daft question LTV

benjo

I have read alot here and on various bank/BS sites about LTV and many people seem to quote figures like 90% LTV or 85% LTV 75% LTV and 60% LTV.

Now I understand that the bigger your deposit the lower your LTV, the lower your LTV the better the rates you get and the more chance you have of being accepted for a mortgage. In order to understand how the rate applies to yourself, you simply work out the % deposit you are paying and look on the mortgage website for the rate that goes along with that.

What happens if you have a 38% deposit, 62% LTV - how do the rates apply? (does that make sense?) would lenders be generous and apply the 60% LTV rates since it is very close to that or is there some kind of sliding scale? (if there is I havent found one) or would the next highest rate apply?

Would be grateful if anyone knows.

Many thanks in anticipation of you taking time to answer my daft question.

Robert_Sterling_3

If you have got a 38% Deposit then you would not have 60% LTV.

benjo

yes, I got that part, 38 + 60 = 98, I didnt explain very well did I, all the information I have read about interest rates say things like

4.5% interest for a 60% LTV or 5.7% for an 85% LTV (these figures are only an example),

however if I have a 38% deposit, meaning my LTV will be 62%, what interest rates do you think they will quote me? the ones that they give for 60% (since 62% is close) or the 'next rate up 75%' or is there a sliding scale for those people who fit somewhere in between?

Hope that explains the question a little more clearly - if it doesnt, feel free to /e slap me:rotfl:

beecher

No - if they say an LTV of 60% they mean up to 60% so you wouldn't qualify. You'd be looking at the up to 75% rates.

koexelek

benjo wrote: »

What happens if you have a 38% deposit, 62% LTV - how do the rates apply? (does that make sense?) would lenders be generous and apply the 60% LTV rates since it is very close to that

You don't know the lenders very well. It it came in at 59% they would be trying to downvalue the property to get the LTV above 60%:rolleyes:

benjo

thanks beecher, thats a clearer answer by a mile than my garbled question.

Quote:
Originally Posted by benjo

What happens if you have a 38% deposit, 62% LTV - how do the rates apply? (does that make sense?) would lenders be generous and apply the 60% LTV rates since it is very close to that

You don't know the lenders very well. It it came in at 59% they would be trying to downvalue the property to get the LTV above 60%:rolleyes:

:eek: I suspected this would be the case Koexelek but I appreciate knowing for sure.

b0rker

benjo wrote: »

would lenders be generous

Unequivocally, no.