There seems to be more 95%LTV products around now, but how many applications actually get through at this value?

Posted on 23 July 2013 by S Ferris


Hi. There seems to be a lot more 95% LTV products out there now we are in 2013. However, how many applications are actually approved at this value? Thanks.

You are right that there are a lot more 95%LTV products this year, and it has been good to see more lenders coming back into the market as this will be of a lot more benefit to many First Time Buyers, than some of the stimulus programmes currently available.

Naturally at the higher loan to values the credit score cards used by many of the major lenders are a lot tougher and even the smallest thing can cause an application to be declined.

However the good thing about the main lenders in the 95% market at the moment is that a number of them 'credit check' rather than 'credit score'. That is to say that they will check that your credit history is satisfactory, but this won't be the be all and end all when making their decision. For example there's one lender who will look at 95%LTV upto a maximum loan of £500,000 but part of their criteria is that you need to have been in rented accomodation for 12 months. Basically they are looking at First TIme Buyers who already know how to run a household.

Because of our knowledge and strong relationships with this type of lender, our sucess rate for applications is likely to be far higher than our competitors, and also higher than if you went directly to a lender yourself.

If you'd like to talk in more detail about a 95% mortgage, then please let me know and I'll arrange a convenient time for one of our consultants to give you a call and look at the options open to you.

Regards,

Simon

simon.collins@johncharcol.co.uk

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