A 95% mortgage, or also known as a 95% LTV Mortgage to some people, is a type of mortgage to purchase a property with a small deposit, such as a 5% deposit to be exact. However, your deposit is the amount of money that you need to put into the mortgage to make up 100% of the final purchase price.
Chancellor, Rishi Sunak mentioned in the budget briefing earlier this month that Santander, Barclays, HSBC, and Halifax would offer the mortgages ‘from next month’, while Virgin Money would follow shortly afterwards. However, Highstreet bank NatWest will not follow and offer these types of mortgages. The company mentioned on their website that:
The amount of deposit that homebuyers can put down for a mortgage becomes the equity that you have in the property once you’ve paid for it. Therefore, the more equity you have in the property, the more likely you are to be able to repay your mortgage in full if your property loses value. NatWest have recently confirmed that they can only offer mortgages up to a maximum of 90% LTV.
Hey First-Time Buyers, we know it can be pretty daunting when you are looking to buy your first home. There are lots of things to think about and consider, and that’s a scary thought. But don’t worry, you can call or email Stephen Kerrigan, Mortgage Advisor at any time – he will lead you on the right path to buying your own home.