95% Residential fixed for 2 years

Our 95% residential product is available for applicants who only want to put down a 5% deposit. We offer a flexible approach to mortgage criteria with manual underwriting. We also offer a Joint Borrower Sole Proprietor option, which may be useful if affordability is tight as we would take into account the parent’s income when assessing the mortgage application, without them becoming a legal owner of the property.

A 95% loan to value (LTV) mortgage allows you to borrow up to 95% of your property value or the purchase price, whichever is lower – this means that you only need to contribute a minimum 5% deposit.

95% mortgages are only available on our residential product range if you’re purchasing a property with a loan size of up to £500,000. The maximum amount we will lend will depend on your individual financial situation and other circumstances.

We will purchase additional security in the form of an insurance policy which protects us and not you in the event that we suffer a loss on the possession and sale of the property. The premium for this policy is included in the rate we charge for the mortgage.

The mortgage listed below moves on to our Standard Variable Rate (SVR), 5.75% (variable), after the initial rate period. The SVR is increasing to 5.99% (variable) from 1^st September 2022.

Initial rate i	Overall cost for comparison i	Max % LTV i	Payment type i
4.25%	5.7% APRC	95%	Repayment only
See example
Representative example: A mortgage of £200,000.00 taken out for a period of 31 years on a repayment basis. Monthly instalments: £969.49 per month for 23 months, followed by £1,149.99 per month for 348 months. Total amount payable: £423,878.79. Total amount of credit: £200,000.00. The total amount payable includes valuation fee £285, product fee £999 and closing fee £100. The overall cost for comparison is 5.7% representative APRC. This example is based on our 95% Residential fixed for 2 years product. It is based on our current Standard Variable Rate of 5.75%, with fees not added to the mortgage. Please ask for a personalised illustration for your own particular requirements. The SVR is increasing to 5.99% (variable) from 1^st September 2022.

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Mortgage details

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Your loan to value is i

We’re sorry but the maximum LTV for this product is X%

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This is the maximum amount based on the information you provided. Your mortgage adviser will take you through the application process and will calculate the amount you can afford to borrow based on your income after the deduction of those expenses and commitments. Further restrictions may apply for specialist products.

Key features
- Availability – Purchase up to 95% Loan To Value (LTV). Minimum deposit of 5% required. LTV for new build is restricted to 90% for houses and 85% for flats.
- Flexibility – Overpayments up to 20% of the capital balance as at 1st January are allowed in each calendar year without penalty.
- Portable.
Early repayment
If you repay your mortgage early, or make an overpayment, you may have to pay an early repayment charge.
For full repayment, you will pay 3% of the outstanding balance in year 1, and 2% in year 2, plus a Closing Administration Fee (currently £100).
For overpayments, you will pay 3% on any amount exceeding your 20% limit in year 1, and 2% in year 2.
Product fees
- Valuation fee.
- Product fee £999

Lending criteria

Residential Lending Criteria and Information

Loan:	Size: Minimum £50,000.00. Term: Minimum 5 years, Maximum 40 years.
Property:	Must be in England, Wales or Scotland. We are also unable to offer a Right To Buy mortgage in Scotland. Mainland Scotland and The Shetlands, The Orkneys, Arran, Bute, Skye, Harris & Lewis, Mull and Islay.
Applicant:	Age: Minimum 18, maximum is 85, subject to income in retirement.
Income:	Household income must be at least £20,000. No minimum period of employment, but must have passed probation, or have 3 years self employment history.

The amount we will lend will depend on the value of the property and a calculation based on income and expenditure. As a guide, we will take gross annual income and then apply a deduction for the annual amount paid towards any existing debts or other financial commitments. We apply the following multipliers to the amount remaining:

Income After Deductions	Sole Borrower	Joint Borrowers
£20,000-£50,000	4.5x	4.5x
Over £50,000	5.0x	5.0x

These multiples are for guidance only and do not guarantee that we will lend the amount indicated. We will carry out a full assessment of your income and expenditure to ensure that you can afford your mortgage both now and in the future.

Underwriting:	We take a flexible approach to underwriting and will consider each case on its merits. We do not credit score. The actual rate and APRC for your case will depend on your circumstances and our assessment of the risk.