95% loan-to-value mortgage borrowers paying £300 more each month
Borrowers taking 95% loan-to-value mortgages are paying nearly £300 more per month than those at 75% loan-to-value, according to AmTrust’s Moneyfacts LTV Tracker.
The report says borrowers with a 5% deposit pay an average of £762 in monthly repayments, £294 more than the £468 paid by those with a 25% deposit. It also points out the difference between the rates is just over 2%.
Aaron Strutt, product director at Trinity Financial, says: “The lenders work out the pay rate using the size of the deposit, so the more money you can put towards the transaction the cheaper the rate.
“It is worth working out exactly how much money you would need to raise to qualify for the cheaper loan-to-value bracket, sometimes you only need to add a minimal amount to access a considerably cheaper rate.”
You will need a deposit of at least 5% to qualify for the lowest deposit mortgages, but the 10% deposit rates are noticeably lower.
To secure a low deposit mortgage call Trinity Financial on 020 7016 0790.
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