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95% ltv mortgage lenders

Written By:
Myles Robinson - Expert Finance Advisor

Posted: Oct 16, 2022

Fact Checked By:
David Nicholson - Finance Editor

95% LTV mortgage lenders in the UK – Who is best and who should you use?

Finding a mortgage is rarely a straightforward process. After deciding on what you can actually afford to pay, you’re faced with the task of finding a mortgage lender who can meet your individual needs.

The following guide will tell you which mortgage lenders are willing to lend to customers with a five percent deposit.

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What Is A 95% LTV mortgage?

Buying a property is far from cheap and very often, due to personal circumstances, people cannot afford to pay a large deposit. This is where a 95 percent LTV mortgage scheme comes in handy, as it’s often seen as a more convenient way to climb up the property ladder.

With a 95 percent loan-to-value mortgage, you’re borrowing 95 percent of the property’s value. The 5 percent that remains comes from your deposit, hence the reason why they’re also referred to as 5 percent deposit mortgages.

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Uses Of A 95% LTV Mortgage

Here are a few ways that people use this type of mortgage:

Buying their home

Nowadays, many first-time buyers simply cannot afford to save money for a small deposit, this is why they find 5 per cent deposit mortgages to be a good option.

One of the most significant drawbacks that people find with this arrangement is that it often means bearing the brunt of higher interest rates.

It’s important to remember that some mortgage lenders won’t accept 5 per cent deposits, as it presents a greater risk to them. So, always verify this before putting in an application.


It’s a relatively common practice for people to remortgage in order to get a 95% LTV mortgage; however, achieving this is not as easy as it may seem.

Lenders generally prefer people to have more equity in their home when they remortgage but, doing a bit of shopping around might get you the deal you’ve been looking for.

Moving to a new home

You can use any equity and additional savings for the deposit on a new home if it adds up to 5 percent of your target property’s value.


Choosing A 95% LTV mortgage

It’s no secret that mortgages in general can be highly complex topics of discussion, so before you go about deciding between the various 95 percent mortgage lenders on the market, you need to understand the types of 95 percent mortgages.

Understanding these options can make your search easier, as you’ll be able to make more informed decisions.

Interest-only mortgage

This type of mortgage will give you cheaper monthly payments but means you owe a larger lump sum or the amount that you initially borrowed.

With this arrangement, you’ll also have to show the lender that you have an adequate plan to pay off the loan once the mortgage comes to an end.

Repayment mortgage

With repayment mortgages, monthly repayments are also used to pay back the initial amount you borrowed. This differs from an interest-only mortgage as with that scheme, the monthly repayments cover the interest charged on the loan.

Variable-rate mortgage

As the name implies, with variable-rate mortgages, lenders can choose to lower or raise the rate of a mortgage whenever they see fit.

After your fixed, discounted, or tracker rate mortgage comes to an end, you’ll typically be moved to a lender’s standard variable rate which is usually based on the Bank of England base rate.

Discounted rate mortgage

This is an interest rate that is set below the standard variable rate of a lender. The discounted rate will typically be for a short period of two to three years.

Fixed Rate Mortgage

Fixed-rate mortgages have interest rates that stay the same throughout a specified period. This option is particularly useful for those with a tight budget, as it allows for easier budgeting.

Tracker mortgage

With tracker mortgages, your interest rate will fluctuate according to the Bank of England base rate. This means that you’ll benefit if there’s a fall in the base rate but could pay more if it rises.

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The Mortgage Lenders That Offer 95% LTV Mortgages

Since the government introduced the mortgage guarantee scheme, a number of mortgage lenders have been able to offer 95 percent LTV mortgages.

With the mortgage guarantee scheme, mortgage lenders have the option to buy a guarantee on mortgages in which the borrower has a 5 percent deposit, so they can be compensated should the borrower default.

Luckily for those seeking a 95 percent LTV mortgage, some of the UK’s leading high-street banks offer this arrangement. Some financial service providers offer this under the mortgage guarantee scheme whereas some fall into the category of specialist lenders, here’s a list of both:

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Mortgage guarantee scheme lenders

These are some of the lenders that offer 5 per cent deposit mortgages under the government scheme:

Most of these names don’t need an introduction; however, if you’re not sure about the services they offer or how to approach them, it’s always advisable that you consult a mortgage broker beforehand. Mortgage brokers have the necessary knowledge and expertise to ensure your approach is tactful so that you save money and time.

