Changing LTV

dwill1503

We own a house worth £180k with a mortgage of £97k giving an LTV of 53% (it was 88% 7 years ago).

We would like to clear some debt and would like to know what happens if we sell the house and buy a house in a different location that is only £100k?

What does this do to the LTV - would we need to keep it at 53% or within the 88%

Thank you

amnblog

You do not have to keep within 53% LTV.


Your options will depend on the lender, and your circumstances - the whole case will be considered afresh.


You may be able to keep the product, if so the product will not be a barrier to a higher loan to value.

lee111s

The LTV depends on what you put down as a deposit on the new house.

If you put down 50k on a 100k house then you LTV would be 50% as you're borrowing 50% of the propery value.