There are a wide-range of 75% mortgages available with great interest rates for those looking to remortgage or first-time buyers.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
Anyone who has a deposit totalling 25% of the value of the property they wish to buy can get a 75% LTV mortgage.
The mortgage rates that will be available to you are set by LTV thresholds. A 75% LTV mortgage is in the mid-range of mortgage LTV thresholds.
LTV stands for ‘loan to value’ and means the difference between the size of your deposit and the size of the mortgage.
Lower LTVs require larger deposits and vice versa. The lower your LTV, the less risky a borrower you are deemed by lenders. This means you will enjoy a lower interest rate and in turn lower monthly repayments.
75% LTV mortgages are in the middle range of LTV thresholds, giving cheaper rates than the higher LTV mortgages of 80% and above.
Raising a 25% deposit will be achievable by many people, but is still likely to require many years of saving, or funds raised from moving house.
75% LTV mortgages are a sensible threshold to aim for (even for first time buyers) as the interest rates and monthly repayments will be considerably more manageable than those available with 80-95% LTV mortgages.
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