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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
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Total Repayable Over years
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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

Nationwide 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
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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
Payment Holidays
Draw Down
Lump Sum

Incentives

Revert Rate

Clydesdale Bank 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

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

Loughborough BS Logo
Rate
%
APRC
Product Fees
Initial Monthly Payment
Total Repayable Over years
Speak To A Broker
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

Teachers BS Logo
Rate
%
APRC
Product Fees
Initial Monthly Payment
Total Repayable Over years
Speak To A Broker
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

Marsden BS Logo
Rate
%
APRC
Product Fees
Initial Monthly Payment
Total Repayable Over years
Speak To A Broker
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

Newcastle BS Logo
Rate
%
APRC
Product Fees
Initial Monthly Payment
Total Repayable Over years
Speak To A Broker
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

Monmouthshire BS Logo
Rate
%
APRC
Product Fees
Initial Monthly Payment
Total Repayable Over years
Speak To A Broker
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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Still not sure?

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95% LTV mortgage

Leanne Macardle

Leanne Macardle

Editor
Published: 29/01/2019

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

  • 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.

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.

keys in door lock

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.
Best 95% LTV mortgages
Provider Rate APRC Max LTV
Loughborough BS Logo Loughborough BS Discounted Variable 1.99% 4.9% 95%
Teachers BS Logo Teachers BS Discounted Variable 2.49% 4.9% 95%
Marsden BS Logo Marsden BS Discounted Variable 2.54% 5.6% 95%
Newcastle BS Logo Newcastle BS Variable 2.54% 5.4% 95%

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