Compare our best 95% LTV mortgages

You only need a 5% deposit to get a 95% LTV mortgage. This makes it ideal for first time buyers who often have small deposits. Compare our best 95% LTV mortgages, but be careful of high interest rates. Mortgages with lower LTVs tend to have better rates. Find out more with our guide on how to buy your first home, remortgage or move house with a 95% LTV mortgage.

Mortgage type

Property price

£

Mortgage amount

£

85% LTV

Mortgage term

years

Initial rate type

Deal length

Repayment type

Our best 95% LTV mortgage rates

  • Progressive Building Society 2 Year Variable mortgage

    Initial rate 1.99%. APRC 4.54%. Set-up fees £0
  • Halifax 3 Year Fixed mortgage

    Initial rate 2.29%. APRC 3.7%. Set-up fees £0
  • Virgin Money 3 Year Fixed mortgage

    Initial rate 2.49%. APRC 4.5%. Set-up fees £0
  • Monmouthshire Building Society 2 Year Variable mortgage

    Initial rate 2.49%. APRC 4.9%. Set-up fees £0
  • Teachers Building Society 2 Year Variable mortgage

    Initial rate 2.49%. APRC 5%. Set-up fees £1,098
  • Monmouthshire Building Society 2 Year Fixed mortgage

    Initial rate 2.54%. APRC 4.9%. Set-up fees £0
  • Lloyds Bank 2 Year Fixed mortgage

    Initial rate 2.65%. APRC 4%. Set-up fees £0
  • Furness Building Society 2 Year Variable mortgage

    Initial rate 2.69%. APRC 5.4%. Set-up fees £0
  • Halifax 5 Year Fixed mortgage

    Initial rate 2.69%. APRC 4.3%. Set-up fees £0
  • We've found 518 mortgage deals

    Progressive Building Society

    2 Year Variable

    Initial rate

    1.99%

    APRC

    4.54%

    overall cost for comparison

    Set-up fees

    £0

    Monthly payment

    £804.40

    for 24 months

    Existing savings account customers only

    Progressive Building Society

    2 Year Variable

    Initial rate

    1.99%

    APRC

    4.54%

    overall cost for comparison

    Set-up fees

    £0

    Monthly payment

    £804.40

    for 24 months

    Halifax

    3 Year Fixed

    Initial rate

    2.29%

    until 31-10-2022

    APRC

    3.7%

    overall cost for comparison

    Set-up fees

    £0

    Monthly payment

    £832.42

    for 36 months

    Virgin Money

    3 Year Fixed

    Initial rate

    2.49%

    until 01-11-2022

    APRC

    4.5%

    overall cost for comparison

    Set-up fees

    £0

    Monthly payment

    £851.42

    for 36 months

    Monmouthshire Building Society

    2 Year Variable

    Initial rate

    2.49%

    APRC

    4.9%

    overall cost for comparison

    Set-up fees

    £0

    Monthly payment

    £851.42

    for 24 months

    Teachers Building Society

    2 Year Variable

    Initial rate

    2.49%

    APRC

    5%

    overall cost for comparison

    Set-up fees

    £1,098

    Monthly payment

    £851.42

    for 24 months

    Monmouthshire Building Society

    2 Year Fixed

    Initial rate

    2.54%

    APRC

    4.9%

    overall cost for comparison

    Set-up fees

    £0

    Monthly payment

    £856.20

    for 24 months

    Lloyds Bank

    2 Year Fixed

    Initial rate

    2.65%

    until 31-10-2021

    APRC

    4%

    overall cost for comparison

    Set-up fees

    £0

    Monthly payment

    £866.80

    for 24 months

    Existing current account customers only

    Furness Building Society

    2 Year Variable

    Initial rate

    2.69%

    APRC

    5.4%

    overall cost for comparison

    Set-up fees

    £0

    Monthly payment

    £870.67

    for 24 months

    Halifax

    5 Year Fixed

    Initial rate

    2.69%

    until 31-10-2024

    APRC

    4.3%

    overall cost for comparison

    Set-up fees

    £0

    Monthly payment

    £870.67

    for 60 months

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    Representative example:

    If you borrowed £200,000 payable over 25 years, with an initial fixed-rate for two years at 4.79%, your monthly payments would be £1,144.84 for 24 months. This would then revert to a standard variable rate (SVR) of 4.24% for the remaining 23 years, costing £1,086.24 per month for 276 months. Overall cost for comparison is 4.5% APRC representative. The total amount payable over the full term would be £328,272, including product fee of £995 and interest of £127,277.

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

    What is a 95% LTV mortgage?

    95% loan-to-value (LTV) mortgages are most popular with first-time buyers because they only require a 5% deposit. As the deposit is comparatively small, you can reach your savings target (and so get onto the property ladder) that much sooner. They are also available to those remortgaging or moving house.

    LTV stands for loan-to-value, which relates to the ratio between how much money you need to borrow to buy a property vs. how much it is worth.

    So, a 95% LTV mortgage is where you stump up 5% of the property’s value and borrow the remaining 95%. If you’re buying your first home, the 5% will be in the form of a deposit – a cold, hard chunk of cash, most likely from your savings. If you’re remortgaging or moving house, you can use the equity you have in your property as a deposit.

    For example, if you wanted to buy a £200,000 property, you would need to contribute a deposit (or equity) of £10,000 (5%) for an LTV of 95%. Any less than that, and you would struggle to find a mortgage, although there are some 100% LTV mortgages available.

    Compare our top 95% LTV mortgages
    Mortgage calculator: How much can I borrow?

    How can I buy my first home with a 95% mortgage?

    If you’re a first-time buyer, you may only be able to raise a deposit of 5% – especially if you want to buy in an expensive part of the UK. The interest rates on 95% LTV mortgages might not be as good as 90 and 85%, but competition between lenders is strong enough to keep the rates relatively steadily around the 2.55% mark.

    Another option is to use one of the government’s Help To Buy schemes – often only available to first-time buyers. The Shared Ownership scheme lets you buy a 25 to 75% share of the property to begin with – and then potentially scale up your ownership over time (which you do at the market value at the time, not from the time you first bought it). As you are only buying a portion of the property, you can raise a smaller deposit towards your mortgage.

    Bankrate's Help to Buy guide

    How can I remortgage or move house with a 95% mortgage?

    To be clear, if you have enough money for a bigger deposit, then use it – do not aim simply for a 95% LTV mortgage. The bigger the deposit (or equity), the lower the LTV and the better the mortgage rates.

    If you have a positive equity in your current home – that is, if your home is worth more than what remains of your mortgage – you can use that equity as a deposit for a remortgage in your current property, or a new mortgage for moving house.

    For example, if your current property is valued at £300,000, and you owe £250,000 on your mortgage, you have £50,000 equity, and therefore have a big enough deposit (15%) to remortgage with a lower LTV: 85%. As a result, you unlock a bigger range of mortgages with lower interest rates.

    Check your most recent statement from the lender to find out your principal mortgage debt – or phone and ask. You can find out the rough value of your home by doing some research online, or asking an estate agent for a valuation.

    However, you do not need to put the full equity amount back into the property as a deposit when you come to remortgage or move house. Instead, you can release some of that equity and use that lump sum of cash to renovate.

    Mortgage repayment calculator

    Compare other types of mortgage

    Edited by: Sarah Guershon

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    Last updated: 3 July, 2019

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