Borrowers looking for the
best 95% LTV mortgage will find more choice from lenders outside of the scheme than those within it. And, the difference in average rates is also close, with products under the MGS averaging a rate of 4.03% compared to 4.07% for those outside of it.
The best interest rate at 95% LTV is not from a lender under the Mortgage Guarantee Scheme, but from Bath Building Society. It offers a discounted variable rate of 3.49% for three years – this is a discount of 1.41% on the Society’s reference rate of 4.90%. The rate is variable so the lender could increase or decrease the reference rate at any time. After the three-year term, the rate increases to 4.90%. This mortgage has a product fee of 0.40% of the amount borrowed (minimum £599) plus £200 and this is available to first-time buyers. Buyers need a minimum income of £20,000 to be eligible for this mortgage.
The best rate for a
fixed rate mortgage at 95% LTV is from Coventry Building Society at 3.59% until 30 June 2023. After this the rate increases to 4.49%. The product fee is £999 and there are free valuation fees up to £670. This mortgage is available to first-time buyers. Those wanting to borrow at least £275,000 could also consider Nationwide Building Society and its 95% fixed rate of 3.49% for two years. After this the rate increases to 3.59%. The product fee is £1,499.
The availability of mortgage deals at 95% LTV is changing daily as lenders launch and close new products due to high levels of borrower demand. We have detailed the changes seen this week.
