A 60% LTV mortgage is a mortgage available to those who can produce a deposit of at least 40% of the value of the property they’re buying or remortgaging. The mortgage rate you can apply for is decided by LTV thresholds, the lower the threshold the cheaper the rate.
One may also ask, what is the highest LTV mortgage available?
Guide to 95% mortgages. A 95% LTV mortgage is one of the highest loan-to-value ratio mortgages available, but how do 95% mortgages work and where can you find 95% mortgage lenders?
Likewise, are there any 90 LTV mortgages available?
A wide range of lenders tend to offer 90% LTV mortgages in the UK which give you plenty of options.
Is a 40% deposit good?
Buying with a 40% plus deposit
Banks will see you as low-risk because you will already have a significant chunk of equity in the property, making the bank less exposed to house price falls.
Loan to value (LTV) is all about how much your mortgage borrowing is in relation to how much your property is worth. It’s a percentage figure that reflects the proportion of your property that is mortgaged, and the amount that is yours (the amount you own is usually called your equity).
To get a 100% LTV (no deposit) mortgage, most lenders prefer you to already be a customer (i.e. you’re remortgaging). The other option is to have a guarantor. Being a guarantor is a big commitment, as they will have to provide enough security, such as savings or their own home, to satisfy the lender.
Most lenders now have a mortgage product aimed at those with a deposit of 10% of the purchase price of their property and you may even be able to put down a deposit of just 5% in some cases.
In the Spring Budget 2021 the government announced a new 95% mortgage guarantee scheme. The scheme enables homebuyers to secure a mortgage with a 5% deposit, with the government underwriting 95% mortgage loans.