Especially in desirable and expensive areas such as London, many first-time buyers find themselves needing increasingly large loans just to get a foot on the property market. The average house price in the capital is now in excess of £500,000, which can make saving for a significant deposit a real challenge.
Unfortunately, many large loans require a similarly large deposit for the lender’s security. Lenders want to see that borrowers have a significant vested interest in the property, but this is not always possible without waiting years to save a deposit. As such, the panel of lenders willing to consider high loan to value (LTV) mortgages (typically, 80%, 85% and upwards)—particularly over £1million—is heavily restricted.
However, we have access to rates which can make this eminently achievable. This week’s product of the week is a 2-year fixed product offering a low rate of 1.33%, available at up to 80% LTV. This product is ideal for first-time buyers who are looking for a high LTV on a large loan. The same rate and LTV can also be secured for clients who are looking to remortgage their properties.
First time buyers aren’t the only potential clients who could benefit from this loan. This would also benefit clients looking to remortgage without a lot of equity, or clients with a high net worth who are illiquid for various reasons and therefore unwilling to put down a large deposit.
This product also offers free valuation costs and legal fees for both new purchases and remortgages, potentially saving you a significant sum.
- 1.33% 2-year fixed
- 80% LTV
- Loans up to £2million
- Free valuation and legal fees
If you are looking for a higher loan to value—say, 85%— this lender can also accommodate for this at a slightly higher rate.
We have an excellent relationship with this lender—I have recently secured this rate for a couple of clients—and as such we are able to present your case to them in such a way as to ensure the success of your application. Securing a high loan to value mortgage can be a challenge, especially for large loans—but Enness have an excellent track record of achieving this for our clients.