Recent mortgage Q&A
85% Loan to value mortgages
An 85% mortgage means that you’ll need a 15% deposit to put down against the purchase of your home. This means a contribution of 15% of the property buying price and that you’ll need to have additional funds to pay for additional costs such as stamp duty, conveyancing and moving costs etc.
Why get an 85% loan to value (LTV) mortgage?
Being able to raise a 15% deposit will mean that there are lenders and mortgage products to choose from that offer better rates when compared to 95% deals and 90% mortgage deals. Having a larger deposit will mean you’ll benefit from better rates and more choice of lenders. Therefore as long as you have the money to put down then choosing an 85% mortgage product over a 90% product will save you money in interest fees.
What are the draw backs?
The only drawback to making a 15% deposit is that you would probably get a better rate of interest if you could afford a 20 or 25% deposit and so on. However many people only put down what they can afford and a 15% deposit is a good deposit particularly for a first time buyer in todays housing market.
Where can I find out what 85% LTV mortgages are available?
Our mortgage comparison tools here on the website display all of the 85% mortgage products from the whole UK market. This means we have access to every product available. Simply carry out a search and compare the deals and rates side-by-side to see who is offering the cheapest rates.
Can I get a mortgage if I have a bad credit history or low credit score?
If you have a history of missed payments, CCJ’s or you know you have a low credit score then the best advice would be to speak to a bad credit mortgage expert here on the website. They have a detailed understanding of the lenders who are willing to borrow to those with a not so perfect credit score.
Where can I find further advice?
If you need to speak to someone then we recommend you speak to a mortgage expert here on the website. Their advice is free and they have access to all the mortgages and rates available.
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