The best 95% loan-to-value mortgages in May 2021 | will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by will always be from Be Scamsmart.

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Michelle Monck

Michelle Monck

Consumer Finance Expert
Published: 26/05/2021
May 2021 has seen a surge in the number of 95% loan-to-value (LTV) mortgages available. Our latest data (to May 25 2021) shows 174 mortgages are now available at 95% LTV. The growth of product availability followed the launch of the new Mortgage Guarantee Scheme (MGS) and there are now 49 mortgages available under the scheme. Lenders offering 95% LTV mortgages under the scheme include:
  • Barclays Mortgage
  • Halifax
  • Lloyds Bank
  • HSBC
  • Royal Bank of Scotland and NatWest
  • Santander
  • Virgin Money


Where to find the best interest rates at 95% LTV

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. 


New 95% LTV deals launched this week or reduced in rate:

Coventry Building Society reduced the rate on its five-year fixed rate 95% LTV mortgages to 3.79% and 3.99% until 30 June 2026. It also launched a new two-year fixed rate mortgage at 3.59% until 30 June 2023 with a fee of £999. Both mortgages revert to a rate of 4.49% variable after the fixed rate terms.

Dudley Building Society removed the locals only restriction on their five-year fixed rate 95% LTV mortgage at 3.99% reverting to 4.99% variable after the fixed term. There is no product fee for this mortgage.
Cumberland Building Society reduced the rate on its 95% LTV mortgage to 3.99%. The fixed term lasts until 1 July 2023, then reverts to 4.09%. There is a fee of £999 and an incentive of a free valuation.

Leeds Building Society reduced its five-year fixed rates by up to 0.10%, and now offers a fixed rate of 3.90% & 3.99% respectively. The former has a £499 fee while the latter is fee free. Both deals come with the incentive of a free valuation and revert to 5.29% at the end of the fixed term.

95% LTV deals closed this week:

Hanley Economic Building Society withdrew its 95% LTV deal this week.

Do you need a mortgage broker when looking for a 95% mortgage?

A mortgage broker should be up to date with the changing market and this could help borrowers to secure a deal before a mortgage lender closes its lending at 95% LTV. Our preferred mortgage broker is Mortgage Advice Bureau, you can request a call back or call them on 0808 149 9177.


Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.

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