If you are a first time buyer with a fairly high deposit available or are looking to re-mortgage having paid off a fairly significant amount of your existing mortgage, then a low LTV mortgage could be for you. A low loan to value (LTV) mortgage would involve paying a larger deposit than a high LTV mortgage, normally in exchange for a significantly cheaper interest rate. If you are looking for a low LTV mortgage, you are likely to find that there are a number of competitively priced deals that could be available to you.
The key to getting the best possible deal on low LTV mortgages is usually to shop around with a number of different lenders and compare mortgages to see who could offer you the most favourable mortgage deal.
As you search for a low LTV mortgage, you may wish to refer to our mortgage comparison tables above. When comparing mortgage deals, there are several options that you may wish to consider; these include the following:
Repayment options – Customers may choose either an Interest Only or Repayment agreement, their details can be found below:
- Repayment mortgages require you to pay monthly payments of capital plus interest until the end of the mortgage term.
- Interest Only mortgages allow you to repay only the interest on your mortgage every month. Although at the same time, you will be expected to pay into a long-term savings plan, as the starting loan must be repaid in full at the end of the agreed term
There is also a variety of interest rate options available to customers, here are two examples of some of the most popular types that are commonly sold:
This type of interest rate tracks the Bank of England base interest rate, meaning that it could move up or down accordingly.
This type of interest rate is set at a certain amount for a specified period of time, after which it would usually revert to the lender’s standard variable rate (SVR).