HIGH LOAN TO VALUE MORTGAGE

If you are new to the property market and do not have a large sum to invest then you will find that you need to borrow most if not all of the price of the property.

How Does Loan to Value Affect Cost

As a general rule the higher the loan to value, the riskier the loan is to the lender, and so the more costly the loan:

• 90% LTV - Many lenders will start to charge you a high loan to value fee (use to be known as a mortgage indemnity guarantee premium or MIG)

• 95% LTV - This is the upper limit for most lenders, though some will lend up to 97%. You will usually be charged a high loan to value Fee

• 100% LTV - Some lenders have special loans where you can borrow 100% of the value of the property, but the interest rates do tend to be a little higher then for normal mortgages.

The recent 'credit crunch' has meant that lenders are being more careful in their lending. In the past you could borrow over 100% of the value of the property, but this has now effectively stopped.

Factors Affecting Lender's Decision

• Income: Varies between lenders. Some lower their income multiple above 90% loan to value.

• Credit History: Very important as the higher the loan to value the 'riskier' the loan is for the lender. So if you are borrowing a very high loan to value or even 100% of the value of the property then you will need to put forward a 'clean' case.

Will I Qualify

If you need a high loan to value loan then it is quite important to make sure that you qualify for the loan.

We can help you to do this by telling you about which schemes you could qualify for and obtain a decision in principle from the lender.

If you are borrowing a very high loan to value and have are combining this with a high income multiple then the number of schemes available to you will fall dramatically.

Help & Information

Our mortgage service is designed to put you in control of your mortgage by trying to make sure that you understand all the choices you need to make and then to provide solid administrative support to ensure things go through as smoothly as possible.

If you have any questions about your situation or how we can help then please give us a call on 020 8746 3100 or make a no obligation online enquiry.

Useful Tools:

• Maximum Loan Calculator

• Monthly Cost Calculator

• Affordable Loan Size

You can also get up to an Extra £100 Cashback (or more) if we arrange your mortgage.