What is a 70% LTV mortgage

A 70% LTV mortgage lets you borrow up to 70% of the purchase price of a property.

You pay the remaining 30% as a deposit before you start paying your mortgage.

If you’re remortgaging, the 30% could be the equity in your home if:

  • you’ve repaid enough of your current mortgage

  • it’s gone up in value enough

LTV stands for loan to value.

It’s the ratio between the loan you take out and the value of the home.

The higher the LTV, the higher the interest rate you’ll pay as the risk to the lender goes up when you borrow more.

Ask a broker to help you find the best deal. Some, like Trussle, don’t charge a fee.

70% LTV buy to let mortgages

You could get a 70% LTV buy to let mortgage to:

  • buy a new property to rent out

  • remortgage to get a better deal

The highest LTV buy to let mortgages are 85% and they’re hard to get. 

So you’ll have a lot more choice if you want to take out a 70% LTV buy to let mortgage and the rate will be cheaper as there’s less risk to the lender.

Some lenders have withdrawn certain buy to let mortgages, or left the market entirely, because of the coronavirus.

Speak to a mortgage broker to find which lenders are still offering buy to let deals.

70% LTV 5 year fixed mortgages

A 70% LTV 5 year fixed rate mortgage might suit you if you want to know exactly what you’ll pay each month for the next 5 years.

Rates for a 5 year fixed mortgage are usually higher than for a 2 year fixed mortgage.

So you could take out a 2 year fixed rate mortgage at a lower rate then take out another fixed rate mortgage.

By the time you take out the second fixed rate mortgage you’ll need to borrow less and your LTV may be lower.

Should I get a 70% LTV mortgage

A 70% LTV mortgage could be an option if you’ve got 30% of the purchase price to put down as a deposit.

The recommended deposit is about 20%, so you’re in a good position.¹

There’s usually plenty of choice when it comes to 70% LTV mortgages, so shop around for the best deal.

How to get the best 70% LTV mortgage

The best 70% LTV deals have lower interest rates and lower fees.

There’s usually a lot of choice with 70% LTV mortgage deals. But some lenders have reduced their range because of the coronavirus.

A broker can find the right 70% LTV mortgage deal for you.

Trussle, for example, works with 90 lenders offering about 12,000 deals.

Make sure you know how much a mortgage will really cost you before taking it out. 

This is known as the true cost. It’s the total amount you'll pay back over the initial fixed or discounted period.

Add up the interest, capital repayments and fees, then take away any incentives the lender’s offering, like cashback.

Or you can ask a broker to help you.

All mortgage guides, calculators and deals

Source

¹ Money Advice Service: How much deposit do I need for a mortgage?

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Your home could be repossessed if you don't keep up repayments on your mortgage.

You may have to pay an early repayment charge to your existing lender if you remortgage.

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