8 Jul

High LTV mortgages 'depend on credit rating'

High LTV mortgages 'depend on credit rating'

First-time buyers looking for properties for sale will be able to get a higher loan-to-value (LTV) mortgage if they have good credit ratings, an expert has said.

Mortgage adviser John Charcol's senior technical manager Ray Boulger has stated that there are a number of good 90 per cent LTV mortgages available at the moment - meaning that homebuyers would be able to buy property with just a ten per cent deposit.

However, Mr Boulger added that in order for buyers to be accepted for these loans, they require good credit ratings.

He said: "[Lenders] demand a much higher credit score if you are borrowing a higher percentage [of the mortgage]."

The financial adviser added that people looking to borrow under 75 per cent are more likely to be accepted in their mortgage application.

This comes after Zoopla revealed that 77 per cent of people consider loan restrictions to be the biggest threat to the property market, while 78 per cent of homeowners think that house prices will rise over the remainder of the year.
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