Are there any 95 percent mortgages

This is because you may not have built up enough equity or paid off enough of the mortgage to be able to get a newer, better mortgage deal. The key advantage is that it requires a small deposit. Some of these include:. Money Compare content is hosted by Which? Limited on behalf of Which?

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Continue reading. The Escapist. The Reveller. The Optimist. ES Best. ES Mag. Follow us:. Password Please enter a valid password. It helped , buyers onto the property ladder.

Below is a live table of the kinds of mortgage deals that are on the market right now. Enter the cost of the property value you are looking at and how much of that sum you need to borrow. This will automatically populate the loan to value box. You will then be shown relevant mortgage deals based on your entered criteria, for example a two-year fix, at that loan to value. However, those in line to benefit most are likely to be first-time buyers who have not benefitted from house price inflation.

While the government said the scheme could apply to both new-build and existing homes, lenders are implementing their own restrictions around this — more details below. You do not need to specifically ask for a deal under the scheme. Lenders offering deals under the Mortgage Guarantee Scheme are applying their own caveats — the main one being that new-build properties will not qualify.

Another caveat is maximum loan size. Virgin Money restricts lending on flats and maisonettes to buildings of four storeys or fewer, and does not lend on ex-local authority blocks. Restrictions like these vary by lender, so be sure to check the small print and seek advice from an independent mortgage broker, should you need it. You can either apply directly to a lender once you have found the deal you want, or you can seek the advice of a mortgage broker. This applies whether or not a deal is part of the Mortgage Guarantee Scheme.

Some mortgage brokers provide a free service to customers and take their fee from lenders. Others may charge a fee for their service. Any high loan-to-value mortgage also leaves you more exposed to the risk of negative equity where you owe more than your property is worth in the event that house prices fall. Critics also claim that the return of high loan-to-value mortgages could trigger artificial house price inflation.

Lenders will usually only lend up to a maximum 4. This file details your personal borrowing history and can be accessed by lenders. It gives them an indication about whether or not you are a safe bet for a loan. You can obtain your report from credit reference agencies like Experian, Equifax and TransUnion — and this can often be done for free. There is no interest to pay on the Government part of the loan for the first five years.