Mortgages For First Time Buyers With 5% Deposit
You Can Get a First Time Buyer Mortgage With a 5% percent Deposit
Do You Qualify?
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Montgomery Financial has the expertise to find you a 95% mortgage. Don’t believe us? Read our reviews.
Small Deposit? Let us Find You a Mortgage
If you’ve been saving for your first home, you’ll know how tough it is. Even if you can put a little to one side each month, it doesn’t seem enough. You want to act quickly to secure the home of your dreams, but you haven’t quite got all the deposit together. At Montgomery Financial we understand. Luckily, we have access to mortgages that only require a smaller deposit. We’re whole-of-market brokers and can get you a competitive deal on a 95% mortgage, so you can get on the property ladder sooner. A 96% mortgage might also be available to you if you’re moving home, great if you have limited equity in your property.
Why Use Us?
1. We’re first-time buyer 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
When you buy a home, you generally have to pay a deposit. This deposit is calculated as a percentage of the asking price and is generally at least 10%. The remainder of the cost of your property is paid through your mortgage. If you pay a deposit of, for example, 20% you will take out a mortgage loan for the remaining 80%. This mortgage amount is referred to as the Loan-to-Value (or LTV). You might see a property you like for £250, 000: you pay £50, 000 deposit and then get an 80% LTV mortgage for the remaining £200,000.
For many first-time buyers, saving for this level of deposit can be challenging. That’s where 95% mortgages come in. With this type of mortgage your deposit is only 5% of the value of the property – so for a home valued at £250,000 you only need to find £12,500. This can be much more manageable and can mean that you are able to get on to the housing ladder sooner than with other types of mortgages.
We search 1000’s of products to find the best deal for 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 demonstrate 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.
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.
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 that small deposit hold you back. With Montgomery Financial less can mean more. Start today.