High Loan To Value Mortgages
What is the loan to value (LTV)?
The loan to value (LTV) is essentially the size of mortgage a lender is prepared to offer you in relation to the value of the property you are buying or remortgaging.
It is expressed as a percentage. So, for example, if a lender offers a mortgage deal which has a maximum 80% LTV, that means they will lend you up to 80% of the property value. Therefore,you were looking to secure a £800,000 loan with which to purchase a £1million home, it would be a 80% LTV mortgage. Essentially, the higher the LTV, the lower your deposit. In other words, you have less equity in the property.
Mortgage LTVs typically range from 50% up to 95%. Often, it is a case of weighing up the pros and cons; a high LTV mortgage can be a wonderful way of securing your dream home, but it comes with higher monthly payments and less favourable rates.
The higher your LTV, the riskier it is for the lender offering you a mortgage.
In the eyes of a lender, the less equity you have in your home, the more likely you are to default on your mortgage. And if your property was sold as a result, the lender is more likely to make a loss.
This is because the value of the property could fall below the price you originally paid for it, and if you’ve taken out a large mortgage, the mortgage amount could end up being higher than the property’s value.
You’ll be pleased to learn that we have access to a number of mortgages, some of which are available up to 95% loan to value. These products are available for house purchases or for customers remortgaging from another lender.
By working with us, you benefit from our impartial advice and knowledge of the current mortgages available from a wide range of lenders, so why not get in touch?
We don’t tend to publish mortgage rates on our website – ever more so for high loan to value mortgages. In most cases rates are negotiable and based squarely on the individual circumstances of the borrower, their plans, assets and income.
Firco is an independent mortgage broker that has strong relationships with the key lenders in the UK mortgage market, including those private banks who do not have a high-street presence. We arrange bespoke mortgage solutions for our clients, providing a tailored one-to-one advisory service, delivered face-to-face or remotely, depending on what suits you.
Please click on ‘Become a Client, Enquire Now’ at the bottom of the page and complete the enquiry form and we will normally contact you within the same working day during business hours or if you would prefer us to contact you outside normal business hours then please advise and we will quite happily do so. Alternatively you can email us with details about your requirements to firstname.lastname@example.org or call us on 0151 372 0388