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With an increasing number of lenders offering 95% loan-to-value (LTV) mortgages – and lowering their interest rates as a result of intensifying competition – you could find more deals available to buy a home with only a 5% deposit. If you would like more information on 95% LTV Mortgages read our guides below.

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%
APRC
Product Fees
Initial Monthly Payment
Total Repayable Over years
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Maximum Loan to Value
Charges and Fees
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Flexible Features
Incentives
Revert Rates

Maximum Loan to Value

First Time Buyers
Second Time Buyers
Remortgage
Minimum Loan
Maximum Loan

Charges and Fees

Early Repayment Charge
Exit Fees

Application Criteria

Maximum Age
Minimum Income
Available To

Flexible Features

Underpayments
Overpayments
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Lump Sum

Incentives

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%
APRC
Product Fees
Initial Monthly Payment
Total Repayable Over years
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Maximum Loan to Value
Charges and Fees
Application Criteria
Flexible Features
Incentives
Revert Rates

Maximum Loan to Value

First Time Buyers
Second Time Buyers
Remortgage
Minimum Loan
Maximum Loan

Charges and Fees

Early Repayment Charge
Exit Fees

Application Criteria

Maximum Age
Minimum Income
Available To

Flexible Features

Underpayments
Overpayments
Payment Holidays
Draw Down
Lump Sum

Incentives

Revert Rate

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APRC
Product Fees
Initial Monthly Payment
Total Repayable Over years
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Maximum Loan to Value
Charges and Fees
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Incentives
Revert Rates

Maximum Loan to Value

First Time Buyers
Second Time Buyers
Remortgage
Minimum Loan
Maximum Loan

Charges and Fees

Early Repayment Charge
Exit Fees

Application Criteria

Maximum Age
Minimum Income
Available To

Flexible Features

Underpayments
Overpayments
Payment Holidays
Draw Down
Lump Sum

Incentives

Revert Rate

Leeds BS Logo
Rate
%
APRC
Product Fees
Initial Monthly Payment
Total Repayable Over years
Go To Provider's Site
Maximum Loan to Value
Charges and Fees
Application Criteria
Flexible Features
Incentives
Revert Rates

Maximum Loan to Value

First Time Buyers
Second Time Buyers
Remortgage
Minimum Loan
Maximum Loan

Charges and Fees

Early Repayment Charge
Exit Fees

Application Criteria

Maximum Age
Minimum Income
Available To

Flexible Features

Underpayments
Overpayments
Payment Holidays
Draw Down
Lump Sum

Incentives

Revert Rate

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APRC
Product Fees
Initial Monthly Payment
Total Repayable Over years
Go To Provider's Site
Maximum Loan to Value
Charges and Fees
Application Criteria
Flexible Features
Incentives
Revert Rates

Maximum Loan to Value

First Time Buyers
Second Time Buyers
Remortgage
Minimum Loan
Maximum Loan

Charges and Fees

Early Repayment Charge
Exit Fees

Application Criteria

Maximum Age
Minimum Income
Available To

Flexible Features

Underpayments
Overpayments
Payment Holidays
Draw Down
Lump Sum

Incentives

Revert Rate

Post Office Money® Logo
Rate
%
APRC
Product Fees
Initial Monthly Payment
Total Repayable Over years
Go To Provider's Site
Maximum Loan to Value
Charges and Fees
Application Criteria
Flexible Features
Incentives
Revert Rates

Maximum Loan to Value

First Time Buyers
Second Time Buyers
Remortgage
Minimum Loan
Maximum Loan

Charges and Fees

Early Repayment Charge
Exit Fees

Application Criteria

Maximum Age
Minimum Income
Available To

Flexible Features

Underpayments
Overpayments
Payment Holidays
Draw Down
Lump Sum

Incentives

Revert Rate

Post Office Money® Logo
Rate
%
APRC
Product Fees
Initial Monthly Payment
Total Repayable Over years
Go To Provider's Site
Maximum Loan to Value
Charges and Fees
Application Criteria
Flexible Features
Incentives
Revert Rates

