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.
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References in periodicals archive ?
Guarantees worth up to PS12bn will be offered to try to UNLOCK PS130bn of high loan to value mortgage lending.
"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.
Philip said: "Because of the banking crisis, banks had become very nervous about giving high loan to value mortgages.
This decline was not anticipated and is said to be a reaction to a new policy from the Bank of England in its effort to limit the number of high loan to value mortgages, introduced at the end of June.
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.
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.