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How to get 95 LTV mortgages

The days of 100% mortgages is gone for the foreseeable future. If you're looking to get a foot on the property ladder or refinance with little equity, 95 LTV mortgages are likely to be your best option. You can calculate how much equity you have in your home by finding out your home's value and deducting any loans that are secured against it. For example, if your home is worth £100,000 and you have a £94,000 mortgage, your LTV is 94%. Under the T&C's of the loan, you be able to qualify for a 95 mortgage deal.

It's become a lot harder to find low equity mortgage deals in recent years because property prices have fallen sharply. This means that the lender is more exposed to risk if you default on the terms of the agreement. Not surprisingly, the less equity you have, the higher the cost of borrowing. You'll also find that the banks have made it harder for people to qualify for this type of deal.

The key to getting approval for a 95 home mortgage is a stable full-time job and a good credit rating. If you're in temporary work or still in your probationary period, you're not going to get approval. Wait until you've found a permanent job. Your credit rating not only affects the cost of borrowing, it affects the outcome of your application. Unless you have a very good credit score, you're not going to be able to get a mortgage without at least 25% equity. Check your credit score before you apply.

95 LTV Mortgage Deals:

  • Lloyds TSB 3yr 3.84% Fixed FTB LTV 95% Lend a Hand Branch Mortgage.
  • Market Harborough Building Society Term 1.50% Discount Family Deposit Mortgage.
  • Ulster Bank 5yr 0.21% Discount FTB LTV 95% Mortgage

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