High Loan-to-Value Mortgage

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High Loan-to-Value Mortgage

A mortgage in which the ratio of the amount of the loan is relatively high compared to the value of the property securing it. For example, if the value of a house is $100,000 and the value of the mortgage is $98,000, the loan-to-value ratio is 98%, which is considered high. A high loan-to-value mortgage indicates high risk to the lender because, if it forecloses, it may not be able to sell the house for enough money to compensate itself for the principal plus interest of the original mortgage.
References in periodicals archive ?
Guarantees worth up to PS12bn will be offered to try to UNLOCK PS130bn of high loan to value mortgage lending.
So, maybe we will soon see the introduction of a new, re-engineered MIG scheme, allowing lenders to insure the risky element of a high loan to value mortgage and actually lend to all those would-be first time buyers who do not have access to the bank of mum and dad.
Recently, SFC began offering high loan to value mortgage loans (125% LTV) through its retail division.
An upturn in the number of high loan to value mortgage products for first-time buyers this year, including housebuilder and Government-backed shared equity schemes, has helped in making home ownership a reality for many thousands of people previously shut out by the banks," added Mr Lees.
David Ritchie, chief executive of Bovis Homes, said: "In the current market, the ability of purchasers, especially first-time buyers, to access high loan to value mortgage finance has been severely curtailed.
The Welsh Government and house-builders will act as guarantors so that buyers can secure high loan to value mortgages, contributing just a 5% deposit.
Rather than making funding directly available to buyers, the Welsh Government and house builders will act as guarantors so that buyers can secure high loan to value mortgages which would not otherwise be available to them.
And some great fixed rate deals and high loan to value mortgages available mean it really is the time for buyers - particularly first timers - to make a move.
The range of high loan to value mortgages also comes with zero fees, with tracker interest rates from 3.
The Government has set aside PS12bn of guarantees for up to PS130bn of high loan to value mortgages and phase two is expected to remain open for three years.