95% Mortgage Products


Finding a mortgage can be tricky, especially if you have a small deposit. A 95% mortgage allows you to borrow up to 95% of the total cost of your property, so you could buy your dream home with a deposit of at least 5%, but less than 10%.

This means for a property worth £120,000, you would only need a deposit of £6,000.

95% mortgages are available to first time home buyers as well as those moving home.  The mortgage must be taken out on a capital and interest repayment basis (i.e. it can’t be interest only).  Also the property must not be a new build home. If the property is a new build we could only lend up to 90% of its value.

To find mortgage products and rates please chose from one of the options below:

For applicants with no adverse credit history and earning above £35,000 please click here.

For any other 95% mortgage rates please click here.

 

Lending Criteria and Information

Loan:

Size: Minimum £50,000.
         
Term: Minimum 5 years, Maximum 40 years.

New Build Houses: 90% Maximum Loan To Value

New Build Flats: 85%  Maximum Loan To Value

Property:

Minimum Value: £100,000.

Location:

Must be in England or Wales.

Applicant:

Age: Minimum 21, maximum is age 85, subject to income in retirement.

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

4.25x

4.25x

over £50,0001

4.5x

4.5x

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 the case will depend on the circumstances of the case and our assessment of the risk.

Loans above 80% Loan to Value:

If you aren't earning over £35,000 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. Please see our page ‘Mortgage Insurance – How it works’ for details.

Please contact the Mortgage Sales team to discuss your requirements by calling us on 01225 475737 or by email at mortgages@bibs.co.uk

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