid, in the second year

Other fees may apply.

Eligibility
Available Direct
Available in Northern Ireland
First Time Buyers
Minimum Age18 years
Permanent UK Resident
Self Employed Accepted
Newcastle Building Society 2 year discount for existing borrowers
Maximum LTV
95%
Initial rate
2.35% until 31 Oct 2024 (1.61% discount on SVR)
Subsequent rate (SVR)
3.96% variable
Overall cost for comparison
3.8% APRC
Newcastle Building Society 2 year discount for existing borrowers
This product is only available for product transfers with your existing lender and not available for purchasing a new property.
Available via telephone only. Available to existing borrowers not moving only.
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product fee£999 with an option to add to the loan
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 1.00% of amount paid, before 31 Oct 2024

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Scotland
Available in Wales
Existing Borrowers Only
Max age at term end80 years
Minimum Age18 years
Permanent UK Resident
Self Employed Accepted
Scottish Building Society 2 year discount
Maximum LTV
95%
Initial rate
2.49% for 2 years (3.26% discount on SVR)
Subsequent rate (SVR)
5.75% variable
Overall cost for comparison
5.4% APRC
Scottish Building Society 2 year discount
Available in branch only.
More information
Application feeNo fee
Arrangement fee£995 paid upfront
Booking feeNo fee
Completion feeNo fee
Product feeNo fee
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 3.00% of the outstanding balance, in the first year

- 2.00% of the outstanding balance, in the second year

Other fees may apply.

Eligibility
Available Direct
Available in England
First Time Buyers
Max age at term end85 years
Minimum Age18 years
Minimum Income£40,000
Permanent UK Resident
Remortgage Available
Self Employed Accepted
Scottish Building Society 2 year discount for properties in Scotland
Maximum LTV
95%
Initial rate
2.49% for 2 years (3.26% discount on SVR)
Subsequent rate (SVR)
5.75% variable
Overall cost for comparison
5.4% APRC
Scottish Building Society 2 year discount for properties in Scotland
Available in branch only.
More information
Application feeNo fee
Arrangement fee£995 paid upfront
Booking feeNo fee
Completion feeNo fee
Product feeNo fee
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 3.00% of the outstanding balance, in the first year

- 2.00% of the outstanding balance, in the second year

Other fees may apply.

Eligibility
Available Direct
Available in Scotland
First Time Buyers
Max age at term end85 years
Minimum Age18 years
Minimum Income£40,000
Permanent UK Resident
Remortgage Available
Self Employed Accepted
Earl Shilton 5 year discount for existing borrowers
Maximum LTV
95%
Initial rate
2.74% for 5 years (2.85% discount on SVR)
Subsequent rate (SVR)
5.59% variable
Overall cost for comparison
4.5% APRC
Earl Shilton 5 year discount for existing borrowers
This product is only available for product transfers with your existing lender and not available for purchasing a new property.
Available in branch only. Available to existing borrowers not moving only.
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product feeNo fee
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 2.00% of amount paid, in the first two years

- 1.50% of amount paid, between 24 and 48 months

- 1.00% of amount paid, in the fifth year

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Wales
Existing Borrowers Only
Max age at term end85 years
Minimum Age18 years
Minimum Income£15,000
Permanent UK Resident
Self Employed Acceptedfalse
Scottish Building Society 2 year discount
Maximum LTV
95%
Initial rate
2.75% for 2 years (3% discount on SVR)
Subsequent rate (SVR)
5.75% variable
Overall cost for comparison
5.4% APRC
Scottish Building Society 2 year discount
Available in branch only.
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product feeNo fee
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 3.00% of the outstanding balance, in the first year

- 2.00% of the outstanding balance, in the second year

Other fees may apply.

Eligibility
Available Direct
Available in England
First Time Buyers
Max age at term end85 years
Minimum Age18 years
Minimum Income£40,000
Permanent UK Resident
Remortgage Available
Self Employed Accepted
Scottish Building Society 2 year discount for properties in Scotland
Maximum LTV
95%
Initial rate
2.75% for 2 years (3% discount on SVR)
Subsequent rate (SVR)
5.75% variable
Overall cost for comparison
5.4% APRC
Scottish Building Society 2 year discount for properties in Scotland
Available in branch only.
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product feeNo fee
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 3.00% of the outstanding balance, in the first year

- 2.00% of the outstanding balance, in the second year

Other fees may apply.

