go site As a first-time buyer , you may not have a lot of money to put down as a deposit, meaning the loan-to-value you need may be quite high. During the credit crunch many people found themselves in negative equity as they had previously taken out high loan-to-value mortgages sometimes even exceeding what their property was worth on the assumption that house prices could only go up, only for them to go down.
If prices fell even more, the borrower would be in negative equity, and would end up having a higher mortgage than the property is worth. What if they then wanted to remortgage to get a better rate? This means they could end up stuck on an expensive variable rate, with no security against further interest rate rises, paying through the nose for the mortgage.
As you can see, keeping your loan-to-value as low as possible is key — particularly if you're approaching the point where you need to remortgage.
There are two ways you can influence your loan-to-value:. The less of a mortgage you have, the better. If you are on a repayment mortgage you will be reducing your mortgage balance with your payments, and could reduce your LTV in the process. You can even accelerate the repayment of your mortgage by overpaying providing your mortgage lender allows this and subject to any conditions or limits , which could put you into a lower LTV band quicker and could potentially help you clear the loan sooner.
Mortgage Term Loans are typically over 25 years, so we've defaulted to that for you.
Most loans are on a repayment basis, so we've left this as 0. Find mortgages Check your eligibility online. Call our experts for advice and to apply today on: Up to 2 years. More than 5 years.
No Early repayment charge. Confused by the options? Choosing the right mortgage for you can be really tricky. Arrange a call back. What about credit issues? Our specialist team are available on Try sorting by Annual Cost? The overall cost for comparison is 4. Overall cost for comparison 4.
Speak to an expert mortgage adviser on or check which deals you qualify for online. The overall cost for comparison is 3. Overall cost for comparison 3. The overall cost for comparison is 5. Overall cost for comparison 5. When compiling our best buy tables we compare the best mortgage rates from across the UK market, including deals that are exclusive to us.
It's important to remember that the best mortgage deals are not necessarily about getting the lowest mortgage rate possible, you also need to take into account all the fees and charges associated in setting up your new mortgage deal. Our best buy tables above show you the mortgage deals currently available, both fixed rates and variable rates, whether you are looking to purchase or remortgage.
If you need to take out a mortgage, the huge choice of deals available combined with lots of confusing jargon can be enough to make anyone nervous. What types of mortgage deals are available? There are several different kinds of mortgage to choose from. Here are the main types of deal and how they work: With a fixed rate mortgage , you sign up to a set rate for a certain period of time, usually ranging from two to five years, although it is possible to lock into longer term fixed rate deals too.
Looking for a 65% mortgage? Compare a range of 65% loan-to-value (LTV) mortgages including 65% remortgaging deals. The whole of market MSE mortgage best buys tool allows you to find the cheapest rates & fees for fixed, variable and more mortgages.
Fixed rate mortgages usually appeal to homebuyers who want certainty when budgeting. This type of mortgage, as its name suggests, usually tracks the Bank of England base rate, plus a set percentage. The main advantage of a tracker deal is that when rates are falling you will benefit, but if and when rates start to rise, so will the cost of your payments.
With an offset mortgage , you can offset any savings you have against the amount you owe on your mortgage, reducing the amount of interest you pay.
You will still have access to your savings whenever you want. Rates on offset mortgages can be slightly higher than on standard mortgages. A capped rate mortgage will have a variable rate, so your payments can go up or down, but the rate will never exceed a certain limit, or cap. For example, if a lender has a variable rate of 4. Remortgaging your home to get a batter rate?
Use our remortgage comparison tool to find a competitive mortgage.
Buying your first home? We can help you to find a low rate mortgage deal that will give you a start on the property ladder. Buying a property to let out to tenants? Use our comparison tables to find a low rate mortgage deal to suit you. Estimate how much you can borrow based on your income. If single, enter 0 in second persons income. SoSmart Money are specialists when it comes to mortgage and insurance advice. Speak to one of our experts for mortgage advice, life insurance cover, to protect your income, insurance your home or contents and private medical cover.
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