70% LTV Mortgage
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Why Choose Ascot Mortgages
Why Choose Ascot Mortgages
When you’re in the market for a 70% LTV mortgage, it’s crucial to partner with an expert who can guide you through the labyrinth of lenders, interest rates, fees, and repayment options. That’s where Ascot Mortgages comes in.
With years of experience in providing personalised mortgage advice, we at Ascot Mortgages are committed to helping you find the best 70 LTV mortgages to suit your individual needs. From the initial application to the moment you get the keys to your new property, we’ll be with you every step of the way, offering our expert advice to ensure you make the most informed choices.
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Written by:
Alison Gibson
Ascot Mortgage Expert
Last Updated:
04.11.2024
Written by:
Alison Gibson
Ascot Mortgage Expert
Last Updated:
04.11.2024
What is a 70% LTV Mortgage?
A 70% LTV mortgage means that you’ll be borrowing 70% of the property’s value, while putting down a 30% deposit. Here’s a simple breakdown:
- Loan-to-Value (LTV): This is the percentage of the property’s value that you’ll be borrowing. In this case, it’s 70%.
- Deposit: The remaining 30% that you’ll be paying upfront.
- Property Value: The total value of the property you’re looking to buy.
So, for a £300,000 property:
– 70% LTV loan = £210,000
– 30% deposit = £90,000
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How do 70% LTV Mortgages Work?
The dynamics of a 70% LTV mortgage are straightforward but involve a few steps:
Borrowing
- Applying: Once you decide on a lender, you apply for a mortgage where you’ll borrow 70% of the property’s value.
- Approval: The lender assesses your application, including credit checks, to decide if you’re eligible.
- Loan Agreement: Upon approval, the lender will issue a loan agreement detailing the terms, repayment schedule, interest rate, and any fees involved.
Repayments
- Monthly Payments: Every month, you’ll need to make payments that consist of both principal and interest.
- Interest Rates: Depending on the deal you’ve chosen, you may have a fixed, variable, or tracker rate.
- Duration: The length of your mortgage term will affect how much you pay monthly.
Property Ownership
- Immediate Ownership: Even though the mortgage isn’t fully paid, you become the property owner once the deal is closed.
- Full Ownership: You’ll own the property outright after the loan is entirely paid off.
Why Get a 70% LTV Mortgage?
Here are some compelling reasons why you might opt for a 70% LTV mortgage:
- Lower Interest Rates: Generally, the lower the LTV, the lower the interest rates offered by lenders.
- Easier Approval: A 30% deposit mortgage is a strong indicator to lenders of your financial stability.
- Flexibility: This LTV allows for a balanced loan amount that offers room for negotiating terms.
- Better Deals: With a larger deposit, you often have access to the best 70% LTV mortgages available.
- Equity: You immediately own a larger portion of your property, giving you more money in your pocket if you decide to sell.
What Types of 70% LTV Mortgage Rates Could I Get?
There are various types of interest rates available with 70% LTV mortgages:
- Fixed-Rate: Your interest remains constant for a specified period, offering predictable payments.
- Tracker Rate: This follows a particular index, typically the Bank of England base rate, plus a set margin.
- Discounted Rate: A reduction on the lender’s standard variable rate for a specific time.
- Capped Rate: Your rate won’t go above a certain level, but can vary below that cap.
- Standard Variable Rate (SVR): The lender’s default rate that you’ll likely move to after any introductory deal ends.
- Standard Variable Rate (SVR): The lender’s default rate that you’ll likely move to after any introductory deal ends.
Alison Gibson
Ascot Mortgage Expert
Remortgage
Remortgaging is applied when you keep
living in your present property while applying for another mortgage deal with a new lender. Before finding out how to remortgage and get the best offers from experts like Ascot Mortgages, you have to check meeting what parameters of the deal that can help you succeed the most. The range of background factors varies a lot — from the recently changed loan-to-value ratio or your existing agreement coming to an end.
Whether you are trying to get a more beneficial deal or searching for funding to improve your home conditions, remortgaging is one of the most advantageous scenarios to consider.
Advantages of 70% LTV Mortgages
Financial Benefits
- Lower Monthly Repayments: Due to lower interest rates.
- Access to Better Deals: The best 70% LTV mortgages usually offer more favourable terms.
- Room for Additional Borrowing: Potential for a second mortgage or loan based on the equity you build.
Personal Benefits
- Financial Stability: A 30% deposit mortgage reduces the risk of negative equity.
- Freedom: Greater flexibility in choosing properties and negotiating terms.
- Peace of Mind: Lower risk and predictable repayments offer greater peace of mind.
Disadvantages of 70% LTV Mortgages
- High Initial Deposit: A 30% deposit mortgage can be difficult to save for.
- Reduced Liquidity: A substantial amount of your money is tied up in property.
- Missed Investment Opportunities: Your large deposit could potentially be invested elsewhere for a better return.
- Market Risks: Although less likely, a 70% LTV does not completely insulate you from negative market trends.
Making an informed choice when it comes to a 70% LTV mortgage will involve considering your unique circumstances and consulting with an expert like Ascot Mortgages. Always consider the rate, fees, and other terms in the offer. Take your time, compare lenders, and you’ll find the best 70 LTV mortgages tailored for you. Feel free to reach out to Ascot Mortgages; we’re always here to help!
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FAQ
Absolutely! A 70% LTV mortgage can be utilised for remortgaging or refinancing purposes. If you have built up at least 30% equity in your property, you can explore the option of remortgaging at this LTV to potentially secure a better interest rate or to release some equity from your home.
The repayment term for a 70% LTV mortgage typically varies based on the borrower’s age, preference and circumstances. In the UK, standard mortgage terms are generally between 25 to 35 years although with some lenders 40 years. However, shorter or longer terms might be available based on your financial situation, age, and the lender’s criteria. It’s always best to discuss your preferences with a mortgage advisor to find a term that aligns with your financial goals.
Yes, many lenders accept gifted funds as a deposit for a 70% LTV mortgage. However, there are often specific criteria to meet. The person gifting the funds (often a family member) may need to provide a written confirmation that the money is a gift and not a loan, meaning there’s no expectation for the money to be repaid. It’s essential to check with individual lenders about their policies and requirements related to gifted deposits.
The mortgage application process for a 70% LTV mortgage typically takes between 1 to 2 weeks from the initial application to receiving a formal mortgage offer and then between 8 – 12 weeks for legal completion. However, this can vary depending on the lender’s processing times, the complexity of the application, and how promptly you provide the necessary documentation. Working with a mortgage advisor can sometimes expediate the process and provide clarity on expected timeframes.
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Legal
Ascot Mortgages authorised and regulated by the Financial Conduct Authority and can be found on the FCA register (www.fca.org.uk) under reference 776062. The FCA do not regulate some forms of mortgages. The guidance and advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK. There may be a fee for mortgage advice. The precise amount will depend upon your circumstances but we estimate it will be £599 per mortgage account. Ascot Mortgages Ltd give you the option to pay a non-refundable fee of £1299 payable with the application. If this option is taken, Ascot Mortgages Ltd will refund any procuration fee received by the lender.
Ascot Mortgages Limited is registered in England and Wales and have their registered office at 8 Webster Court, Westbrook, Warrington, WA5 8WD. The company’s registration number is 06764971.
We are a credit broker, not a lender. We work with the whole of the lending market. We may receive commissions that will vary depending on the lender, product, or other permissible factors. The nature any commissions model will be confirmed to you before you proceed.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY DEBT SECURED ON IT
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