Several major lenders have pledged to expand the availability of higher LTV mortgages for movers and first-time buyers. Mortgages with a LTV of more than 70% or 80% were more or less removed from the market entirely during lockdown, though have begun to reappear again.
The question is, who is presently eligible for a 90% LTV mortgage? More importantly, which lenders should you target with your application, if interested in a mortgage with the highest possible LTV?
Targeting the Right Lenders
While some mainstream lenders have reintroduced mortgages with slightly higher LTVs, qualifying for a 90% LTV with a major High Street bank remains a challenge. Tracking down an available 90% LTV mortgage in the first place is not easy, after which qualification for such a high LTV mortgage means passing very stringent eligibility checks.
If a high LTV mortgage is your priority, it is advisable to explore the options available with the help of an independent broker. Along with the usual mainstream lenders, a broker can provide access to an extensive range of specialist lenders not on the High Street.
Particularly, if eligibility is likely to prove an issue, it is essential to target the right lenders with the help of an experienced broker.
What LTVs Are Available for a New Build Mortgage?
The government is actively encouraging housing developers and construction companies to get back to business across the UK. Competitive LTV rates had been inaccessible throughout much of the pandemic, though are now once again being offered by specialist lenders.
For the most part, new build mortgages are currently available with a maximum LTV of 85%, though new build mortgages with a 90% LTV are not off the table entirely.
Construction workers and housing developers have been given permission to return to work by the Government, with all parties keen to meet the demand for new housing in the UK.
What LTVs Are Available for Help to Buy Mortgages?
Help to Buy mortgage terms, conditions, eligibility factors and maximum LTVs vary significantly from one lender to the next. Schemes that enable home buyers to purchase properties at discounted rates are expected to prove particularly popular over the coming years, when economic uncertainty continues to influence major spending decisions.
As it stands, the maximum LTV you are likely to be offered on a Help to Buy mortgage is around 75%. Though again, there are countless factors that could influence this and push the maximum available LTV in one direction or another.
Can I Get a Buy to Let Mortgage with a 90% LTV?
This is an entirely different area to that of conventional mortgage lending, which has been placed under greater scrutiny over the past few years. Lenders have been making it more difficult and costly for investors and landlords to extend their property portfolios, just as taxation on Buy to Let properties has been on an upward trajectory.
Specialist lenders however are once again making concerted efforts to assist investors looking to purchase and let out properties. In terms of maximum LTV availability, it is currently possible to arrange a mortgage up to 80% for a Buy to Let property or perhaps even higher in some special circumstances.
Due to the potential costs and complications involved in arranging a competitive Buy to Let mortgage, independent broker support from an early stage is essential.
Finding the Right Lender During COVID-19
Unfortunately, it seems highly unlikely that we will be seeing the back of COVID-19 and its economic impact for some time. This is one of many reasons why now is not the time to make any major purchase decisions, without first consulting with a reputable broker.
Irrespective of your intentions, your financial circumstances and your budget, it is essential to ensure that you understand all of the available options and have the information you need to make an informed decision.
At UK Property Finance, we’d be delighted to provide you with an obligation-free consultation, during which we will help you find the perfect lender to suit your requirements.
Call anytime for more information, or email the UK Property Finance team and we will get back to you as soon as possible.
Craig Upton works with British website owners by supporting their website optimisation process. Creating strategic partnerships and having keen focus to detail, Craig has a good track record helping companies in the UK gain access to new revenue streams online. Craig is the owner of iCONQUER.com, a UK based company and has been working in the digital marketing arena since 1999. A trusted entrepreneur, SEO consultant and trainer, Craig has worked with popular British brands and is not shy to get his face out there. Craig is committed to creating new opportunities working with British companies.