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Potential home owners with a 15% deposit (or home owners looking to remortgage for 15% equity) are in a favourable position when it comes to obtaining a mortgage with a low interest rate. This is because during the credit crunch many lenders dropped their 90% and 95% mortgages, so there were less of these types of mortgages available which pushed up costs. However the 85% mortgages were not so much affected and there are still a large number of 85% LTV mortgages available – however the available rates vary enormously.
Ascot Mortgages work day in, day out in the mortgage market and know very well where the best deals can be found at any given time. So give us a call, or fill in the form below to see how much we could save you off the overall cost of fixed rate mortgage / remortgage.
There is no doubt that the property market has taken a knock in recent years, however it is still possible to get a foot on the property ladder. By saving and accumulating a 15% deposit, you are eligible for an 85 percent fixed rate mortgage, which means that the property dream is realistic for many. It also means that if you are looking to remortgage the 15 percent requirement means that you do not need to worry if there are not lots of equity in your current property, as you are still eligible for the excellent opportunities that a fixed rate mortgage offers. Here at Ascot Mortgages, professional mortgage brokers and renowned marker specialists, we believe in finding you the best fixed rate deal to suit your circumstances.
As established mortgage brokers we can find you a bespoke deal based on our expertise and knowledge of the market. If you are looking for stability and the option to budget, then a fixed rate mortgage is the best option for you. An 85 percent fixed rate mortgage deal means that you benefit from a fixed interest rate for a set time period and, moreover, means that even if interest rates rise your monthly repayments will remain the same. This is particularly suitable for those wanting to keep track of their finances because it means you can rest assured that your payments remain the same regardless of what is happening to the economy. This is particularly reassuring given the recent economic difficulties and means that, with your 15 percent deposit, your property investment is easy to manage and finance.
Although choosing a mortgage is an immediate consideration, which Ascot Mortgages can help and guide you with, choosing a fixed rate mortgage of 85 percent also ensures security for the future. In contrast to a variable mortgage, the repayment will not dramatically change in the future and will not therefore leave you with a shortfall if the repayments should rise dramatically, which could ultimately put your home at risk. Although with a fixed rate mortgage there is always the chance that interest rates may go down, as a homeowner you would be able to adapt to this if it was worthwhile for you by refinancing. In addition, the fixed rate mortgage is well defined and easy to work with, providing stability and security, which makes it particularly attractive for you if you are planning to stay in your home for a long time or if you have a young family and other financial obligations to consider.
Ascot Mortgages are best placed in the market to guide you through the process of applying for your fixed rate mortgage, meaning that the time consuming and sometimes stressful elements are removed, leaving you free to concentrate on your other concerns. By saving a manageable 15 percent deposit, and benefiting from an affordable fixed mortgage, you can take your first steps onto the property ladder, remortgage if you have minimal equity or move into a bigger property.
A 60% LTV mortgage means you’re borrowing only 60% of the property’s value, with the remaining 40% covered by your deposit or equity. Key benefits include:
– Lower Interest Rates: Since lenders perceive a lower risk with a higher deposit, they often offer more competitive interest rates for 60% LTV mortgages.
– Greater Chance of Approval: A larger deposit often means a better likelihood of mortgage approval as it demonstrates financial stability and commitment.
– Smaller Monthly Repayments: With a lower loan amount and potentially reduced interest rates, monthly repayments might be more manageable.
Yes, it is possible to secure a 60% LTV mortgage for a second home or investment property. However, the criteria might be slightly different compared to a primary residence, and interest rates might be higher. Lenders will consider the potential rental income (for buy-to-let properties) and any other associated costs when assessing eligibility.
As with most mortgages, there can be various fees associated with a 60% LTV mortgage. These might include:
– Arrangement Fees: Charged by the lender for the mortgage product selected.
– Valuation Fees: For assessing the property’s value.
– Early Repayment Charges: If you repay the mortgage ahead of the agreed product term.
– Legal Fees: For conveyancing processes.
It’s important to discuss with your lender or mortgage advisor to get a full breakdown of all potential fees.
If you’re struggling to meet the repayments on a 60% LTV mortgage, it’s crucial to contact your lender as soon as possible. They might be able to offer solutions such as a payment holiday, changing the repayment terms, or other adjustments. If repayments are continually missed without any agreement, the lender has the right to start the repossession process. However, lenders generally view repossession as a last resort and will typically work with borrowers to find alternative solutions.