Eligibility
Available Direct
Available in Scotland
First Time Buyers
Max age at term end85 years
Minimum Age18 years
Minimum Income£40,000
Permanent UK Resident
Remortgage Available
Self Employed Accepted
Bath Building Society 2 year discount
Maximum LTV
95%
Initial rate
2.79% for 2 years (2.96% discount on SVR)
Subsequent rate (SVR)
5.75% variable
Overall cost for comparison
5.5% APRC
Bath Building Society 2 year discount
Available in branch only.
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product fee£999 with an option to add to the loan
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 3.00% of amount paid, in the first year

- 2.00% of amount paid, in the second year

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Scotland
Available in Wales
First Time Buyers
Max age at application85 years
Minimum Age18 years
Minimum Income£20,000
Permanent UK Resident
Self Employed Accepted
Chorley Building Society 2 year discount for first time buyers
Maximum LTV
95%
Initial rate
2.79% for 2 years (3.2% discount on SVR)
Subsequent rate (SVR)
5.99% variable
Overall cost for comparison
5.6% APRC
Chorley Building Society 2 year discount for first time buyers
Available via brokers only.
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product feeNo fee
Scheme fee£599 with an option to add to the loan
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 3.20% of amount paid, in the first two years

Other fees may apply.

Eligibility
Available in England
Broker Only
First Time Buyers Only
First Time Buyers
Minimum Age18 years
Permanent UK Resident
Self Employed Accepted
Chorley Building Society 2 year discount for first time buyers
Maximum LTV
95%
Initial rate
2.79% for 2 years (3.2% discount on SVR)
Subsequent rate (SVR)
5.99% variable
Overall cost for comparison
5.6% APRC
Chorley Building Society 2 year discount for first time buyers
Available via brokers only.
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product feeNo fee
Scheme fee£599 with an option to add to the loan
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 3.20% of amount paid, in the first two years

Other fees may apply.

Eligibility
Available in England
Broker Only
First Time Buyers Only
First Time Buyers
Minimum Age18 years
Permanent UK Resident
Self Employed Accepted
Earl Shilton 5 year discount for existing borrowers
Maximum LTV
95%
Initial rate
2.99% for 5 years (2.6% discount on SVR)
Subsequent rate (SVR)
5.59% variable
Overall cost for comparison
4.6% APRC
Earl Shilton 5 year discount for existing borrowers
This product is only available for product transfers with your existing lender and not available for purchasing a new property.
Available in branch only. Available to existing borrowers not moving only.
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product feeNo fee
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 2.00% of amount paid, in the first two years

- 1.50% of amount paid, in the third year

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Wales
Existing Borrowers Only
Max age at term end85 years
Minimum Age18 years
Minimum Income£15,000
Permanent UK Resident
Self Employed Acceptedfalse
Accord Mortgages 2 year discount cashback mortgage
Maximum LTV
95%
Initial rate
3.0% until 30 Nov 2024 (1.99% discount on SVR)
Subsequent rate (SVR)
4.99% variable
Overall cost for comparison
4.42% APRC
Accord Mortgages 2 year discount cashback mortgage
Available via brokers only.
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product fee£495 with an option to add to the loan
Additional information

Early repayment charge

If you pay all of your mortgage early you will be charged:

- 1.00% of amount paid, before 30 Nov 2024

Other fees may apply.

Eligibility
Available in England
Available in Scotland
Available in Wales
Broker Only
First Time Buyers
Max age at term end80 years
Minimum Age18 years
Permanent UK Resident
Remortgage Available
Self Employed Accepted
Leek United 2 year discount cashback mortgage
Maximum LTV
95%
Initial rate
3.0% for 2 years (2.84% discount on SVR)
Subsequent rate (SVR)
5.84% variable
Overall cost for comparison
5.4% APRC
Leek United 2 year discount cashback mortgage
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product feeNo fee
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 1.00% of the outstanding balance, in the first year

- 0.50% of the outstanding balance, in the second year

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Wales
First Time Buyers
Max age at term end85 years
Minimum Age18 years
Permanent UK Resident
Self Employed Accepted
Leek United 2 year discount for existing borrowers
Maximum LTV
95%
Initial rate
3.0% for 2 years (2.84% discount on SVR)
Subsequent rate (SVR)
5.84% variable
Overall cost for comparison
5.4% APRC
Leek United 2 year discount for existing borrowers
This product is only available for product transfers with your existing lender and not available for purchasing a new property.
Available to existing borrowers not moving only.
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product feeNo fee
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 1.00% of the outstanding balance, in the first year

- 0.50% of the outstanding balance, in the second year

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Wales
Existing Borrowers Only
Max age at term end85 years
Minimum Age18 years
Permanent UK Resident
Self Employed Accepted
Accord Mortgages 2 year discount
Maximum LTV
95%
Initial rate
3.02% until 30 Nov 2024 (1.97% discount on SVR)
Subsequent rate (SVR)
4.99% variable
Overall cost for comparison
4.44% APRC
Accord Mortgages 2 year discount
Available via brokers only.
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product feeNo fee
Additional information

Early repayment charge

If you pay all of your mortgage early you will be charged:

- 1.00% of amount paid, before 30 Nov 2024

Other fees may apply.

