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Why Choose Us

0 %
5-star reviews on Google
years we have been as independent mortgage and protection brokers
0 %
customer satisfaction for finding the best deals on the UK market
£ 0
total donated to various charities

Why Choose Ascot Mortgages

0 %
5-star reviews on Google
£ 0
total donated to various charities
years we have been as independent mortgage and protection brokers
0 %
customer satisfaction for finding the best deals on the UK market

In the ever-evolving landscape of the UK mortgage market, 95% mortgages have become a prominent fixture, providing prospective homebuyers with the opportunity to step onto the property ladder with just a 5% deposit. With money being a crucial factor, in this guide, we will delve deep into the nuances of 95% mortgages, exploring its advantages, disadvantages, and how to select the right deal that suits your financial standing and home-owning aspirations.

What Our Clients Say About Us

5.0 Based on 122 reviews from review us onLucy B. ★★★★★ Having Phil as my mortgage advisor was great from the very start! He is down to earth and speaking to him was always a pleasure. The kindness, compassion and support I have been given all the way through what can be a stressful process was immeasurable. Phil and Jardelle worked as a solid team and was able to make me feel at ease all the way through buying my first home. The team were always available and the communication between everyone was always clear and I felt safe in the hands of the company as a whole. Thank you for helping me buy my first home!Flora R. ★★★★★ I worked with Richard (Protection Adviser) for a couple of days to sort out life and critical illness insurance. Absolutely brilliant, he found me and my husband the perfect policy. Very knowledgeable and easy to get on, he definetely makes things easy to understand. Thank you for the great service provided.Matthew R. ★★★★★ I've dealt with Phil at Ascot Mortgages for a while now and Phil always comes back back to me with the right plan.Keep the good work up!rafal W. ★★★★★ I would thoroughly recommend Phil Greenwood at Ascot Mortgages ltd to anyone looking to seek advice on purchasing a home.Phil was absolutely fantastic. He made the process very smooth and easy and was always there to answer any questions I had.Shahid L. ★★★★★ This company has been truly amazing in constantly giving me the support and help i need for my mortgage and for their continuous work ethic guiding customers like myself and educating them into making the best possible decisions. My special mention goes to Phil Greenwood who deserves every single credit for his brilliant work and communication skills. The more I got to work with Phil, the more he gained my respect as he is a hugely likeable man and possibly the best mortgage advisor yet. Even after I finished my time with Ascot Mortgages, I will never lose my trust in the company and I hope they exceed their business and gain even more success and popularity.Best wishes,Shahid Latif and familyPretty L. ★★★★★ Phil helped me renew my mortgage. He was great at keeping me updated with any rate changes and secured a lower rate than at the time my mortgage went through. Thank you Ascot for your supportNikki E. ★★★★★ Huge thanks to Richard Johnson for sorting out all of my insurance policies! I had accumulated a variety of life cover and various other policies over the years that all needed a good review and refresh. Richard was extremely patient and helped me to remove the duplication and choose the best cover to suit our current needs. I have used Ascot Mortgages for over 12 years and have met several members of the team, always finding the right help and support to work through what can be a complicated and stressful time. Thanks again, Richard!Aamir R. ★★★★★ As first time buyers we had very little understanding of how to go about applying for a mortgage. Phil was so helpful in cutting through all of the formalities and helping us to decide which mortgage would be best for us also ensured we collated all the details needed and kept us up to date on progress. The process of finding the right house was very stressful but the process of choosing and applying for the mortgage and life cover has been so straight forward that, at times, we were worried it was all a bit too smooth! Thank you for guiding us through this so professionally and with real understanding and personality.Andrew T. ★★★★★ Working with Richard at Ascot has been a great experience. He listened to us and was very professional throughout. This was our first experience with Richard but we've been using Ascot now for 6-7 years. Thank you all at AscotAngie B. ★★★★★ Always give a great service and find you a mortgage in a timely fashion.Alison is awesomeAndrew M. ★★★★★ We have used Ascot Mortgages for over 5 years now and have had excellent service throughout, primarily with Alison and Kevin. Our latest dealings have been with Richard Johnson who although