8
Jul
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.
