What are 95% mortgages?

Put simply, a 95% mortgage allows you to borrow up to 95% of the value of the property you want to purchase, which is really useful if you are buying your first home.

So with a 95% mortgage the Loan to Value refers to the ratio of how much your mortgage is worth against the value of the property you wish to purchase, shown as a percentage.

For example: if you were buying a property costing £150,000 and putting in a deposit of £7,500, your Loan to Value would be 95% and your deposit would be 5%. You can use our mortgage calculators to work out what your Loan to Value would be and also to find out how much you could borrow for your mortgage.

Circle graphic with text saying total value of property £150,000

5% deposit

(5% of the property value)


The amount being borrowed

(95% of the property value)


Before you apply

First things first, you should refer to our borrowing calculator to get an idea of how much you would be able to borrow taking into consideration your income (and the income of any joint applicant) and your monthly outgoings. When we look at how much we can lend, we base the amount on:

  • Your basic salary
  • Other sources of income (like bonuses or overtime)
  • Any financial commitments (regular outgoings like credit card or loan payments, school fees etc.)

When you have an idea of how much you can borrow, you can also look up potential mortgage repayment amounts with our repayment calculator. By entering your deposit amount and the purchase price of the new property, we’ll show how much your repayments could be (note, this will vary depending on the mortgage deal you eventually choose).

It’s also important that you have a good credit record before applying – you can check this on sites like Equifax or Experian You should also ensure that you are registered on the electoral roll at your current address.
To help you work out what information we require, why not look up our mortgage lending criteria which details how we decide who to lend to.

Is a 95% mortgage right for me?

Many first time buyers are tempted by 95% mortgages, mainly due to the fact that the deposit is smaller, although our 95% mortgages are also available to home movers.

You could borrow between £50,000 and £600,000 (subject to our lending criteria), but it's worth considering that your mortgage repayments on a 95% mortgage may be larger than on a mortgage with a lower loan-to-value.

Depending on your circumstances you may find it more beneficial to wait and save for a larger deposit in order to get a more competitive mortgage deal. The lower the interest rate on your mortgage, the lower your repayments may be.

Check out our mortgage calculators to work out what your mortgage repayments might look like for a 95% mortgage and to find out how much you could borrow.

What about other costs?

You also should consider other mortgage costs that you’ll need to pay in addition to your monthly mortgage repayment and deposit. These costs have to be paid upfront when you apply, although it is possible on some mortgage deals to add the product fee to the cost of your mortgage loan. These costs include:

  • Product fees – this is a fee to secure a certain mortgage deal which can cost up to £995 depending on the deal you choose.
  • Legal fees – you will need to pay a solicitor or licenced conveyancer to cover the legal part of the property purchase and for any searches.
  • Valuation and survey fees – a mortgage valuation is required for any home purchase and there is a fee for this. You may also opt for a survey of the property
  • Stamp duty – this is a government tax paid on property purchases over £125,000.
  • Removal costs – the cost for a professional removal company to move your belongings to the new property. It can be cheaper to do this yourself by hiring a van or asking some friends to help.
Read our full guide to mortgage fees & charges.

Call us or book an appointment

Speak to one of our friendly advisers about your options.

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