95% Mortgage Options

Since the launch of Help to Buy 2 there is now a wider choice of products for borrowers with a 5% deposit, even outside the government backed scheme.

Mortgage lenders may have been slow to join the second part of the Help to Buy scheme but this doesn’t mean that borrowers looking for a 95% loan to value mortgage should be limited to just a handful of mortgage lenders. 

The aim of the second part of the scheme, where the government guarantee part of the mortgage borrowing, for house buyers with a 5% deposit, was to make mortgage borrowing more affordable and widespread for borrowers who needed a high loan to value mortgage.  Several smaller building societies are now offering market leading rates at 95% LTV (outside the Help to Buy scheme) so borrowers should shop around to see what the best deal is for them, it may not necessarily be with the Help to Buy scheme.

Initially, only Lloyds Banking Group and Royal Bank of Scotland offered Help to Buy 2 but now Aldermore, HSBC, Virgin Money, Santander, Barclays are or will be involved in 2014.  With other lenders expected to join the scheme, this extra competition should mean that the Help to Buy rates available will become more competitive.