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How to get mortgages with a 95 LTV

Since the property market commenced its downward trend, mortgages with a 95 LTV have become increasingly difficult to find. This isn't because the banks don't want to lend you money, they're afraid that you'll go into negative equity and default on the agreement. This is what happened the last time, so financial institutions are being particularly careful this time around.

If you want to get a 95 mortgage, you'll need the right credit profile. If you've defaulted on any of your credit agreements during the last six years, you won't get approval. Customers are expected to have an excellent rating because this category of customer is far more likely to maintain the repayment schedule for the duration of the mortgage agreement. If you have bad credit, you're going to need a 20% to 25% house deposit.

You're also going to need to demonstrate that the monthly repayments are comfortably affordable to you. If you have a well-paid job or a starting out on a professional career, you're the sort of customer that the bank wants. They'll give you a 95 home mortgage because they recognise that you're likely to do lots of other business with them in the future.

Prior to applying for a low equity mortgage, check the requirements of the lender. Each time that you apply for credit, a search is recorded with credit reference agencies. If there are too many searches within a relatively short period of time, this will work against you. Make sure that you're a good fit for the lender before you make the decision to apply for a mortgage loan.

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