A 95% mortgage allows you to borrow 95% of the property’s purchase price from a bank or building society (the lender) while the final 5% is covered through your deposit.

You can use your own savings if available or if you do not have the deposit available the majority of lenders will allow members of your family ( such as parents, grandparents , brothers & sisters ) to ‘gift ‘ you the deposit from their funds.

One or two lenders also allow the deposit to be gifted from cousins, nephews, aunts and uncles and non-family members.

When buying a New Build Property and depending on the builder lenders can also accept up to 5% discount off the purchase price from the builder as a discount.

Depending on the builder and scheme you may still have to provide 5% deposit from your own funds or family.

When buying a shared Ownership Property you purchase a share in that property – for example if the property value is £200,000 and you are looking to purchase a 50% share you will need £100,000 to do so – the majority of lenders will still need you to have a 5% deposit available meaning you would require a 95% mortgage.

Also to bear in mind with Shared Ownership properties is that you will pay a monthly rent to the Housing Association for the remaining 50% share of the property along with a monthly service charge in addition to your monthly mortgage payments.