Mortgages are secured on your home. You could lose your home if you do not keep up payments on your mortgage.
Mortgages are subject to underwriting and criteria. Minimum age 18, UK residents only.

What is a 95% mortgage?

If you're a first time buyer or a home mover

A 95% mortgage allows you to borrow up to 95% of the value of the property you want to buy, which is helpful if you have a small deposit - a minimum of 5%.

Mortgage loans like this are also called a 95% ‘Loan to Value’ mortgage.

Loan to Value (LTV) means the percentage of the property’s value that is covered by the mortgage.

For example:

You’re buying a property that is £200,000 with a £10,000 deposit.

Your deposit covers 5% of the property price.

The other 95% will be your mortgage.

We call this a 95% LTV mortgage.

The 5% that isn’t covered by the mortgage is yours. This is usually called your equity.

Use our borrowing calculator to find out how much you could borrow. The calculator can also tell you your LTV based on your deposit amount and the property's purchase price.

If you want to remortgage

If you're thinking of changing lender, a 95% mortgage with us could let you remortgage up to 95% of the value of your home.

You could remortgage up to 95% as long as you don't want to borrow more at the same time, have any unsecured debts, and are not still paying off a second charge mortgage. If any of these apply to you, the most you can remortgage up to is 90%. This is subject to affordability checks and if you are eligible.

Find out more about remortgaging and our rates on our remortgage to Nationwide page.

Buying your first home? Find out all you need to know

Find out what happens when you are a first time buyer. We have a helpful guide explaining the process, including how to get your finances ready for a mortgage.

The benefits of a 95% mortgage

  1. Borrow up to £500,000 

    You could borrow up to £500,000 on your mortgage amount. Subject to eligibility and affordability checks.

  2. You could own a property sooner

    For first time buyers, a 95% mortgage means you could own a property sooner than saving up for a larger deposit. Subject to eligibility and affordability checks.

  1. £500 cashback when you complete on your mortgage for first time buyers

    Only one £500 cashback will be paid per mortgage and is payable within one month of completion. If applying jointly, all applicants need to be first time buyers (we see first time buyers as customers who have not had a mortgage in the last 3 years). 

  2. Fixed and tracker rate deals from 2 to 10 years, with and without product fees

    Our 95% mortgage deals include a fixed rate from 2 to 10 years. Use our rates checker to compare deals with and without a product fee.

Is a 95% mortgage right for me?

There may be some, or all features of a 95% mortgage that might not be right for your circumstances. Such as:

  • Your monthly mortgage payments will be higher on a 95% mortgage, compared to a mortgage with a lower LTV.
  • There will not be as many competitive mortgage deals with a lower interest rate on 95% mortgage.
  • You need to consider the risk of borrowing with a higher LTV. If the value of your property falls below your mortgage loan amount, you may have difficulties in repaying the mortgage if you decide to sell or remortgage the property. This situation is known as negative equity.

Am I eligible for a 95% mortgage?

You need to:

  • be a UK resident
  • be aged 18 or over
  • have a minimum deposit of 5% if you’re buying a home
  • be buying a pre-owned property (not available on new build properties unless you use Deposit Unlock).

You cannot be:

  • buying a pre-owned flat with a lease term shorter than 90 years
  • buying a new build home
  • buying a property with the Shared Ownership scheme
  • buying a Restricted Resale Price property
  • borrowing more if you’re remortgaging.

If you are not eligible there may be other ways to help you buy a property. For example, Deposit Unlock for new build homes, or affordable home schemes.

How do I apply for a 95% mortgage? 

Use our borrowing calculator and rates checker to see how much your mortgage might be.

If you're a first time buyer or a home mover and comfortable with your potential rate and payments, start your application by getting a Decision in Principle.

Or if you want to change lender to us, start your remortgage application.

Find out how much you could borrow

Use our mortgage calculator to find out how much you could borrow.

Mortgage rates

Compare mortgage deals and find out what your interest rate and monthly payments could be.

Get a Decision in Principle

If you're a first time buyer or a home mover, you need a Decision in Principle before you can apply for a mortgage. It will tell you what we are prepared to lend, but is not a formal offer.

95% mortgages FAQs

The other costs of buying a home

Although a 95% mortgage has the advantage of a smaller deposit, there are extra costs that come with buying a property.

Some of these costs you need to pay upfront before your application is complete, which means needing more than just your deposit. The extra costs can include:

  • Product fees
  • Legal fees
  • Valuation and survey fees
  • Stamp duty
  • Removal costs

You can find a guide to the cost of buying a house on the MoneyHelper website. It can give you an idea of how much your extra costs might be.

Other ways we can help you buy a home

  1. Deposit Unlock

    Buy a new build home from participating home builders with just a 5% deposit.

    Find out about Deposit Unlock
  2. Helping Hand Mortgage

    With Helping Hand you could borrow up to 20% more.

    Find out about Helping Hand mortgage
  3. Affordable home schemes

    Use one of the schemes available to help you buy a home.

    Find out what schemes are available