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 ?
Excluding the acquisition of high loan-to-value mortgages in the third quarter of 1997, IFC's loan acquisitions increased 7% to $604.
Chairman of Redrow, Steve Morgan, has hit out at 'Nimbys' and called for the return of high loan-to-value mortgages
The withdrawal next March of the stamp duty land tax holiday for first-time buyers on purchases up to pounds 250,000, combined with the better availability of high loan-to-value mortgages, could see a modest increase in first-time buyer purchases over the next three months, with a possible fall off later.
is a startup specialty insurer of high loan-to-value mortgages, second mortgages and manufactured housing loans; the company is well capitalized for the rating and enjoys substantial explicit support from Radian Guaranty.
This transaction demonstrates an interest in high loan-to-value mortgages in a secondary market other than the securitization market," said Daniel T.
Many experts believe that the use of high loan-to-value mortgages played a key part in causing the credit crunch, with some mortgage lenders offering buyers up to 125% of the value of a property.
Given the competitive environment within the mortgage insurance industry, however, PMI, like many of its competitors, has followed the market into new product offerings in less traditional sectors of the mortgage industry that carry greater risk, such as high loan-to-value mortgages, sub prime mortgages, reduced documentation mortgages and mezzanine-layered credit enhancement on residential mortgage-backed securities (RMBS).
Mr James said that recently Your Move reported a 32% increase in the number of high loan-to-value mortgages taken out by its customers, many of whom were first-time buyers who previously struggled to enter the property market.
With this in mind they anticipate slightly less demanding credit scoring for home-buyers who apply for relatively high loan-to-value mortgages.
specialty insurer of high loan-to-value mortgages, second mortgages,
This is due to a decline in the availability of high loan-to-value mortgages, rising inflation, persistently high house prices (the average house price in Tyne and Wear, for example, is around pounds 138,000), low interest rates and unemployment, which, by the end of 2011, had hit its highest level since 1994.