95% Mortgages

Posted on 6 November 2011 by John

My partner and I are looking to buy a £250k property, we have a 5% deposit. My partner has never owned a property, I previously have - would we qualify for a 95% LTV mortgage?

In addition to this we have £40k worth of debt that we would like to combine with the mortgage (and or a loan taken-out at the same time), is this possible?  We each earn £40k a year and have good credit ratings.


There are literally only a hand full of lenders offering 95% LTV mortgages at the moment and a half of these either require a parent to act as guarantor or a family member to put down a deposit of 20% which can not then be withdrawn.

Whilst you have a good credit record, I think that Lenders will be wary of the amount of debt that you have built up and whilst you could consolidate these into one unsecured loan the question will remain "what is to stop you building up the same debts again"?  You will need to demonstrate that either your situation has changed or that you will be willing and able to change your spending habits.  I believe that you would have a far better chance of getting a mortgage if you could save another 5% deposit and at the same time reduce your outstanding debts.

However, there is one product on the market which is aimed at First Time Buyers with a 12 month rental history and the lender is willing to take a view on each individual set of circumstances placed before them.  I believe we can help you and that you would benefit from speaking to one of our independent mortgage advisers.  Please call 0344 346 3672 and tell the consultant the date and title of your question, they will then be able to advise you on your situation.


Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

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