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FAQMYMORTGAGE.CO.UK > MORTGAGE GUIDES > HIGH LOAN TO VALUE

High Loan to Value Mortgages

If you do not have a large sum to invest then you will need to borrow most of the price of the property you wan to buy.

Maximum Loan to Value

At the moment (March 2009) the most you can borrow is 90% of the value of the property. Although there is one lender (Nationwide) that will lend up to 95% if you are an existing borrower.

How Does Loan to Value Effect Costs

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:

  • Higher LTV = Higher Cost The interest rate will be higher and/or the fees will be higher. Generally costs change in steps at 50%, 60%, 65%, 70%, 75% etc. So it may make a difference if you can get your borrowing down to below one of these loan to value levels.
  • 90% LTV When lenders return to lending over 90% loan to value, then will probably do as they have done in the past and charge a high loan to value fee.
  • 75% LTV Some lenders charge a high loan to value fee on loans above 75% (or even 70%) loan to value. So make sure you look at the key facts illustration to make sure that you are not being made to pay this charge.

You can take a look at how the loan to value will affect costs by using our Mortgage Rates Search Engine

Or Alternatively you could ask an adviser what they can do for you.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

FaqMyMortgage.co.uk is not a regulated firm. The information and tools on this site are for general information and background only. No part of this site should be construed as 'personal information' or 'advice' as defined by the Financial Services Authority (FSA). Any opinions expressed are the personal opinions of the writer only. You should seek professional advice to confirm that any suggestions or opinions apply in your personal circumstances.

Whilst every effort has been made to try to ensure the accuracy of information on this site, I cannot guarantee that it is all accurate or up-to-date. You should ensure that you confirm any information that you will rely on with the appropriate lenders or a mortgage adviser. Always obtain a Key Facts Illustration if you wish to compare mortgages or if you wish to apply for one.

If you would like any personal information or advice on your particular circumstance then you should speak to an FSA Regulated Mortgage Adviser