What does a 95% mortgage mean?
Before you can get a mortgage you will need a deposit. The minimum deposit that lenders will accept is 5% of the property purchase price or valuation, whichever is lowest.
By ‘lowest’ we mean the price you pay for the property and not what it is on the market for. However, if a surveyor who values the property says it is worth less than you have agreed to pay for it then the surveyors lower value is what the lender will accept as the property value and it is 5% of this that you will require as a deposit.
If a surveyor was to agree that a property is worth more than the price being paid then the lender will not use this value; they would then use the amount actually be paid for the property.