new to us (and to Ascot I believe) has once again provided the 5 star level of service we have come to expect. His product knowledge is excellent offering a range of options supported with consistent communication and updates, always available on the phone or on email every step of the way.Ali H ★★★★★ Excellent service, a big thanks to Natalia Barry for her excellent support with my buy to let mortgage application, Natalia was professional, transparent, and kept me informed during all the process, and thanks to Jason jones for his assistance and support.david R. ★★★★★ I have dealt with Ascot for many years now and will always go back, recently had all my insurances re done by Richard Johnston at the firm, excellent service, communication and swift actions by Richard. Great deals on all three insurances and would recommend anybody to go to Richard for help. Thanks Richard 👍Eve Alexandra C. ★★★★★ We used Ascot Mortgages to purchase a home as first time buyers, Ellie assisted us with this and went above and beyond to ensure everything went smoothly, all questions were answered, and any queries were solved.As first time buyers, myself and my partner were quite nervous and clueless as to what to expect when getting a mortgage and what not, and Ellie made this so simple and explained everything in a way that we thoroughly understood what was happening with our house buying journey, without it being pure jargon.I can't thank Ellie enough, she truly has been a star during the whole experience and is an asset to Ascot Mortgages.She is someone who I would definitely recommend to friends and family if the opportunity arises, and has made this whole experience a very stress free and exciting one!Thank you for everything Ellie!Emma W. ★★★★★ Alison helped me to get the right mortgage for my current situation and was very supportivehelen L. ★★★★★ Phil Greenwood dealt with my recent remortgage, he made sure I had the best product to fit our HMO criteria. Then chased solicitors for me and made sure I completed around the date I wanted to avoid my ridiculous rate I was about to be switched to. Thanks Phil, great job! Ready for my next mortgage now so I will be coming back 🙂Mark C ★★★★★ Excellent service from an excellent representative. Very professional and helpful company. Thank you for all your helpDamian L. ★★★★★ I recently purchased a buy-to-let from Auction and Ascot Mortgages, in tandem with Ascot Bridging Finance, supported me through the whole process. Once the property purchase via a bridging loan was complete, Ascot Mortgages worked out the best options for me, despite the Banks rising interest rates and spiralling UK inflation and managed to secure me a competitive mortgage rate for that property. I wouldn't hesitate in going back to Ascot Mortgages in the future and look forward to working with them again in the near future. Thank you for everything you've doneJuliet B. ★★★★★ Thank you to Alison for helping us and sorting out our mortgage. Swift, reliable and very helpful. Very much appreciated. God bless you abundantly 👍👌🤝gareth P. ★★★★★ Been with Alison and team for more than 25 years. Needless to say, very happy...Jo T. ★★★★★ We have been using Ascot Mortgages for the last few years and they have done 11 buy to let products for us.We have found Alison, Phil, Jason, Jardelle and the team to be excellent at finding the best product for us and to work at pace when we are buying from auction and have a deadline to meet.Communication is very good and nothing is too much troubleBen H. ★★★★★ I can't recommend Ascot Mortgages highly enough.We have used them for all of our Mortgages . They are professional and friendly and have walked us through all our options, they always have the time to talk to you and go the extra mile to get you the best deal. It wont be long till I'm calling on their services again, I wouldn't go anywhere else.If you want a mortgage, there's only one place to go!Dog J. ★★★★★ Ascot went the extra mile to help me acquire a mortgage. With the help of Jason and Ellie I was able to get a competitive rate after 3 other firms had told me they couldn't help me. Great levels of communication throughout, I would highly recommend!Ursula B. ★★★★★ Alison was very friendly and professional in securing the right bridging for us and at a very competative price. This ensured that we were able to place an immediate offer and not miss out on our forever home. Later her help and support in finally getting our completion over the line was nothing short of a miracle. I would strongly recommend both Alison and the team at Ascot Mortgages.primrose C. ★★★★★ ALISON IS BY FAR THE BEST IN THE GAME. ALL WE CAN SAY IS THANK YOU SO MUCH. They are passionate on customer service, even in my frustrated time Alison, Jadelle, Ellie I could name them all. May the good LORD BLESS YOU.js_loader

Written by:

Alison Gibson

Ascot Mortgage Expert

Last Updated:


Written by:

Alison Gibson

Ascot Mortgage Expert

Last Updated:


What are 95% Mortgages?

