I Want a High Loan-to-value (LTV) Mortgage. Can I Get One?
Usually, yes, but there are limitations and restrictions. What you can borrow will depend on the type of property you want to buy and its cost. The more expensive the property and the more you want to borrow to buy it, the harder it will be to get a high LTV mortgage.
Usually, borrowing £500,000 or more with a high LTV is where things start to get more challenging if you need a mortgage. For high LTV mortgages of this amount and above, some lenders can accommodate you. Still, they can be restrictive, and those open to lending have relatively strict lending criteria.
How Does Enness Approach High LTV Mortgages?
If you want a high LTV mortgage, Enness will look at your assets and identify which of these a lender could use as collateral. Depending on the assets you can provide, it is possible to secure as much as 100% of the property purchase price if that’s what you are looking to do.
Lenders always look closely at how affordable a mortgage is, and this will be especially important if you opt for a high LTV mortgage. No matter the total value of your assets or overall wealth, if you can’t easily make monthly repayments or your income is very sporadic, a high LTV will be out of the question.
As well as knowing who to approach, Enness will also be able to help you present your case to lenders in the best possible light. Often, there is a logical reason why you need a high LTV mortgage (i.e., you have a good, regular income and significant invested wealth or property, but little cash saved). Helping lenders understand your background and why you want this type of mortgage is often helpful, especially if you have a good reason for not being able to put a deposit down.
When it comes to high LTV mortgages, the details matter. Things like an upcoming bonus, portfolio income and rental income in addition to your salary will make all the difference. Naturally, lenders are more receptive to borrowers with liquid assets than someone who has no assets but who wants a high LTV mortgage regardless.
How Much Can I Borrow?
In exceptional circumstances and for individuals with a certain profile, Enness can negotiate 100% LTV mortgages. However, these are increasingly rare as banks look to effectively share more risk with borrowers. Just a couple of lenders in the whole market offer this type of mortgage. Lenders usually only accept introductions from established third parties like Enness, who will provide additional confidence in your seriousness and background. These lenders don’t publicise that they offer 100% mortgages, and even if you were able to approach them directly, they are unlikely to consider you without a formal introduction.
90% LTV mortgages are challenging if you want to borrow £1 million or more, but they are easier to obtain than 100% mortgages. Private banks tend to be the go-to operators in this
space. As well as presenting a persuasive case to lenders, Enness will also be able to negotiate flexible terms for you, i.e., no fees for early repayment, if this will make sense for you.
High LTV mortgages in the 80-90% zone come with more options as both mainstream lenders and private banks offer mortgages in this range. As with the highest LTV mortgages, your profile, assets and overall wealth really open doors and give you a wider choice of lenders. Again, introductions to lenders will make all the difference: you will benefit from more flexibility, a tailored deal and often, significantly better rates.
Contact Enness
Enness can help you secure a competitive high LTV mortgage. Get in touch to discuss your needs and to find out how Enness’ expert team of brokers can help you.
