First-time buyers rejoice – 95% mortgages are surging


Find out the best rates and deals if you have a small house deposit

Mortgages for people with small deposits are surging at the moment, with almost 300 products to choose from – the highest number for this time of year since the 2008 financial crisis. AA Mortgages – an offshoot of breakdown services company the AA – has recently launched two new mortgage deals for buyers with a 5% deposit, meaning that hopeful homeowners now have a choice of 288 deals in total. If you’re looking to get on the property ladder, a mortgage with a 95% loan-to-value (LTV) ratio can help you onto the first rung. But which deal offers the best rate and what factors should you consider?
  • If you’re wondering whether a 95% LTV mortgage is right for you, our mortgage experts can give you impartial advice on your mortgage options. To chat with an expert, call Which? Mortgage Advisers on 0808 252 7987.


The return of the 95% mortgage In June 2007, UK buyers seeking a mortgage with a 5% deposit could choose from more than 900 products, according to data from Moneyfacts. This plummeted to just 6 in June 2009, after the financial crisis when a global stock market crash wiped millions from banks’ bottom lines. Mortgage providers tightened their lending criteria while increased regulation made it more difficult to secure credit.

Over the past decade, the number of 95% LTV mortgages on the market has steadily increased again, hitting 54 in June 2013 and then jumping to 175 the following year. Since 2015, around 123 new products have hit the market, offering hope to homebuyers with limited savings.

Find out more: 95% mortgages explained

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