5% Deposit Mortgages
You Can Get a Mortgage With a 5% Deposit
Do You Qualify?
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Limited Equity or a Small Deposit? Let us Find You a Mortgage
Buying a house is tough. It can be easier if you’re moving home and have significant equity in your house, but if you don’t you can struggle to find a mortgage. It’s the same if you’re buying your first home and haven’t been able to save up much of a deposit. At Montgomery Financial we understand that there are many reasons why you may need to borrow more, and that’s why we’re happy to able to help our customers find 95% mortgages.
We’re whole-of-market brokers with access to a wide range of 95% mortgage deals from both specialist and high street lenders. With our help you can get a great 95% mortgage product without having to pay excessively high interest rates. Why ever you need to borrow more, we can help.
Why Use Us?
1. We’re mortgage specialists
We’ll act as your personal guide through every twist and turn of the mortgage maze. From your very first affordability check to picking up the keys, we’ll be with you on your journey to homeownership, every step of the way.
2. Access to the right lenders
With a 60 second affordability check, and access to more than 100 lenders, we uncover the best deals, from specialist lenders to high-street names. Offering first-time buyers like you the right options.
3. We make mortgages simple for you
We understand first-time buyers. We know the questions that keep you up at night, the forms that make your head spin, and when you just need a friendly expert holding your hand until your mortgage is in place.
Do You Qualify?
95% mortgages explained
Unless you are extremely wealthy, when you buy a home you will need a mortgage loan. The amount of your mortgage is calculated as a percentage of the value of the property you want to buy. This is known as the Loan-to-Value (or LTV). Most standard mortgages have an LTV of around 80% (and generally 90% at most). For example, you might see a property you like for £250, 000 with an 80% LTV mortgage you will borrow £200,000. To complete the sale, you will need to pay the remaining 20% – £50,000 – upfront. This is done by either using the equity in your current home or, for first-time buyers, by paying a deposit.
However, some homebuyers need to borrow more, and this is where 95% LTV mortgages come in. As the name suggests, with this type of mortgage you borrow 95% of the property’s value – in the case above £ 237,500 – only having to pay 5% of the value upfront. This makes home buying more accessible to anyone who has less capital available to them.
We search 1000’s of products to find the best deal for you
95% mortgages for home movers
Low deposit mortgages aren’t just for first-time buyers. When you move home you generally use the equity in your home in a similar way to how first-time buyers use a deposit, to reduce the amount you need to repay through a mortgage. However, if you have limited equity you may face similar challenges to first-time buyers.
Equity is just the difference between the value of your home and the amount you owe your current lender. Your equity could be limited for a few reasons, maybe the property market is in a dip or maybe you are moving sooner than you expected and simply haven’t had more time to build equity. Whatever the reason a 95% mortgage, which remember lets you borrow a higher proportion of the value of your new home, could help you.
5% deposit mortgages for first-time buyers
As a first-time buyer you may face some specific problems. With no mortgage history it can be tricky to show that you will reliably meet your monthly repayments. You may also be younger than other home buyers, meaning that you’ve had less time to build a credit history. The biggest barrier is often that you have been unable to save enough for a deposit, particularly if you are paying rent every month. The frustrating thing is you probably know that a mortgage would cost you less than rent, if only you could find one. You could find one with a 95% mortgage.
These can provide a vital stepping stone for first time buyers who have managed to save something toward their first home, just not enough for a traditional mortgage. Montgomery Financial are the experts in finding mortgages for first-time buyers. We can show you how only having a small deposit won’t stop your journey to home ownership.
Get moving with Montgomery Financial
If you can spare 60 seconds you can discover whether you’re eligible for a 95% mortgage. Don’t let limited equity or a small deposit hold you back. With Montgomery Financial less can mean more. Start today.