Your loan to value LTV is the size of your mortgage as a percent of the total property value. Usually, the lower your LTV, the lower interest rates you can get. Fixed rate: your interest rate ie what you pay each month is guaranteed over a fixed period of time, and won't change. Variable rate: your interest rate could go up or down, so what you pay each month could change. During the initial period, you get a discount on your variable rate. For the first few years of your mortgage, you'll get a lower than standard interest rate.
Think of it like an introductory offer from your lender. You can set how long this lasts here. The total length of your loan — how many years you'll take to pay back your mortgage. LTV is important to think about because it determines the mortgage rate, and affects how lenders calculate whether the mortgage is affordable for you.
A mortgage expert can talk this through with you. 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. Find out if you're eligle in a couple of clicks, with no hidden credit checks. Before You Continue…. Finding a mortgage lender during Covid 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.
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Getting your first mortgage will likely be a long time in the making. You'll need to make sure that your credit score is up to scratch, too, because if not, no amount of savings will guarantee you'll be accepted. Once you're confident you've got the savings and the credit score you need, it's time to get searching! Before you apply for a mortgage it's important to check your credit score. Bear in mind that the lender will want the new property valued, and if it's worth more than your current home, you may have to borrow more to secure the mortgage against it, which could result in further affordability checks.
You may also have to pay a transfer fee to port the mortgage, so make sure to factor this into your moving costs. Discover the best UK policies and contracts with the help of Moneyfacts. Learn more and apply direct today. Home insurance. Home emergency cover. Switching energy supplier when moving home. This will be a vital consideration whether you're getting your first mortgage, are remortgaging or want to move home, and one that's often based on personal preference, but it's important to choose wisely.
If you're still not sure what kind of mortgage is right for you, you could consider using a mortgage broker. This is where heading to a broker or specialist financial a dviser can come in, as they'll be able to help you narrow down the options, and if you're struggling, you may want to consider the Help to Buy equity loan scheme.
Lenders view higher LTV lending as riskier given the size of the loan and the resulting repayments, which is why it's so important to make certain that you can afford the repayments — both now and should rates rise in the future — and why lenders are so strict with their criteria.
Then there's the risk of negative equity. This is why making overpayments is often recommended if you can afford to, giving you the chance to reduce interest payments and even remortgage to a lower LTV. Providers are giving you a hefty amount of money in relation to the value of the property, which puts their loan at greater risk should you default, and as a result they're asking you to pay more for the privilege. As a rule, no, at least not if you're a first-time landlord.
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Our guide explains what you need to do with your energy supply when moving home. Read more for our tips on how to keep the stress out of your home move and energy switch. Read more for our tips on how to keep the stress out of your energy switch.
Our guide to the different types of income you can use when applying for a mortgage. Our guide to the different fees you may encounter when applying for a mortgage. This includes tracking cookies. Compare Mortgages. Property Value. Full Search. Sort By Rate Rate. Advanced Search Options. Mortgage Amount. Mortgage Term.
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