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.
- We will find you the best rates on 85% fixed rate mortgages deals
- Free initial financial advice
- Simple, fast, hassle-free service
- We will search across the market for you
High loan to value mortgage for first time buyers
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:-
- Mortgage Arrangement Fee (this can in most cases be added to the mortgage)
- Mortgage Valuation Fee (can sometimes be added to the mortgage)
- Independent Homebuyer or Buildings Survey
- Legal Fees (some lenders will contribute towards the cost of your legal fees)