A 70% mortgage is a very competitive loan-to-value ratio, so there are a huge range of mortgage products available.
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You are eligible for a 70% LTV mortgage if you can put down a deposit of 30% of the value of the property you’re intend to buy.
LTV thresholds decide the mortgage rates you can apply for, a 70% LTV mortgage is at the lower-mid end of LTV values.
LTV is your loan to value ratio, which is the ratio of the deposit you can put down against how much you will need to borrow with a mortgage to purchase a property.
The bigger the deposit you can put down, the lower your LTV will be. As you’re deemed a less risky borrower if you have a lower LTV, you will enjoy a lower interest rate which mean cheaper monthly repayments.
70% LTV mortgages sit in the low to mid range of LTV thresholds, giving relatively cheap rates.
A 30% deposit is worth aiming for. As 70% LTV mortgages offer manageably low interest rates and monthly repayments.
It’s not unfeasible for even first time buyers to be able to save up enough to be apply for a 70% LTV mortgage. A 30% deposit for the average UK home (which costs around £180,000), will be £54,000. Though, more often 70% LTV mortgages are aimed more at those moving home or remortgaging.
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