Thanks to <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/95-ltv-mortgages\/5-deposit-government-mortgage-schemes\/">government schemes<\/a>, a resilient property market and specialist mortgage products, 95% loan-to-value (LTV) lending is firmly back on the agenda, and in this guide, we take a look at the 5% deposit and <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/95-ltv-mortgages\/">95% LTV mortgage<\/a> options for <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/mortgage-application\/second-time-buyer-mortgages\/">second-time buyers<\/a>.\r\n\r\nIn this article\u2026\r\n<ul>\r\n \t<li><a href="#second-time">Can you get a 95% LTV mortgage if you\u2019re not a first-time buyer?<\/a><\/li>\r\n \t<li><a href="#rates">Are the rates the same for second-time buyers?<\/a><\/li>\r\n \t<li><a href="#difficult">Are 5% deposit mortgages more difficult to get for second-time buyers?<\/a><\/li>\r\n \t<li><a href="#eligibility">Are there any specific eligibility requirements?<\/a><\/li>\r\n \t<li><a href="#bad-credit">What about if you have bad credit?<\/a><\/li>\r\n \t<li><a href="#expert">Speak to an expert?<\/a><\/li>\r\n<\/ul>\r\n[feefo-banner]\r\n<h2 id="second-time">Are 95% LTV mortgages available for second-time buyers?<\/h2>\r\nSecond-time buyers with only 5% deposit to put down might actually find their mortgage options more limited than <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/95-ltv-mortgages\/5-deposit-mortgages-first-time-buyers\/">first-time buyers<\/a>. This is because some 95% LTV mortgage products are exclusive to first-time buyers, as is the <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/help-to-buy-mortgages\/#phase-three">latest phase of the Help to Buy scheme<\/a>.\r\n\r\nThat isn\u2019t to say there are no borrowing options for second-time buyers or home-movers with modest deposits. The <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/blog\/mortgage-guarantee-scheme-2021-everything-you-need-to-know\/">2021 mortgage guarantee scheme<\/a> is open to anyone and eligible customers can get approved with anywhere between 5% and 9% deposit. There are also mortgage lenders who\u2019ve <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/blog\/accord-95-ltv-mortgage\/">reintroduced 95% LTV products<\/a> and made them available outside of the scheme. Some of these products can only be accessed through a mortgage broker.\r\n\r\nAside from these two options, there could be fall-backs to consider. For instance, some <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/guarantor-mortgages\/">guarantor mortgages<\/a> are available to second-time buyers, so if you have a family member who is happy to support you financially, this could help lower the risk posed by your small deposit and increase the number of lenders who will consider your application.\r\n<h2 id="rates">Are mortgage interest rates the same for second-time buyers?<\/h2>\r\nYes, the interest rate you\u2019ll pay on a 5% deposit mortgage won\u2019t be directly impacted by your status as a second-time buyer. The only variable to consider is that some low-rate products might be unavailable to you, since Help to Buy is now exclusive to first-time buyers, and the same can be said of some of the 95% LTV products launched post-COVID.\r\n\r\nWhether you\u2019re a first-time buyer or a home-mover, 95% LTV mortgages tend to have some of the highest rates around. As a general rule, they can be around one percentage point higher than equivalent mortgage products with 90% loan-to-value ratios.\r\n\r\nNeedless to say, the best rates on the market can be difficult to come by if you only have 5% deposit, but bear in mind that getting a favourable deal is still possible. There are mortgage brokers who specialise in arranging low-deposit mortgages for home-movers, and they know exactly which lenders are best placed to offer them with the lowest rates available.\r\n\r\nIf you were to head out into the market without professional advice, the chances of rejection or having to settle for an unfavourable deal are high, so using a broker really is a no-brainer - they could save you time, money and potential disappointment!\r\n<h2 id="difficult">Are 5% deposit mortgages more difficult to get?<\/h2>\r\nFor second-time buyers and home-movers, this is true to an extent. With Help to Buy equity loans and some 95% LTV mortgage deals being reserved for first-time buyers, your choice of products and approachable lenders might be restricted by your modest deposit amount.\r\n\r\nBut favourable rates and deals are out there, if you know where to look. You\u2019d need to find a lender who understands the needs of home-movers and customers with limited deposit amounts, as this will increase your chances of landing a low interest rate.