Maximum Loan to Value

First Time Buyers
Second Time Buyers
Remortgage
Minimum Loan
Maximum Loan

Charges and Fees

Early Repayment Charge
Exit Fees

Application Criteria

Maximum Age
Minimum Income
Available To

Flexible Features

Underpayments
Overpayments
Payment Holidays
Draw Down
Lump Sum

Incentives

Revert Rate

Post Office Money® Logo
Rate
%
APRC
Product Fees
Initial Monthly Payment
Total Repayable Over years
Go To Provider's Site
Maximum Loan to Value
Charges and Fees
Application Criteria
Flexible Features
Incentives
Revert Rates

Maximum Loan to Value

First Time Buyers
Second Time Buyers
Remortgage
Minimum Loan
Maximum Loan

Charges and Fees

Early Repayment Charge
Exit Fees

Application Criteria

Maximum Age
Minimum Income
Available To

Flexible Features

Underpayments
Overpayments
Payment Holidays
Draw Down
Lump Sum

Incentives

Revert Rate

Representative Example

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Credit will be secured by a mortgage on your property. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Written quotations are available from individual lenders. Loans are subject to status and valuation and are not available to persons under the age of 18. All rates are subject to change without notice. Please check all rates and terms with your lender or financial adviser before undertaking any borrowing.

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95% LTV mortgages explained

Leanne Macardle

Leanne Macardle

Editor

At a glance

  • The LTV is the percentage of the mortgage you need to borrow against the total value of the property you are buying.
  • 95% LTV mortgages for first-time buyers can be a useful way to get on the property ladder as they require only 5% deposit.
  • These types of lower deposit mortgages generally have higher interest rates than the lower LTV alternatives.
  • Our tables below allow you to compare 95% LTV mortgages, so you can understand how much you would pay each month and any fees connected to applying for the mortgage.
  • Don't forget the additional upfront costs of buying a home, such as stamp duty and any solicitor's fees.

What does LTV mean?

The LTV (or loan-to-value) refers to the amount of loan you’re looking for in relation to the overall value of your property. The percentage figure is used to reflect the proportion of the property that’s mortgaged and the amount that’s yours (known as your “equity”).

A mortgage at 95% LTV will result in a loan that’s worth 95% of the value of your property – meaning that 95% of the property will be mortgaged, and you’ll have 5% equity.

The LTV also determines the amount of deposit you’ll need. If you applied for a mortgage at 95% LTV, you’d need to put down a 5% deposit, while if you were seeking a mortgage at a lower or higher LTV, the requirements would alter. The LTV you need will ultimately be based on your circumstances, the price of the property, and the amount of deposit you’ve been able to save.

Pros and cons of 95 LTV mortgages

  • Low deposit. You only need a 5% deposit with a 95% LTV mortgage.
  • Potential savings each month. You may find that your monthly mortgage repayments are lower than any amount you could currently be paying for rent. However, you should remember that your total costs with interest over the term of your mortgage may be more expensive.
  • More choice. Lenders are increasingly offering 95% deals to meet first-time buyer mortgage demand.
  • Higher interest rates. Although the rates for 95% mortgages have fallen, they're still higher than the lower LTV alternatives.
  • Strict lending criteria. You'll need to make sure you have reviewed your affordability before applying for this mortgage.
  • Be careful of potential negative equity. If house price conditions change, and values fall, this could result in your house value dropping at a greater rate than you are paying off your mortgage.

Mortgage calculator

Our mortgage calculator helps you to see how much your mortgage might cost you each month.

Our how much can I borrow calculator gives you a range of how much a lender might consider lending you under a mortgage. This calculation is only an indication only.

Read our How much can I borrow for a mortgage guide to find out more about what can impact your potential sum of borrowing.

Moneyfacts tip

Moneyfacts tip Leanne Macardle

You should consider smaller banks and building societies when looking for the best 95% mortgage deals as they may have more competitive rates and offer flexibility with their mortgage underwriting.

At a glance

  • The LTV is the percentage of the mortgage you need to borrow against the total value of the property you are buying.
  • 95% LTV mortgages for first-time buyers can be a useful way to get on the property ladder as they require only 5% deposit.
  • These types of lower deposit mortgages generally have higher interest rates than the lower LTV alternatives.
  • Our tables below allow you to compare 95% LTV mortgages, so you can understand how much you would pay each month and any fees connected to applying for the mortgage.
  • Don't forget the additional upfront costs of buying a home, such as stamp duty and any solicitor's fees.

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