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October 7, 2020
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Remortgaging is the ideal time to save a lot of money, and getting a 70% LTV mortgage should help with that.
When you remortgage you have a chance to switch LTV bands and apply for a cheaper rate.
A 70% mortgage is a very competitive loan-to-value ratio, and that means many banks and lenders will compete for your business, increasing your choice. This is because you aren't seen as that risky by a lender as your property value is almost a third higher than the amount they are lending you.
An 70% loan-to-value (LTV) mortgage is simply when you put down a 30% deposit for your house and the mortgage covers the rest.
When remortgaging, it is slightly different as you won't really be dealing with deposits.
However, to get a lender's 70% LTV rates, you simply need your loan to not be higher than 70% of the value of your house. When remortgaging it's important to remember that's the current value of your house, not what you paid for it 2, 3, or 5 years ago when you originally got your mortgage.
In terms of LTV tiers, 70% sits in the middle with 95% the most expensive and 60% usually the least expensive.
If you have a lower rate, you'll pay less interest and your monthly repayments should fall after you remortgage.
If you wan to borrow a set amount at a 70% LTV rate, your property needs to be valued accordingly. Also, note, that you still need to pass eligibility and affordability checks.
It depends on the lender and your circumstances, LTV is a big influencer on your final rate, but it is not the only thing lenders will look at before deciding your rate.
However, currently 70% LTV rates are around 1.3% for a fixed period of 2 years.
Always look at the total cost however, because some fees can inflate the real rate. Your expert Mojo adviser can help you do this.
Yes. There's a good chance, as you represent less risk to a lender, your valuation will still be carried out and you can remortgage with no disruption.
Yes. You just need to save up a 30% deposit. A Help to Buy equity loan may help get you there, but you will also need to pay that back at some point.
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