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About 95% Mortgages
In the last few years it has been more difficult to obtain a 95% mortgage due to the fall in the housing market and the global economic crisis. However, in recent months things have been looking up and there are now lots of companies offering 95% mortgages and even 100% mortgages.
95% mortgages are an ideal way to get onto the property ladder, but what exactly are they and how can they benefit you?
What is a 95% mortgage?
In basic terms, a 95% mortgage is where you borrow 95% of the value of the home you want to buy from a mortgage broker and pay a deposit of 5% yourself. This makes the possibility of buying a home much more accessible for people who don’t have a large deposit, such as first time buyers.
Why choose a 95% mortgage?
In recent years many people who could not afford to place a sizeable deposit on a home were simply pushed out of the housing market, but today 95% mortgages allow anyone who can find 5% of the value of the home they want to buy and take their first steps onto the property ladder.
Renting can seem like a simpler option but when you have a mortgage you pay it off each month just as you would rent, except the money you are spending is going towards eventually purchasing the property, so you’re not simply losing hundreds or even thousands of pounds every month.
When you take out a 95% mortgage your hard earned cash I used to buy your home, rather than to rent a space that you will never own and won’t benefit from.
Where can I find a 95% mortgage?
If you’re searching for a 95% mortgage the best place to start is by looking at comparison sites. This is so that you can find lots of quotes from different providers at once and don’t need to spend time and effort trawling through company sites individually.
In addition to quotes, you’ll also be able to find out more information about different mortgage providers and what they offer, so you can make an informed decision about which is the right mortgage broker for you.
Always bear in mind that a mortgage is a serious financial commitment so make sure you fully understand your contract and the ramifications of non payment before you sign.