If a mortgage lender advertises nothing less than LTV 90% would it be worth asking for 95% or...?

Question

do these places stick to rules?

Answer 1

Yes, they do not change their rules, so if they advertise 90 % Loan To Value, they will lend at 95 % LTV. You should speak to a broker who offers free advice as a few lenders still lend on 95 % LTV.

Answer 2

In the UK you would need to find another lender.

its not worth the hassle to NEGOTIATE for a higher LTV.

Answer 3

Only in very exceptional circumstances do UK lenders lend above the published maximum LTV levels. In the current tightening credit situation...if they advertise 90% max....they mean it....don't waste your time trying for more.

Look online for another lender prepared to offer 95%....unfortunately there are fewer and fewer im afraid.

You are left with two choices -

1) Come up with the rest of the deposit if you can. This is by far the best option if you can find the money....the rates are much lower compared to higher LTV products.

2) Find someone to lend you 95% LTV - but if you use a broker...make sure you use a 'whole of market' broker....who can then give you the best price around.

Good Luck  

Answer 4

One of the reasons for the credit crunch is due to unscrupulous financial advisers who are only interested in the commission they earn and not in ensuring that the person / couple can actually afford to replay the mortgage.

Lenders have now clamped down, in order to get a legitimate 95% mortgage there are only 2 lenders offering this but their criteria are extremely strong.  A better way to achieve this would be to ask the vendor to pay part of the deposit rather than reduce the price of the house.