Speak to an Expert Advisor
Let us Look Into The Best Rates
Why Choose Us
Ascot Mortgage Expert
Getting on the property ladder is no mean feat in the current mortgage market. But with Ascot Mortgages you don’t have to give up your dream with our low deposit mortgages. Ascot Mortgages are experts in finding the very best high loan to value mortgage deals for their first time buyer mortgage customers with less than 10% deposit.
Even in today’s economic climate, there are still over a hundred high loan to value mortgages available (just 5% – 10% deposits) and Ascot Mortgages will search across the market, including many private lenders to find you a mortgage which makes buying your first home a real possibility and not just your dream! Request information on the current best high loan to value (90% LTV +) mortgage deals.
High Loan to Value (LTV) Mortgages are usually the type of mortgage you will require when you are buying your first home and you have a limited deposit of 10% or less of the property you would like to purchase. A High Loan to Value Mortgage means you are able to borrow a high proportion of the value of the property, this is calculated as a percentage and can be easily calculated as LTV = Amount Borrowed (Mortgage) / Property Value.
For example if the property you wish to buy is £100k and you have a deposit of £15k then your LTV would be: 100k – 15k / 100k = 85% (this assumes the value of the property is the price which is being paid, the value will ultimately be determined by the mortgage lenders valuation survey).
Before the property market crash it was quite possible to get high LTV mortgages of 120% + (the additional 20% of the mortgage was given back to you, similar to a secured loan, but at the time the rates where much cheaper). Today however, most mortgage deals above 100% LTV have been abolished because they are deemed too risky for both borrowers and lenders. There are however still a number of 90% LTV mortgages available for those with good credit scores.
High LTV mortgages do come with stricter lending criteria which can vary between lenders – but fortunately as the mortgage market is beginning to ease up (2013) this lending criteria is gradually relaxing.
Word of caution – not all high loan to value mortgages offer a good deal – in fact it is quite common for low deposit mortgages to have very high lending charges, high interest rates, and /or expensive extended tie-in. So if you are considering taking out a 90 percent mortgage you should speak to a reputable mortgage broker such as Ascot Mortgages who will be able to make sure you are getting the best mortgage deal available.
First time buyers with limited cash available for a deposit need to also factor in other unavoidable
expenses associated with buying your first home:-
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.