Eligibility
Available in England
Available in Scotland
Available in Wales
Broker Only
First Time Buyers
Max age at term end80 years
Minimum Age18 years
Permanent UK Resident
Remortgage Available
Self Employed Accepted
Suffolk Building Society 2 year discount
Maximum LTV
95%
Initial rate
3.09% for 2 years (2.45% discount on SVR)
Subsequent rate (SVR)
5.54% variable
Overall cost for comparison
4.9% APRC
Suffolk Building Society 2 year discount
More information
Application fee£199 paid upfront (non-refundable)
Arrangement feeNo fee
Booking feeNo fee
Completion fee£999 with an option to add to the loan
Product feeNo fee
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 1.00% of amount paid, in the first two years

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Wales
First Time Buyers
Max age at term end85 years
Minimum Age18 years
Permanent UK Resident
Self Employed Acceptedfalse
Suffolk Building Society 2 year discount remortgage
Maximum LTV
95%
Initial rate
3.09% for 2 years (2.45% discount on SVR)
Subsequent rate (SVR)
5.54% variable
Overall cost for comparison
4.9% APRC
Suffolk Building Society 2 year discount remortgage
More information
Application fee£199 paid upfront (non-refundable)
Arrangement feeNo fee
Booking feeNo fee
Completion fee£999 with an option to add to the loan
Product feeNo fee
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 1.00% of amount paid, in the first two years

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Wales
Max age at term end85 years
Minimum Age18 years
Permanent UK Resident
Remortgage Available
Remortgage Only
Self Employed Acceptedfalse
Accord Mortgages 2 year discount cashback mortgage
Maximum LTV
95%
Initial rate
3.1% until 30 Nov 2024 (1.89% discount on SVR)
Subsequent rate (SVR)
4.99% variable
Overall cost for comparison
4.44% APRC
Accord Mortgages 2 year discount cashback mortgage
Available via brokers only.
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product fee£495 with an option to add to the loan
Additional information

Early repayment charge

If you pay all of your mortgage early you will be charged:

- 1.00% of amount paid, before 30 Nov 2024

Other fees may apply.

Eligibility
Available in England
Available in Scotland
Available in Wales
Broker Only
First Time Buyers
Max age at term end80 years
Minimum Age18 years
Permanent UK Resident
Self Employed Accepted
Progressive Building Society 2 year fixed for properties in Northern Ireland
Maximum LTV
95%
Initial rate
3.19% fixed for 2 years
Subsequent rate (SVR)
5.49% variable
Overall cost for comparison
5.23% APRC
Progressive Building Society 2 year fixed for properties in Northern Ireland
Available in branch only.
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product feeNo fee
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 3.00% of amount paid, in the first two years

Other fees may apply.

Eligibility
Available Direct
Available in Northern Ireland
First Time Buyers
Minimum Age18 years
Permanent UK Resident
Self Employed Acceptedfalse
Loughborough 5 year fixed
Maximum LTV
95%
Initial rate
3.25% fixed for 5 years
Subsequent rate (SVR)
5.59% variable
Overall cost for comparison
4.8% APRC
Loughborough 5 year fixed
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product feeNo fee
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 5.00% of the original loan, in the first two years

- 4.00% of the original loan, in the third year

- 3.00% of the original loan, in the fourth year

- 2.00% of the original loan, in the fifth year

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Wales
First Time Buyers
Max age at term end80 years
Minimum Age18 years
Permanent UK Resident
Self Employed Accepted
Newcastle Building Society 2 year fixed for existing borrowers
Maximum LTV
95%
Initial rate
3.29% fixed until 31 Oct 2024
Subsequent rate (SVR)
3.96% variable
Overall cost for comparison
4.0% APRC
Newcastle Building Society 2 year fixed for existing borrowers
This product is only available for product transfers with your existing lender and not available for purchasing a new property.
Available via telephone only. Available to existing borrowers not moving only.
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product fee£999 with an option to add to the loan
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 2.00% of amount paid, before 31 Oct 2023