At its core, a 95% mortgage refers to a loan arrangement where you borrow 95% of the property’s price and pay a deposit of 5%. The ltv or loan-to-value percentage stands at 95%, meaning the lender fronts a substantial portion of the house price, leveraging a higher percentage of the property value compared to other mortgage types. Here, financial institutions play a vital role in making home ownership possible with less money down. Let us break down the fundamental components of a 95% mortgage:

  1. Loan-to-Value (LTV): The LTV represents the percentage of the property’s value that you are borrowing. A 95% LTV mortgage translates to a loan covering 95% of the home’s value, with the buyer responsible for the remaining 5%.
  1. Deposit: The deposit in a 95% mortgage is typically 5%. This initial pay functions as your equity in the property and represents the initial money you invest in your home.
  1. Interest Rate: The interest rate is a crucial factor, influencing your monthly repayment sums. Generally, 95% mortgages come with a higher interest rate compared to mortgages with a lower LTV ratio.
  1. Monthly Repayments: These are the repayment amounts you pay on a monthly basis to the lender, encompassing the loan principal and interest.
  1. Mortgage Term: It is the period over which you will repay the loan. Extended terms may offer lower monthly repayments, but accumulate more interest over time.

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Should you continue to save for a larger deposit than 5%?

Before committing to a 5% deposit scheme, it’s important to weigh the pros and cons. Saving more money for a larger deposit could offer a range of benefits, including:

  1. Lower Interest Rates: Banks often offer lower interest rates to individuals with a larger deposit, translating to lower monthly repayments.
  1. Access to Better Deals: A higher deposit can unlock better mortgage deals with more favourable terms.
  1. Reduced Risk of Negative Equity: The risk of falling into negative equity is reduced, as a larger deposit provides a buffer against fluctuations in property prices.

However, saving a more considerable sum demands time and patience, potentially delaying your plans to buy a home. Moreover, rising house prices could outpace your saving rate, an aspect worth considering in your decision-making process.

Can you get a 95% mortgage?

Securing a 95% mortgage is indeed possible, especially with the introduction of the government-backed 95% mortgage guarantee scheme. However, eligibility hinges on a variety of factors, such as:

  1. Credit Score: Your credit score is a pivotal element, with a good credit history increasing the likelihood of securing a loan.
  1. Affordability: Lenders assess your income and expenditure to determine how much you can afford to borrow.
  1. Employment Status: Stable employment can enhance your chances, as lenders favor applicants with a steady income.
  1. Debt Level: Existing debts can impinge on your borrowing capacity; therefore, keeping debts minimal is advised.
  1. Property Type: The type of property you aim to buy can influence the lender’s decision.

It is advisable to consult with a mortgage advisor to navigate the intricacies and secure a suitable deal.

What are the advantages of 95% Mortgages?

Opting for a 95% mortgage comes with an array of advantages:

  1. Lower Upfront Costs: The chief benefit is the reduced initial cost, facilitating home ownership with just a 5% deposit.
  1. Accessibility: 95 mortgages for first-time buyers offer an accessible pathway to enter the property market.
  1. Capital Appreciation: With a foothold in the property market, you stand to benefit from potential capital appreciation.
  1. Early Home Ownership: The lower deposit requirement means you can buy a home sooner than later, potentially in a preferred location.
  1. Guarantee Scheme: The government’s guarantee scheme offers a safety net to lenders, encouraging them to offer 95% mortgages.

What are the disadvantages of 95% Mortgages?

However, the 95% mortgage option is not devoid of drawbacks:

  1. Higher Interest Rates: The interest rate tends to be higher, leading to increased monthly repayments.
  1. Risk of Negative Equity: With a smaller deposit, you face a higher risk of negative equity, particularly if house prices decline.
  1. Limited Property Choices: You may find your choices somewhat limited, as not all properties qualify for a 95% ltv mortgage.
  1. Stricter Criteria: Lenders may impose stringent criteria, scrutinizing your credit history and financial stability meticulously.
  1. More Expensive in the Long Run: The cumulative interest over the loan term can make this option more costly over time.

