The 95% mortgage is BACK!
This popular lending option from pre ‘credit crunch’ sees buyers able to purchase property with just a 5% deposit. A fantastic opportunity for first time buyers whom haven’t yet raised the capital for a 10%+ deposit.
Since 2008 when the 95% mortgage became practically obsolete lenders have steered away from this product in times of financial uncertainty and high risk.
This has made it even harder for first time buyers to get on to the property ladder. Now the market is more stable and there is less risk for lenders the 95% mortgage is starting to creep back in. This is in perfect timing too as part of the government’s help to buy scheme is due to end in 2016.
The government help to buy scheme essentially re introduced the 95% mortgage in 2013 and now that the market is stronger major lenders are reintroducing it for themselves, but there will be rigorous affordability checks.
Nationwide Building Society have rolled out this option to all customers and will be charging 3.99% interest on a 2 year fixed rate with a one-off set up fee of £999.
To discover the best 95% mortgage for your situation and secure the best deal contact us on 01273 736536