\r\n\r\nIt could well be the case that the perfect lender for you is one you\u2019ve never heard of, one you won\u2019t find on the high street or through a quick Google search. This is why speaking to a mortgage broker before you apply can pay dividends. The advisors in our network have access to every lender on the marker and deep working relationships with mortgage providers who specialise in second-time buyers with small deposits.\r\n\r\nThis means that they\u2019re best place to help you find the right lender, first time, but that isn\u2019t the only benefit to using a mortgage broker. They can also give you bespoke advice about your mortgage options and guide you through the application process from start to finish.\r\n<h2 id="eligibility">Eligibility requirements for second-time buyers<\/h2>\r\nThere are no specific eligibility requirements on 95% LTV or 5% deposit mortgages for second-time buyers compared to other types of borrower. But if you\u2019re using the mortgage guarantee scheme, there are a few caveats to keep in mind\u2026\r\n<ul>\r\n \t<li>The scheme cannot be used to buy a home worth over \u00a3600,000<\/li>\r\n \t<li>The property must be a primary residence<\/li>\r\n \t<li>The applicant must be an individual(s), not a company<\/li>\r\n \t<li>Only repayment mortgages are available<\/li>\r\n<\/ul>\r\nYour other options as a second-time buyer would largely be restricted to the new 95% LTV mortgages that have been reintroduced to the market since COVID-19. Not all of them are available to home-movers and some can only be accessed through a mortgage broker.\r\n\r\nWith regard to the 95% LTV products that are available to you, your mortgage application would be assessed in line with the lender\u2019s general eligibility criteria. In other words, they will want to establish your creditworthiness based on factors including your income, credit history, your outgoings and other variables. You can <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/mortgage-application\/#what-lenders-ask">read more about how mortgage eligibility is assessed<\/a> in our complete guide to mortgage applications.\r\n<h2 id="bad-credit">Will it make any difference if I have bad credit?<\/h2>\r\nYes, in the sense that your options are likely to be even thinner on the ground, depending on the type of bad credit you have. Since your mortgage options might already be limited by your low deposit, seeking advice from a mortgage broker who is experienced in arranging bad credit mortgages is highly recommended.\r\n\r\nAs a home-mover with only 5% deposit, you\u2019re ineligible for some of the schemes and specialist products that could help you get a low deposit mortgage, and your bad credit will only drive the risk of rejection or unfavourable rates up even further.\r\n\r\nSome mortgage lenders will turn down a second-time buyer with bad credit outright, even if your credit issues are considered moderate in the grand scheme of things, but there are specialist lenders who have the flexibility to take the age, severity and reason for your adverse credit into account before making a final decision about your application.\r\n\r\nThe good news, however, is that the right mortgage broker could help you find a lender who is best placed to offer a good deal for customers who tick all three boxes: bad credit, second-time buyer and 5% deposit. Your circumstances might be somewhat niche, but that\u2019s exactly what the mortgage brokers we work with specialise in!\r\n<h2 id="expert">Speak to a mortgage broker<\/h2>\r\nIf you\u2019re a second-time buyer or home-mover who\u2019s looking for a 95% LTV mortgage, your best bet is to speak to a mortgage broker. Since many 5% mortgage deals are limited to first-time buyers, you might struggle to find a willing lender with that amount of deposit, and even if you do get approved, you could end up paying over the odds in interest.\r\n\r\nNot only can a broker make sure you\u2019re matched with a lender who caters for second-steppers, a mortgage advisor with the right knowledge and expertise can make sure you end up with the best rates on the market and guide you through your application.\r\n\r\nWe\u2019ve made it our mission to make sure everyone gets the right advice. To do this, we launched a free-broker matching service that can pair you up with the perfect advisor for your needs and circumstances, in this case, someone we\u2019ve handpicked because they have a track record of helping people exactly like you and securing them the finance they need.\r\n\r\nCall 0808 189 2301 or <a href="https:\/\/enquiries.onlinemortgageadvisor.co.uk\/deposits-advice\/">make an enquiry<\/a> and we\u2019ll set up a free, no-obligation between you and a broker who specialises in 95% mortgages for second-time buyers today.