Alison Gibson

Ascot Mortgage Expert


Remortgaging is applied when you keep

living in your present property while applying for another mortgage deal with a new lender. Before finding out how to remortgage and get the best offers from experts like Ascot Mortgages, you have to check meeting what parameters of the deal that can help you succeed the most. The range of background factors varies a lot — from the recently changed loan-to-value ratio or your existing agreement coming to an end.

Whether you are trying to get a more beneficial deal or searching for funding to improve your home conditions, remortgaging is one of the most advantageous scenarios to consider.

How does the 95% Mortgage Guarantee Scheme Work?

In a bid to stimulate the property market, the UK government introduced the 95% mortgage guarantee scheme. Under this scheme:

  1. Government’s Role: The government offers a guarantee to lenders, covering a portion of the losses if the borrower defaults, thus safeguarding the lender’s money.
  2. Eligibility: The scheme is designed for property purchases up to £600,000, aiming to assist a broad demographic, including 95 mortgages for first-time buyers, and making it easier for more people to invest money in property.
  3. Lender Participation: Various lenders participate in the scheme, availing 95% mortgages to potential homebuyers and providing more opportunities for people to borrow money for home purchases.
  4. Positive Impact on Property Market: The scheme has rejuvenated the property market, fostering more transactions and buoyancy in property prices.
  5. Duration: The guarantee scheme has a predetermined lifespan, so it’s imperative to check its availability and the latest updates when planning your purchase.

Choosing the Right 95% Mortgage

Selecting the right 95% mortgage requires a meticulous approach. Here, we lay down a roadmap to help you make an informed decision:

  1. Research: Start with comprehensive research to understand the different offers available in the market, including interest rates and repayment terms.
  2. Professional Advice: Seek advice from a professional mortgage advisor to align your choices with your financial reality.
  3. Budgeting: Craft a realistic budget that encompasses all costs involved, including deposit, monthly repayments, and other associated fees.
  4. Credit Score: Work on enhancing your credit score to augment your chances of securing a favorable deal.
  5. Comparing Deals: Use mortgage comparison tools to evaluate various deals, considering the interest rate, repayment terms, and potential monthly outlays.
  6. Emergency Fund: Establish an emergency fund to cushion yourself against unforeseen circumstances and ensure smooth repayment.

In conclusion, 95% mortgages offer a viable route to home ownership, particularly benefiting first-time buyers. While it comes with its set of pros and cons, making an informed decision guided by professional advice can pave the way for a successful home purchase. Engaging with a mortgage advisor with a robust understanding of the UK market dynamics can be your first step towards securing your dream home through a 95% ltv mortgage.

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Yes, it’s possible to use a 5% deposit mortgage for remortgaging or refinancing, but it largely depends on the equity you have in your property. If your property has appreciated in value or you’ve significantly reduced the outstanding loan balance, you could be in a position to remortgage with a 95% LTV. However, it’s essential to consider any early repayment charges or fees with your current mortgage and the benefits of switching.

A 95% LTV mortgage means you’re only putting down a 5% deposit and borrowing 95% of the property’s value. This often results in:

– Higher Interest Rates: Generally, higher LTVs like 95% may come with higher interest rates compared to lower LTVs, which can lead to higher monthly payments.
– Larger Loan Amount: As you’re borrowing a significant portion of the property’s value, your monthly repayments will be based on this higher amount.

It’s always advisable to review and compare mortgage offers to determine the monthly costs and overall affordability.

The deposit size itself, be it 5% or otherwise, doesn’t have direct tax implications. However, if this is a second property, you’ll be subject to an additional 3% Stamp Duty Land Tax (SDLT) on top of the standard rates. If you’re buying a home in Scotland or Wales, the tax rules differ with the Land and Buildings Transaction Tax (LBTT) and Land Transaction Tax (LTT) respectively. Always consult with a tax advisor or solicitor to understand any potential tax obligations.

If the property value decreases after you’ve secured a 95% mortgage, you could find yourself in negative equity. This means you owe more on the mortgage than the property is currently worth. It can pose challenges if you wish to move home or remortgage, as selling the property wouldn’t cover the full mortgage amount. In such situations, it’s crucial to speak with your mortgage lender or a mortgage advisor to discuss the best course of action, which might include staying put until property values recover or making overpayments to reduce the mortgage balance.

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