Compare 100% LTV mortgages
Why are you looking for a mortgage?
Loughborough 2 year discount
Repayment mortgage of £280,000 over 25 years, representative APRC 5%. Repayments: 24 months of £1,342.40 at 3.1% (discount), then 276 months of £1,667.49 at 5.34% (variable). Total amount payable £492,444.84 which includes interest of £212,444.84. Early repayment charges apply. Fees are assumed to be paid upfront. Other fees may apply.
Eligibility
You must meet the following criteria in order to get this loan:
Are resident of England
Are resident of Wales
Are older than 18 years
Available Direct.
Max age at term end: 80 years
Additional criteria may apply.
Loughborough 2 year discount
Repayment mortgage of £280,000 over 25 years, representative APRC 5.1%. Repayments: 24 months of £1,364.49 at 3.25% (discount), then 276 months of £1,669.36 at 5.34% (variable). Total amount payable £493,990.12 which includes interest of £213,491.12. Completion Fee (£499) paid on completion. Early repayment charges apply. Fees are assumed to be paid upfront. Other fees may apply.
Eligibility
You must meet the following criteria in order to get this loan:
Are resident of England
Are resident of Wales
Are older than 18 years
Available Direct.
Max age at term end: 80 years
Additional criteria may apply.
Loughborough 3 year fixed
Repayment mortgage of £280,000 over 25 years, representative APRC 4.9%. Repayments: 36 months of £1,400.24 at 3.49% (fixed), then 264 months of £1,661.85 at 5.34% (variable). Total amount payable £489,137.04 which includes interest of £209,137.04. Early repayment charges apply. Fees are assumed to be paid upfront. Other fees may apply.
Eligibility
You must meet the following criteria in order to get this loan:
Are resident of England
Are resident of Wales
Are older than 18 years
Available Direct.
Max age at term end: 80 years
Additional criteria may apply.
Loughborough 3 year fixed
Repayment mortgage of £280,000 over 25 years, representative APRC 5%. Repayments: 36 months of £1,439.57 at 3.75% (fixed), then 264 months of £1,666.53 at 5.34% (variable). Total amount payable £492,487.44 which includes interest of £211,788.44. Completion Fee (£699) with an option to add to the loan. Early repayment charges apply. Fees are assumed to be paid upfront. Other fees may apply.
Eligibility
You must meet the following criteria in order to get this loan:
Are resident of England
Are resident of Wales
Are older than 18 years
Available Direct.
Max age at term end: 80 years
Additional criteria may apply.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
How to get a 100% LTV mortgage
A 100% loan to value (LTV) mortgage is one of the most controversial types of mortgage available, not to mention one of the most difficult to be approved for. But how does it work and what should you be aware of?
What is a 100% LTV mortgage?
A typical mortgage will be based on how much the lender can afford to lend you at a given rate. If you earn £30,000 a year, a lender will usually be able to lend you four times that – £120,000.
If you had £21,000 saved, for example, you would be able to add that to the total you can borrow to get a property. So in this example, a £140,000 house with £119,000 of borrowing is an 85% LTV, as the ratio of borrowing to house value is 85%.
But what if you are buying a house with no deposit? What if you want to borrow the full 100%? That’s what a 100% LTV mortgage is for.
Can I get a 100% mortgage in the UK?
As 100% mortgages are high-risk they are often limited. They may be limited to existing borrowers, or in some cases they are released in only a limited amount to help restrict the overall risk the lender is taking on.
In most cases, 100% LTV mortgages may be available only if you have a guarantor – namely someone willing to take on the risk associated with the mortgage.
This means that they will take responsibility if you fail to keep up your payments, but this could lead to them having their home own repossessed.
What are the risks of a zero deposit mortgage?
Unlike a typical mortgage, a 100% LTV requires no up-front deposit. While this is fantastic for those with no savings looking to get on the property ladder, it does typically mean the lender will charge a higher level of interest to compensate for the additional risk.
Therefore, if you do have a deposit you are more likely to get a cheaper mortgage overall by putting forward some money and going for a lower LTV mortgage.
What is negative equity?
Because you have borrowed 100% of the value of the property, a fall in the value of the property will mean you suddenly owe more than it is worth. This is called negative equity.
House prices generally rise over the long term, but until prices pick up again you will find it hard to move, because the money you’ll receive from the buyer won’t cover the mortgage costs you need to pay back to your lender.
And the lender is taking a risk, because in the unfortunate situation of needing to repossess your property, it will be seizing an asset that is worth less than the outstanding loan.
Looking for a different LTV mortgage deal?
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