Can I get a 90% LTV mortgage after Covid-19?
As lockdown went into motion and businesses began to temporarily close to minimise the spread of Coronavirus, lenders and banks limited loans and removed mortgage products.
However, now that physical valuations are allowed to take place, a select number of lenders have resumed residential lending with up to 90% LTV rates.
Where are the residential mortgage lenders with 90% LTV mortgages?
Residential mortgages up to 90% LTV will be available and temporary limits on loan sizes and property values will be withdrawn, meaning there will be a return to previous maximum loan sizes.
This could be great news for borrowers who have been waiting for the lenders to expand their product variety, thus providing more choice and potentially better rates.
The amount of lenders willing to provide such substantial loans is limited and applicants with credit issues or low income might find it more difficult to meet eligibility criteria.
Most lenders will look at income to calculate whether or not you can afford to repay your residential mortgage, so if you’ve recently been furloughed or have lost your income, you too may also find it more tasking to find a lender.
The good news is that you don’t have to search the market yourself and a broker can point you in the right direction, assisting you every step of the way to help you successfully gain approval for a residential mortgage.
What LTVs can I expect for a New Build mortgage?
Construction workers and housing developers have been given permission to go back to work by the Government, with all parties keen to meet the demand for new housing in the UK.
Some lenders had previously pulled products with competitive LTV rates but with the market progressing, lenders are now providing New Build mortgages with LTVs between 80 - 85%.
The rate you are offered by any lender for New Build mortgage will vary depending on your own circumstances, which essentially means that if you’re deemed as a risky borrower, lenders might reduce the amount they’re willing to lend to you.
Getting the right advice about which lenders to approach can help you avoid mistakes on your application and can also speed up the process, saving you the hassle of comparing multiple lenders.
What are the LTV rates for Help to Buy mortgages now?
The appetite to loan large amounts to first-time buyers will vary amongst lenders. Some who specialise in Help to Buy mortgages may be able to offer 75% of the market value of the property being purchased, though again, your own circumstances will affect the amount you can borrow.
We have Help to Buy specialists in-house who know the lenders across the UK offering the most competitive LTV rates. They can assess your eligibility for relevant lenders and check mortgage agreements for any unfavourable terms and conditions that could affect your affordability later down the line.
Our brokers can also find the Help to Buy lenders with the best incentives, whether that be cash back, free valuations or arrangement fees.
Can I get a buy-to-let mortgage with a 90% LTV after Covid-19?
The economical effects of Coronavirus are uncertain which is bad news for lenders who ideally want to lend money to borrowers who are financially stable and thus able to repay their loan.
However, the property market has reopened and despite caution, there are some lenders who may be willing to loan up to 80% LTV rates for buy-to-let, in the right circumstances.
BTL mortgages are by nature more risky to lenders as often the repayments are reliant on the borrower finding tenants. This is why BTL lenders often restrict their LTV ratios, though don’t let that put you off.
Every lender will have a different stance on what they deem as a risky borrower, so even if a BTL lender has rejected you in the past, there could be an alternative option.
Finding a mortgage lender during Covid-19
Our brokers have access to a competitive range of options but will only ever recommend mortgage products that are affordable with terms that work for you.
The experts we work with value your time and get to know what it is you really want from a mortgage. They’ll ask you to provide accurate and up-to-date information because that’s what helps them find you the most relevant and affordable mortgage.
Whether you need to finance a residential, New Build, buy-to-let or remortgage, you can rely on The Mortgage Hut to always provide clear and confidential advice.