Is a 95 per cent mortgage right for me?
95 per cent mortgage rates are particularly enticing to first-time property buyers, largely thanks to the deposit being smaller. In some instances though, a 95 per cent mortgage may also be the preferred option for those folks simply looking to move home.
However, 95 per cent mortgages are not always that easy to apply for. Some are designed just for first-time buyers only, while others have been set up for people who have registered with the government’s Help To Buy scheme, which is for those who can only manage to raise the 5% deposit and no more. It’s also worth considering that although you can usually borrow anything in the region of £50,000 and £500,000, a 95 per cent mortgage is a higher risk for a lender and often has higher interest rates than that of a mortgage with a lower Loan-to-Value ratio.
So it’s worth starting a mortgage quote and simply popping in your details to find out what mortgage works best for you.