Small deposit? We have several mortgage options for you
We have access to a wide range of products so why not let us find you the right deal?
95% Loan to Value Mortgages
We have access to thousands of products so why not 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 is 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 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.
Deposit unlock
What is Deposit Unlock?
Deposit Unlock is a new scheme to help buyers, both first time and home movers, to buy a new build home with only a 5% deposit.
There are a number of Housebuilders participating and a limited number of participating mortgage lenders (currently Newcastle Building Society, Accord and Nationwide).
The scheme is aimed at helping buyers to purchase a new build home with a small deposit as lenders can be reluctant to offer high loan to value mortgages on new build homes.
It “replaces” the Help to Buy scheme that came to an end in 2023, which allows first time buyers to purchase a new build home with a 5% deposit.
The benefit of Deposit Unlock is that it gives you access to additional 95% mortgages on
new build properties.
How does Deposit Unlock work?
The New Build Housebuilder pays to insure the mortgage to reduce the risk to the Mortgage Lender.
This is aimed at making the lenders more comfortable with offering high LTV mortgages on new build properties.
Why not call one of our friendly team today to discuss your options 01442 860700.
Why not call one of our friendly team today to discuss your options 01442 860700.
Please Note:
The scheme is exclusively for the purchase of a new build home, with the maximum loan of £750,000 (subject to the lender and individual circumstances) and is not available for buy to let properties.
95% Loan to Value (LTV) Mortgages
For all home buyers
How does the scheme work?
95% Loan to Value (LTV) Mortgage Guarantee Scheme
This government-backed mortgage scheme has been launched to help home buyers with small deposits, of at least 5% of the purchase price, to make their move onto the housing ladder. This initiative is available to first time buyers and existing homeowners . It enables you to apply and secure a mortgage with only a 5% deposit on a property up to the maximum value of £600,000.
This guarantee scheme is available for both second hand properties and new build homes.
With this scheme, for a 95% mortgage, the government will guarantee 15% of the mortgage and should the mortgage fall into arrears will compensate the lender.
If you are looking to purchase a new build home and are ready to apply for a 95% mortgage, contact our specialist team who will use our relationships with specialist lenders and access to the open market to find the right mortgage deal to suit your circumstances. Our dedicated and friendly Mortgage Advisers offer no obligation advice and will be with you throughout your buying journey. Reducing the stress and making the process easier from mortgage application to completion of your new home.
Please note:
This scheme is for a repayment mortgage only. Second homes or buy-to-lets are not eligible for this scheme.
This scheme is for a repayment mortgage only. Second homes or buy-to-lets are not eligible for this scheme.
Saving for a deposit?
If you are currently saving for a deposit, our top three tips would be:
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.
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.
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.
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.
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SUBJECT TO STATUS AND LENDING CRITERIA
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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.