It’s also worth noting that mortgage guarantee scheme lenders can accept deposits up to 9% of the property’s value. If you’ve been rejected before or if you’re still planning an application, a higher deposit may increase the chances of your application being approved and you landing a more favourable deal.

Additional 95% LTV mortgage providers

Some other lenders have thrown their hats in the 5 percent deposit ring.

Please note that this list is always subject to change and it’s always worth clarifying this with the service provider or a mortgage broker such as Loan Corp before applying.

  • Aldermore – Aldermore had two 95 percent LTV mortgage products on offer. A two-year fix at 5.08 percent and a five-year fix at 5.28 percent. Be sure to verify whether Aldermore or any of the lenders mentioned below still offer the products mentioned.
  • Coventry Building Society – This lender has two 95 percent LTV mortgages with five-year fixes. Their maximum loan of £400,000 and customers can borrow up to four times their earnings. One product has a £999 product fee and the other is fee-free.
  • Bank of Ireland – The Bank of Ireland’s 95 LTV deal involves a two-year fixed rate and no product fee. Their maximum loan size is £500,000 and this offer can only be accessed through mortgage brokers.
  • Accord Mortgages – Accord offers a 95 percent LTV mortgage with a five-year fixed rate. This also includes a £995 fee, complimentary standard valuation, and a maximum loan of £500,000. Be mindful that this is not available for a newly build property, flats, and properties in Northern Ireland. This option is also only accessible via a mortgage broker.
  • Skipton Building Society – Much like Accord, Skipton offers a 95 percent LTV mortgage at a five-year fixed interest rate of 4.17 percent. This is a fee-free product and they also have another product with a similar arrangement but at a slightly higher interest rate.
  • Darlington Building Society – The Darlington Building Society offers a 95 percent LTV package that is exclusive to key workers. It entails a three-year deal at a fixed rate. Other details include a £999 product fee, a £120 completion fee, and a £300 contribution from them towards legal fees.


Compare Mortgage Lenders With Loan Corp

Not knowing much about the property market and mortgages is nothing to be ashamed of, particularly given how complicated both subjects can be. For those who lack knowledge in this area, finding a mortgage lender can be a painstaking task.

This is why Loan Corp has a team of readily available experts who can make the process of finding and buying your dream home much easier.

If you need someone to give you comprehensive guidance on 95 percent LTV mortgages and finding a befitting lender, contact us via our contact page or phone us on 0808 301 9509 alternatively start online below:

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How to tell if a mortgage provider is legitimate?

The easiest way to tell if a mortgage provider is legitimate is by checking the Financial Services Register.

What are equity loans?

An equity loan is a type of loan in which the borrower uses the equity in their home as collateral for the deal. A home equity loan typically comes as a lump sum with a fixed interest rate.

In the case of homes, negative equity occurs when the value of the house falls below the amount of the loan taken out for that house.

What is the base rate?

This is the rate the Bank of England charges banks and lenders in the event of them borrowing money. The base rate affects the interest rates lenders charge for loans, mortgages and any other types of credit they offer their customers.

As of the time of writing this article, the rate is currently at 3% but bear in mind that this rate is always subject to change.

Can I afford a mortgage?

The simple way to determine whether or not you can afford a mortgage is by conducting an extensive assessment of your income and expenses.

Once you’ve determined how much money you have left over, you can compare this amount to how much it will cost you to buy a home. We have this mortgage affordability calculator to give you some guidance to affordability.

Alternatively, you can get in touch with our expert advisors who can give you a more in-depth look into being able to afford a mortgage.

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What is a higher lending charge?

This is a fee that mortgage lenders may charge when the loan-to-value ratio of a mortgage is higher than what they are prepared to accept at standard rates. The higher lending charge can also be worked out a 1.5% of the mortgage.

Such fees illustrate the importance of fully understanding the terms of your mortgage agreement prior to signing on the dotted line.

Can mortgage lenders withdraw?

Mortgage lenders can indeed withdraw mortgage offers under certain circumstances and can even pull out after contract exchanges have taken place.

After receiving a mortgage offer, there will generally be a section highlighting the exact circumstances under which an offer can be withdrawn. Be sure to read through your contract thoroughly.

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