What Is a High Loan-to-Value Mortgage?
A high loan-to-value (LTV) mortgage is a loan where you borrow a large percentage of your home’s value—typically 90% or 95%. That means you only need a 5–10% deposit, making it an attractive option for first-time buyers and those with limited savings. Some lenders will even go to 100% now but it isn’t without risk!
The Pros of High LTV Mortgages
✅ Lower Deposit Needed – Buy with as little as 5% down
✅ Access to Property Sooner – Skip years of saving
✅ Government support – Schemes like the Mortgage Guarantee Scheme back 95% LTV products
The Cons You Should Know
❌ Higher Interest Rates – More risk for lenders = higher cost for you
❌ Lower Chance of Approval – You’ll need a clean credit record
❌ Negative Equity Risk – If house prices fall, you could owe more than your home is worth
Who Are High LTV Mortgages Best For?
- First-time buyers with stable income but limited savings
- Younger buyers entering the market
- Applicants with strong credit profiles
Tips for Getting Approved
- Avoid large recent debts or missed payments
- Use a mortgage broker to access specialist lenders
- Consider guarantor options if applicable
Final Thoughts
A high LTV mortgage could be the key to stepping onto the property ladder—but it’s not the right fit for everyone. Weigh the pros and cons carefully, and speak with an expert who can find a deal that matches your financial situation.
Looking for a 95% mortgage? Let us help you find a competitive deal today.
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