High loan-to-value mortgages are available if you have a limited amount of money available for a deposit on a house. These mortgages allow you to borrow a higher percentage of the property’s value and the amount that you borrow is known as the ‘loan to value’, often shortened to LTV. For example if you if you wanted to buy a property worth £250,000 and you put down a £25,000 deposit, the loan to value of your mortgage would be 90 per cent. In the current economic climate anything over 80 per cent would be considered high LTV, but many mortgage lenders set their limits even lower than that. Don’t forget that the lower the LTV ratio is, you are likely to get lower interest rates on the mortgage.
It’s a good idea to get some advice from a mortgage adviser who can look at your financial situation and help to find a suitable mortgage for you. It could also be beneficial to get in touch with a financial adviser, and consider creating a savings plan that could help you build a larger deposit which could help to get you a better mortgage.
Questions you might like to ask a mortgage adviser…
- What is the highest percentage of the value of property you can loan?
- Will having a high loan to value mortgage mean I will have to pay larger interest rates?
- How can I boost the amount that I have already saved for my deposit?