Who can get a 95% mortgage?
Because the loan amount is very high, 95% mortgages are few and far between – but they are still available.
They’re particularly helpful to home buyers with a small deposit, such as anyone registered with the government’s Help to Buy scheme or first-time buyers (some providers will only offer 95% mortgages to the latter).
Having a 5% deposit and asking a bank or building society to provide the remaining 95% of the house price is a big risk for any lender. With this in mind, to qualify for such a large mortgage you’ll probably need an excellent credit history. You’ll also have to prove you can afford the mortgage repayments by showing the provider details of your income and outgoings, as well as any existing debts.
Mortgage providers all have different criteria for accepting mortgage applicants, so if you’ve been turned down before this doesn’t mean you’ll never qualify for a mortgage. As a rough guide, mortgage providers are usually willing to lend up to three or four times your salary, or slightly less than that if you’re basing the mortgage on two incomes.