Are you looking for a high loan to value mortgage? In the current climate where cash is king and many are looking to preserve their personal liquidity, the prospect of securing a large mortgage with a low deposit can be very attractive for high net worth individuals.
High loan to value mortgages typically refers to property finance where the loan is around 80% of the value or above. For example, if you wanted to buy a property worth £1 million with a deposit of £200,000 or less, this will be considered as a high loan to value mortgage.
For context, the majority of UK high street lenders typically offer large loans of up to £1 million, where the loan to value is generally between 60-75% of the property value. For loans much larger than this, and especially if you’re looking for a high loan to value of 80% or above, you may need to secure a mortgage with a specialist lender or private bank that is adept at handling this area of property finance. Unlike the rigid eligibility criteria of mainstream banks, specialist lenders are able to take a much more holistic view of your finances, assets, and wealth to assess your affordability.
Working with a specialist high net worth mortgage broker such as LDNfinance is imperative to ensure you have access to private lenders that can cater to your individual circumstances and secure your high loan to value mortgage at a competitive rate. Our expert brokers have strong, long-lasting relationships within the private lending space and a deep understanding and knowledge of the rates, products, and criteria that come with it.
What to consider when securing a high loan to value mortgage
It is important to note that lenders use the loan to value ratio to quantify the level of risk associated with lending a mortgage. Therefore, the higher the loan to value, the greater the risk, and naturally, the higher the interest rate.
As such, there are some important things to consider when securing a high loan to value mortgage: many traditional banks are unable or unwilling to offer high loan to value mortgages, interest rates can be high and there are a number of factors that can affect your eligibility when securing one. One such consideration will be the assets you can use as collateral for the loan, with many private lenders willing to accept sufficient cash flow or other assets to cover their liabilities. By placing assets under management (AUM), the lender has greater security to offset the associated risk and this can often lead them to offer a higher loan to value or a more favourable rate.
We highly recommend seeking the expertise of a practised broker with strong industry contacts to assess your case and discuss your options. At LDNfinance, we have a wealth of experience in securing high loan to value mortgages of 80% LTV, 90% LTV and above for our clients at attractive rates. Working closely with our trusted network of private banks and specialist lenders that take a more holistic view of your overall wealth, our strong relationships will ensure you receive the perfect solution to help you realise your property finance aspirations, no matter the complexity.
Let’s discuss your financial position and arrange a high loan to value mortgage to suit your circumstances.