- then 1.00% of amount paid, until 31 Oct 2024

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Scotland
Available in Wales
Existing Borrowers Only
Max age at term end80 years
Minimum Age18 years
Permanent UK Resident
Self Employed Accepted
Loughborough 2 year discount
Maximum LTV
100%
Initial rate
3.35% for 2 years (2.24% discount on SVR)
Subsequent rate (SVR)
5.59% variable
Overall cost for comparison
4.4% APRC
Loughborough 2 year discount
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product feeNo fee
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 2.00% of the original loan, in the first two years

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Wales
First Time Buyers
Max age at term end80 years
Minimum Age18 years
Permanent UK Resident
Remortgage Available
Self Employed Accepted
Monmouthshire Building Society 2 year fixed for existing borrowers
Maximum LTV
95%
Initial rate
3.49% fixed for 2 years
Subsequent rate (SVR)
5.49% variable
Overall cost for comparison
5.3% APRC
Monmouthshire Building Society 2 year fixed for existing borrowers
This product is only available for product transfers with your existing lender and not available for purchasing a new property.
Available to existing borrowers not moving only.
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product feeNo fee
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 3.00% of amount paid, in the first two years

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Wales
Existing Borrowers Only
Max age at application80 years
Max age at term end85 years
Minimum Age18 years
Permanent UK Resident
Self Employed Accepted
Newcastle Building Society 5 year fixed for existing borrowers
Maximum LTV
95%
Initial rate
3.49% fixed until 31 Oct 2027
Subsequent rate (SVR)
3.96% variable
Overall cost for comparison
3.9% APRC
Newcastle Building Society 5 year fixed for existing borrowers
This product is only available for product transfers with your existing lender and not available for purchasing a new property.
Available via telephone only. Available to existing borrowers not moving only.
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product fee£999 with an option to add to the loan
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 5.00% of amount paid, before 31 Oct 2023

- then 4.00% of amount paid, until 31 Oct 2024

- then 3.00% of amount paid, until 31 Oct 2025

- then 2.00% of amount paid, until 31 Oct 2026

- then 1.00% of amount paid, until 31 Oct 2027

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Scotland
Available in Wales
Existing Borrowers Only
Max age at term end80 years
Minimum Age18 years
Permanent UK Resident
Self Employed Accepted
Newcastle Building Society 2 year fixed shared equity for existing borrowers
Maximum LTV
95%
Initial rate
3.55% fixed until 31 Oct 2024
Subsequent rate (SVR)
3.96% variable
Overall cost for comparison
3.9% APRC
Newcastle Building Society 2 year fixed shared equity for existing borrowers
This product is only available for product transfers with your existing lender and not available for purchasing a new property.
Available via telephone only. This mortgage is available for new builds only on the Help to Buy Equity loan scheme. Available to existing borrowers not moving only.
More information
Application feeNo fee
Arrangement feeNo fee
Booking feeNo fee
Completion feeNo fee
Product feeNo fee
Additional information

Early repayment charge

If you pay all or part of your mortgage early you will be charged:

- 2.00% of amount paid, before 31 Oct 2023

- then 1.00% of amount paid, until 31 Oct 2024

Other fees may apply.

Eligibility
Available Direct
Available in England
Available in Scotland
Available in Wales
Existing Borrowers Only
Max age at term end80 years
Minimum Age18 years
Permanent UK Resident
Self Employed Accepted

What can 95% mortgages be used for?

You can use 95% mortgages if you're buying your first property, moving home or even remortgaging.

Buying your first home

95% mortgages are popular with first-time buyers because you only need a small deposit.

Keep in mind that interest rates on a 95% LTV mortgage won't be as favourable as those on a mortgage with a lower LTV ratio. If you can manage to offer a 10% deposit, you’ll get much better deals.

It’s also worth bearing in mind that some mortgage lenders won't accept first-time buyers even with a 5% deposit, so make sure you check before applying.

Here's how to find a mortgage to buy your first home and check if you can afford it.

Moving home

When moving home, you can use the equity in your existing property, alongside any additional savings for your deposit. If that total is 5% of the new property’s value, then you would be looking at a 95% mortgage.

For example, imagine your current house is worth £200,000 and you still owe £175,000 on the mortgage. That means your total equity is £25,000. If your next home was valued at £500,000, your deposit of £25,000 would be worth just 5% and you’d need a 95% mortgage.

If you decided to buy a new house costing £250,000 instead, your deposit would equal 10% and you’d only need a 90% LTV mortgage. This would give you a better range of options and interest rates.

Remortgaging

It’s possible to remortgage and get a new 95% LTV mortgage, but it can be hard. Lenders typically prefer you to have more equity in the home when you remortgage.

