A 65% mortgage is a very competitive loan-to-value ratio, so there are a huge range of mortgage products available.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
If you can put down a deposit of at 35% of your property’s value you are eligible to apply for a 65% LTV mortgage.
Mortgages rates are determined by LTV values, which are set at incremental thresholds between 60% and 100%. The rates offered become more or less expensive depending on the threshold, 65% LTV are near the cheapest.
LTV, which stands for loan to value ratio, is size of your deposit against the amount of money you will need to borrow to purchase the property you’re planning to buy.
If you can put down a bigger deposit your LTV will be correspondingly lower. This is important because a lower LTV will get you a lower interest rate and cheaper monthly repayments.
65% LTV mortgages tend to be the second lowest threshold offered, giving very cheap rates, but not the cheapest.
Raising a 35% deposit takes most people many years of saving, or will be raised by the sale of their last home, so it’s rare for first time buyers to be able to apply for a 65% LTV mortgage.
If you are moving, downsizing to a lower value home could see you get a bigger deposit and make a 65% LTV mortgage a possibility.
If you’re 65% LTV mortgage is worth it in the long term as the lower rates and lower repayments could save you thousands, even tens of thousands.
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