95% Mortgages

If you have a 5% deposit, then you may be able to get on the property ladder with a 95% mortgage. Find out how this type of mortgage works and if you can apply.

95% mortgages explained

What is a 95% mortgage?

  • A 95% mortgage means that you can borrow up to 95% towards the value of your home. That leaves just 5% for you to contribute as a deposit.
  • Your mortgage would have a 95% LTV, or Loan to Value. Loan to Value is simply the percentage of the property value covered by your mortgage.

Example of a 95% mortgage

  • You want to buy a property worth £150,000.
  • You pay a 5% deposit – worth £7,500 – to purchase the property.
  • Your mortgage can then cover the remaining 95% – £142,500.

Work out what your mortgage may look like

Our mortgage calculator is a quick and easy way to explore your mortgage options. With our tools you can see what size deposit you’ll need, how much you could borrow and more.

Try our mortgage calculators

Who is it helpful for?

95% mortgages can be helpful for first time buyers, and existing homeowners looking to move property. Conditions may apply.

First time buyers

If you’re a first time buyer, this lower deposit mortgage can give you the boost you need to get on the property ladder.

First time buyer options

Home movers

If you’re looking to move house, you may also be able to apply for a 95% mortgage.

Home mover options

Tips and guidance for first time buyers

Looking for support on your first buying journey? Learn the key mortgage terms, tips for saving a deposit and more with our first time buyer guides.

Read our guides for first time buyers.

Why choose a 95% mortgage?

You can get on the property ladder sooner

A 95% mortgage means you only need to put down a minimum of 5% of the total property value as a deposit.

Compared to other mortgage types, you may not need to save as much before you’re able to purchase your first home.

Get a fixed rate for the first few years

You can get a fixed interest rate for the first two to five years of your mortgage. That way, you can get a better idea of how much your mortgage payments may be each month during your agreed term.

Things to consider

While there are some benefits to getting a 95% mortgage, this doesn’t mean it’s right for everyone. Here are some things to factor in before making your decision to apply.

  • As you’ll have a higher Loan to Value (LTV) ratio, you may see higher rates than other mortgage types.
  • This can also mean you’ll have higher monthly payments.
  • If the value of your property decreases, you may be at a higher risk of falling into negative equity. In this case, the amount you owe may end up being more than the value of the property.

Can I get a 95% mortgage?

We support the government’s mortgage guarantee scheme. This means you can get a 95% mortgage whether you’re a first time buyer or you already own a property.

The home you want to buy must:

  • include a deposit of at least 5%, and less than 10%
  • be your only residence – and not a Buy to Let property
  • be worth a maximum of £600,000 – with a maximum loan of £570,000
  • be a repayment mortgage
  • not use any home buying schemes, such as shared ownership or Right to Buy
  • not be a new build flat – though new build houses and bungalows are acceptable
  • not be a remortgage application.

You’ll also need to meet the eligibility criteria, which we check during the application process. This can include checks on your income and any outgoings, plus a credit check

 

How to apply for a 95% mortgage

Looking to apply? Follow these three simple steps to apply for a Lloyds Bank mortgage. Or, see our guide to applying for a mortgage.

Agreement in Principle

An Agreement in Principle (AIP) could confirm how much you can borrow subject to a full mortgage application when buying a property.

You may need an AIP before you start viewing properties, to let you know what’s in your price range.

Make an offer on a home

With your AIP in place, you can start looking for a property. Search online or in estate agents, book a few viewings and find your new home.

Once you’ve landed on a property, it’s time to make an offer.

Apply for your mortgage

Once you have your AIP and the your offer on your new home accepted, you can then apply for your mortgage.

We’ll guide you through the process from start to finish.

You could lose your home if you don’t keep up your mortgage repayments

Frequently asked questions

  • We offer 95% mortgages on properties worth up to £600,000 under the government’s mortgage guarantee scheme. This means you may be able to borrow up to £570,000 with a 5% mortgage deposit.

    As a responsible lender, we make mortgage offers tailored to you, based on various factors. This includes your credit score, affordability assessment and sometimes the energy efficiency of your property.

  • You can get a 5% deposit mortgage on most types of properties with Lloyds Bank. This excludes new build flats and some other property types. The property must also be your only residence and must not fall under shared ownership, shared equity, right to buy or buy to let.

You might also like

More mortgage options

See some of our other mortgage options.

First time buyers.

Moving home.

Fixed rate mortgage.

Want to learn more?

Get to know how mortgages work with our guides.

What is a mortgage deposit?

How to save for a mortgage.

How much can you borrow on a mortgage.

Mortgages help and guidance

Need to speak with someone?

Chat to us over the phone or use our mortgage video service to speak face to face from the comfort of your home.

Contact us