95% mortgages are an ideal type of lien for people who have a small deposit and wish to buy a home. The basic requirement for buying 95% mortgages is for the borrower to put in a deposit of 5% of the property's purchase price. After the credit crunch two years ago, these mortgages decreased in popularity. Nowadays, not many lenders are willing to provide them. This is also due to the fact that 95% mortgages have some drawbacks to take into account before plunging into them.
For example, since 95% mortgages require a small deposit, they have higher interest rates than regular mortgages with larger deposits. This is a disadvantage of 95% mortgages that can put off many borrowers and result in their choosing other kind.