However, if you shop around you might be able to get a deal and there are more options available since the government introduced its mortgage guarantee scheme (see below).

Generally speaking, interest rates will be high, so you’ll end up with a more expensive deal. If you were previously on a 100% LTV mortgage, moving to a 95% mortgage might be worthwhile as you are likely to get a better rate.

If you’re remortgaging to access the equity in your home – for instance, to finance improvements to the property – you might be better off going for a lower LTV or waiting till you’ve built up more equity.

Who can get 95 percent mortgages?

Lenders won't usually give you a 95% mortgage unless you've got an excellent credit history.

Offering 95% mortgages is a risky option for lenders, so the more reliable you are as a borrower, the more likely you are to be accepted.

As with any mortgage, lenders will scrutinise your finances closely, including your income, debts and outgoings, before deciding whether you can afford a 95% mortgage.

If you are unsure whether you’ll be eligible for a 95% LTV mortgage, it’s worth seeking expert advice from a mortgage broker to get advice.

Advantages of 95% mortgages

  • You only need to put down 5% of the property’s value, making it easier to save a deposit if you’re a first-time buyer.

  • Thanks to the government’s guarantee scheme, several lenders are now offering 95% mortgages again, giving you more choice.

  • You’ll have more choice and a better interest rate with a 95% mortgage compared to a 100% mortgage.

Disadvantages of 95% mortgages

  • Interest rates and fees will be higher compared to lower LTV mortgage options, which means you’ll pay much more over the course of your mortgage repayments.

  • There’s a risk of negative equity - if the value of your property suddenly drops, it may be worth less than what you owe on your mortgage.

  • As you’re putting down a smaller deposit, you might not be able to borrow the maximum amount based on your income.

Government 95% mortgage guarantee scheme

At the start of the Covid-19 pandemic, the majority of 95% mortgages were pulled from the market, making choices for first-time buyers far more limited. Fortunately, the chancellor introduced a new mortgage guarantee scheme on 1 April 2021.

The scheme is designed to encourage lenders to offer 95% mortgages, with the government acting as a guarantor for 15% of the debt if the borrower is unable to repay the mortgage.

The scheme runs until 31 December 2022, and mortgages must be for residential properties that cost £600,000 or less. Major lenders have launched products under the scheme, including Santander, Barclays, Lloyds, NatWest and HSBC.

How much can I borrow with a 95% mortgage?

The amount you can borrow for any mortgage depends on your personal financial situation and whether you meet the lender’s individual affordability criteria. Lenders will look at:

  • Your salary

  • Your income

  • Your outgoings

  • Any debts

  • Your dependents

  • Your credit history

Typically, you can borrow around three or four times your salary when you get a 95 percent mortgage. It might be a bit less than this if you're getting a mortgage with someone else and basing it on two incomes.

Remember that every mortgage lender has different criteria to help them decide how much and to whom they'll lend.

Providing you can afford the monthly mortgage repayment, a 95% mortgage can be a good option. However, saving as much of a deposit as possible will help lower your interest rate and reduce the amount you pay overall. Always try to choose a repayment mortgage if you can.

Other things to consider when choosing a 95% mortgage

Fixed-rate vs variable-rate mortgages


When you take out a mortgage with a 5% deposit, you'll pay a set amount of interest on your repayments.

Whether this rate is fixed or variable can affect your monthly payments and how much you'll pay overall.

If you get a fixed-rate mortgage the interest rate remains the same for a set length of time, which means you know how much your monthly repayments will be.

These tend to be more expensive at the outset, but you get security in return.

If you get a variable-rate mortgage the interest tracks another financial indicator, most often the Bank of England base rate. The amount you pay each month goes up or down in line with this.

Generally, these deals start off cheaper, but if interest rates go up, you could end up with expensive monthly repayments.

First-time buyer schemes


While the return of 95% mortgages to the market was good news for many first-time buyers in the UK, you might find that you're still struggling to save a deposit and get on the property ladder.

If that's the case, there are some additional schemes you might be able to take advantage of:

  • Help to Buy Equity Loan - enables first-time buyers to boost their deposit when buying a new-build property in England (this scheme ends in March 2023 and reservations must be made by the end of October 2022 in order to be eligible).

  • Shared ownership: lets first-time buyers purchase a share of the property and pay rent on the rest.

  • Lifetime ISA - encourages first-time buyers to save for their deposit by offering a 25% top-up from the government on any amount saved up to £4,000 per year.

Learn more about mortgages for first-time buyers.

95% mortgage FAQs

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