In today's credit crisis, it can be hard to own your own place. Even if you have good credit, coming up with a large down payment can be pretty hard to do. One way to avoid that is to use a 95% mortgage. 95 percent mortgages can be more difficult to get because there is a higher risk to the lender. However, there are some definite advantages to it.
The first of the 95 percent mortgages from Lloyds TSB is a 3 year 4.09% fixed rate mortgage. This is the initial rate; however, after 3 years it could change. This loan does have a few limitations. It is only available to permanent UK residents who already have an account with Lloyds TSB. It is not available only for remortgages. It is for first time buyers only. The maximum amount for this mortgage is 350,000 pounds so that may be a limit to some customers. It is available to self-employed individuals but you cannot self certify your income.
The second of the 95 percent mortgages is similar to the first in that it is a 3 year 4.09% fixed rate mortgage. However it is different because it is not available to first time buyers or remortgages. It is mainly for people who want to buy a second home while waiting for their first home to sell. It is also maxed out at 350,000 pounds. The maximum length of this mortgage is 35 years but there is no prepayment penalty if you pay it off quicker.
The third mortgage offered by Lloyds TSB is a 120% mortgage. This mortgage is a 2 year 4.49% fixed rate mortgage with a maximum length of 35 years and a minimum length of 5 years. The two years in the name may be a bit confusing, it only refers to the length of the initial rate term. This term is called 120% mortgage because you do not have to have anything to deposit, you can actually borrow up to 20% more than the cost of the house to pay for repairs or closing costs. This mortgage is not available to first time buyers or for remortgages. You also must already have a loan with Lloyds to qualify for this loan.
As you can see there are a few different types of 95 percent mortgages with Lloyds TSB. They may not be listed on the lender's website however. Going in to the lender is the best way to apply. For more interesting mortgage articles please visit Jenga Loans.