High Loan-to-Value Mortgage

(redirected from High Loan to Value Mortgages)

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 ?
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.
Well, because for all the problems with old-style MIGs, they did at least enable borrowers (and particularly first time buyers) to obtain the high loan to value mortgages they needed.
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.
Rather than funding being made directly available to buyers, the Welsh Government and house builders will act as guarantors so that buyers can secure high loan to value mortgages that would not otherwise be available to them.
Lord Turner said: "Both some customers and some lenders relied on the assumption that ever rising house prices would reduce the risks otherwise inherent in high loan to value mortgages.
But what is most significant, he added, is that there is no higher lending fee, often applied to 100 per cent or high loan to value mortgages.
It highlighted concern over the availability of mortgages in particular, reporting that mortgage issues, particularly the poor availability of high loan to value mortgages, was the overwhelming cause of prospective buyers having to cancel house purchases.