95% Mortgages

If you’re a first time buyer and keen to get on the property ladder as soon as possible Newcastle offer a range of  95% mortgages to help you.

What is a 95% mortgage?

A 95% mortgage allows you to borrow up to 95% of the price of your property, the remaining 5% of the property price makes up your deposit.

For example, a 95% mortgage on a property worth £150,000 would require a deposit of £7,500. You may also hear this being described as a 95% LTV mortgage. LTV stands for loan-to-value, and refers to the percentage of the property value that’s covered by the mortgage.

95% mortgages are particularly popular with first time buyers because they make it easier to get on the property ladder sooner

What is the lowest deposit for a mortgage?

In most cases, the lowest deposit you will need to pay for a mortgage is 5% of the property price.

How easy is it to get a 95% mortgage?

Whether you’re eligible for a 95% mortgage or not will depend on a number of factors. Potential lenders will need to ensure that your mortgages is affordable for you and consider your income, your outgoings and your credit score to see what they’re willing to lend you.

It’s important to remember that a smaller deposit may limit the number of mortgages products available to you. Furthermore, a lower deposit can often mean higher interest rates. So be mindful of whether getting on the property ladder sooner is worth the long-term cost of higher repayments.

5% deposits and the Lifetime ISA

If you’re struggling to save more than 5% of the property value for your deposit, we offer a Cash Lifetime ISA to help you get started. Available for 18 to 39 year olds to open, a Lifetime ISA (LISA) enables you to save up to £4,000 tax-free each year, which is topped up by the Government’s 25% bonus, up to your 50th birthday. Your Lifetime ISA must be open for at least 12 months before you can withdraw funds from it to buy your first home.

What’s next?

Using our first time buyer hub, you can find all the information you need to start this new chapter.

If you have any questions about how to get a 95% mortgage, call us on the number below. Whether you’re a new customer or an existing customer, our qualified team of mortgage advisers are always on hand to help and answer any questions you may have.

Your mortgage will be secured on your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

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