Mortgages and Ltv's, help appreciated!

chipz2803

I couldn't find any info on this so hence the thread and question!
Is it easier to get a mortgage with a lower Ltv on my home? I understand I can get a cheaper mortgage with a low Ltv.
Say I had an Ltv of 60%, would this be easier to get a mortgage from a lender than say a 90% Ltv? Thanks and sorry if this has been asked before. We currently pay upto £200 per week off our mortgage on a five year fix that ends in two years, then we will be remortgaging to get a better deal.

Thrugelmir

The amount you can afford to borrow has more impact than the LTV. Interest rates are lower for better LTV's. As the risk of loss for the lender is greatly reduced.

Overpaying has a number of benefits. Not least that should interest rates rise you'll owe less. Which will reduce the impact on your monthly outgoings.

chipz2803

Hi thanks for the reply, it makes sense that if my mortgage is down to 80k in two years time when fixed ends, then I'd have a better chance if getting a remortgage?! Yes?

Thrugelmir

Firstly check what your existing lender will offer you in terms of a new product. Remortgaging to a new lender comes at a cost. As your mortgage balance reduces the benefit of switching lender likewise diminishes. With any saving outweighed by the switching cost.