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100% LTV Mortgages and Remortgages
LTV stands for loan-to-value. This ratio is figured by dividing the amount you want to borrow by the amount your property is worth. If you want to borrow £90,000 and if your house is worth £100,000, then it is 90% LTV. 80% LTV mortgages and lower are considered low risk to lenders while 100% LTV is very high risk. Lenders reserve 100% LTV mortgages for only those borrowers with the highest credit scores. Rates on 100% LTV mortgages may be variable, fixed, capped, or discounted depending on your lender.
There are certain risks you must assess before you decide on a 100% LTV mortgage. If housing prices fall while you are in a 100% mortgage, you will have to deal with a negative equity situation. This means that the market value of your home has fallen below the amount you have left to repay on your mortgage. Another risk of taking out a 100% LTV mortgage is that lenders may charge you an above average interest rate due to the high risk nature of your mortgage.
The upside of a 100% LTV mortgage is that a large deposit is not required. This gives prospective borrowers with little to no savings the opportunity to take out a mortgage regardless of the amount their able to put down.Occasionally, people opt to take out mortgages with higher that a 100% LTV. The reason for this is that these borrowers are taking into consideration how much it will cost to fund the entire purchase of their home and all of the related expenses. While it is nice to have money to cover all of these expenses, these borrowers are at an even greater risk of falling into a negative equity situation.
Speak with an advisor to get mortgage advice before deciding on a 100% LTV mortgage. A mortgage advisor will be able to help you assess your financial situation, allowing you to have a clear and realistic idea of what the best mortgage/remortgage option is for you.
If you'd like help finding the best 100% LTV remortgage loan for you, take a minute to fill out out short questionnaire, and a SimplyFinance representative will contact you shortly to give you some mortgage advice and to introduce you to a mortgage broker. Your mortgage broker will work and search to find the best 100% LTV mortgage deal for you.
TODAY’S LOAN RATES
Today’s Average Rates for 100% LTV Remortgage
| Loan Type | Rate | APR |
|---|---|---|
| Fixed | 5.6% | 6.9% |
| Tracker | 5.64% | 5.9% |
| Discounted | 5.7% | 6.9% |
| Capped | 6.05% | 7.2% |
NEWS & ARTICLES
26 Jul 2007
100% LTV Mortgages and Remortgages
If you're looking to cover the entire cost of purchasing a home, you may want to consider a 100% LTV mortgage or remortgage. While there are some inherent downsides to this type of loan, it may be right for you. »
13 Aug 2007
Finding the Best 100% LTV Mortgage
In the United Kingdom, many people will opt for a loan to value mortgage in order to finance their home purchase, home renovation, etc. But before we delve deeper into how to go about finding the best 100% loan to value mortgage, it is important to know first of all what loan to value means.»
26 Jun 2008
Lower Fees Demanded in the Face of Declining Mortgage Approval Numbers
The mortgage market in the UK has looked better, but there are steps being taken by officials to lessen the burden on borrowers. This article talks about the current status of the mortgage market, the things being done to assist borrowers in this time of financial turmoil, and ways that borrowers can prepare themselves to go out and find the best mortgage loan for them. »
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