95 Percent Mortgages

95% mortgages

		Mortgage Type Fixed: The interest rate is fixed for a certain period – usually 1 to 5 years. Tracker: The interest rate rises and falls with the Bank of England base rate. Standard: The interest rate rises and falls with the provider’s standard interest rate (SVR). Discount: The interest rate rises and falls with the provider’s standard variable rate but is set at a lower discounted rate for certain period. Buy to Let: For landlords purchasing a property for letting.	Initial Rate The introductory rate of interest that you will pay for a certain period of time depending on the mortgage type and term.	Initial Term The length of time that the initial interest rate applies to the mortgage.	Final Rate The interest rate that your mortgage will revert to after any introductory rates have finished.	APR This is the mortgage’s Annual Percentage Rate: the interest rate that you will be charged on your mortgage including all charges such as arrangement fees (also referred to as Cost For Comparison).	Loan to value The percentage of a property’s value for which the mortgage can be used. Example: 75% loan to value = 25% deposit.	Fee to Apply This is the fee that must be paid to the lender when you take out the mortgage. It can be applied to the loan or paid separately.
	NatWest 2yr 5.79% Fxd LTV 100% Direct Ex/B [Show Details]	Fixed	5.79%	31/03/2014	4.00%	4.40%	100%	£499	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Existing Customer: Yes Minimum Deposit: See Lender First time buyer: no Homemover: no Remortgage: no Call Direct 0800 158 2907
	Available for existing NatWest customers only.
	Royal Bank of Scotland 2yr 5.79% Fxd LTV 100% Ex/B Direct [Show Details]	Fixed	5.79%	31/03/2014	4.00%	4.40%	100%	£499	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Existing Customer: Yes Minimum Deposit: See Lender First time buyer: no Homemover: no Remortgage: no Call Direct 0800 068 7678
	Available for existing Royal Bank of Scotland customers only.
	NatWest 2yr 5.95% Fxd LTV 100% Direct Ex/B [Show Details]	Fixed	5.95%	31/03/2014	4.00%	4.50%	100%	£999	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Existing Customer: Yes Minimum Deposit: See Lender First time buyer: no Homemover: no Remortgage: no Call Direct 0800 158 2907
	Available for existing NatWest customers only.
	NatWest 2yr 5.95% Fxd LTV 100% Direct Ex/B Main Bank A/C [Show Details]	Fixed	5.95%	31/03/2014	4.00%	4.40%	100%	No Fee	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Existing Customer: Yes Existing Customer Type: current account Minimum Deposit: See Lender First time buyer: no Homemover: no Remortgage: no Call Direct 0800 158 2907
	Available for existing NatWest customers only.
	Royal Bank of Scotland 2yr 5.95% Fxd LTV 100% Ex/B Direct [Show Details]	Fixed	5.95%	31/03/2014	4.00%	4.50%	100%	£999	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Existing Customer: Yes Minimum Deposit: See Lender First time buyer: no Homemover: no Remortgage: no Call Direct 0800 068 7678
	Available for existing Royal Bank of Scotland customers only.
	Royal Bank of Scotland 2yr 5.95% Fxd LTV 100% Ex/B Main A/C Direct [Show Details]	Fixed	5.95%	31/03/2014	4.00%	4.40%	100%	No Fee	MORE INFO Read this before you proceed. To qualify for this product you need to meet the following criteria. Existing Customer: Yes Minimum Deposit: See Lender First time buyer: no Homemover: no Remortgage: no Call Direct 0800 068 7678
	Available for existing Royal Bank of Scotland customers only.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

95% mortgages explained

Houses rarely come cheap. In fact, trying to find a deposit of 20 per cent or more in order buy one will seem like a mountain to climb for many first time buyers.

And alas! most deals on the mortgage market will demand that and more.

But having come under pressure to help more young people get on to that first rung of the property ladder, the banks have begun to periodically introduce 95 per cent loan-to value ratio (or LTV) offers.

This means you'll need to put up only five per cent of the cost of the house as a deposit upfront. Suddenly, the idea of your own bricks and mortar might not seem so farfetched.

You might face a higher interest rate, since you will be seen to be at a higher risk of defaulting, but when there are so many other costs involved in buying your own home and that six figure salary hasn't yet materialised in your young career, you might consider this to be a price worth paying to get your name on the deeds.

With some 95 per cent mortgages, the bank will offer you the opportunity to use the backing of a guarantor - such as a parent, grandparent or even, in some cases, the government - who will be liable to meet your monthly repayment if you can't. This could also bring your interest rate down a touch.

Read Know Your Money's guide to getting on the property ladder.

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