FAQ

What is a 95 percent mortgage?

A 95 percent mortgage is a type of mortgage where the borrower can borrow up to 95 percent of the property’s value, with a minimum deposit of 5 percent.

Who can get a 95 percent mortgage?

Most lenders offer 95 percent mortgages to first-time buyers, but they may also be available to existing homeowners who are looking to move.

What are the benefits of a 95 percent mortgage?

The main benefit of a 95 percent mortgage is that it allows borrowers to get on the property ladder with a smaller deposit. This can be helpful for first-time buyers who may struggle to save a larger deposit.

What are the risks of a 95 percent mortgage?

The main risk of a 95 percent mortgage is that it can be more expensive than a mortgage with a larger deposit. Borrowers may also be at risk of negative equity if house prices fall.

What are the eligibility criteria for a 95 percent mortgage?

To be eligible for a 95 percent mortgage, borrowers will typically need to have a good credit score and a stable income. Lenders may also have other criteria, such as a maximum loan size or a limit on the property’s value.