www.quickloansget.com Most borrowers today who are thinking about investing in a
commercial property would want to find a mortgage plan where they would
have to put in the least possible amount as a deposit. For this reason,
almost everyone is looking for lenders that offer 85% loan to value
commercial mortgages. However, mortgages with high LTV are not really
that easy to find since there are not many lenders today that are
willing to offer an LTV above 70%.
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Why are lenders reluctant to offer higher LTV?
There are several reasons why lenders today do not wish to offer 85% loan to value commercial mortgages. Commercial mortgages, like any other mortgage would be secured against a property. With the housing market crashing worldwide and the prices of properties declining quite fast, the lenders today do not want to risk offering a high LTV. In the event that the borrower fails to make regular payments and the property is seized, there should be enough money generated through the sale of the property for covering the dues of the mortgage. For this reason, lenders today prefer to offer commercial mortgages with a lower LTV.
Do any lenders offer 85% LTV?
Even though most loan companies today prefer to keep the LTV as low as possible, borrowers would still be able to find a handful of loan companies that offer 85% loan to value commercial mortgages. One of the best ways to find such commercial mortgage deals is by contacting a broker or a loan arranging company. There are several such brokers online like Affordable Mortgages, Fair Investment etc that can help borrowers find such deals in 85% commercial mortgages. The lenders that still offer an LTV of 85% on commercial properties today include Santander, Natwest and Post Office.
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A few such lenders can also be found operating online. Borrowers must know that with a high LTV, they would also be repaying and paying interest on a larger loan amount so it is best to think twice before deciding how much LTV mortgage to apply for. Even though it is difficult to find mortgages in UK with a higher loan to value, it can be done in a few cases. Borrowers would need to have the right property in the right location, good income proofs and supporting documents in order to be eligible for a commercial mortgage of this nature.
With the changes that the mortgage sector has been going through in the last few years, mortgages with higher LTV are all but disappearing from the market for the time being. Borrowers who wish to find 85% loan to value commercial mortgages would now have to look harder to find such deals.
Why are lenders reluctant to offer higher LTV?
There are several reasons why lenders today do not wish to offer 85% loan to value commercial mortgages. Commercial mortgages, like any other mortgage would be secured against a property. With the housing market crashing worldwide and the prices of properties declining quite fast, the lenders today do not want to risk offering a high LTV. In the event that the borrower fails to make regular payments and the property is seized, there should be enough money generated through the sale of the property for covering the dues of the mortgage. For this reason, lenders today prefer to offer commercial mortgages with a lower LTV.
Do any lenders offer 85% LTV?
Even though most loan companies today prefer to keep the LTV as low as possible, borrowers would still be able to find a handful of loan companies that offer 85% loan to value commercial mortgages. One of the best ways to find such commercial mortgage deals is by contacting a broker or a loan arranging company. There are several such brokers online like Affordable Mortgages, Fair Investment etc that can help borrowers find such deals in 85% commercial mortgages. The lenders that still offer an LTV of 85% on commercial properties today include Santander, Natwest and Post Office.
A few such lenders can also be found operating online. Borrowers must know that with a high LTV, they would also be repaying and paying interest on a larger loan amount so it is best to think twice before deciding how much LTV mortgage to apply for. Even though it is difficult to find mortgages in UK with a higher loan to value, it can be done in a few cases. Borrowers would need to have the right property in the right location, good income proofs and supporting documents in order to be eligible for a commercial mortgage of this nature.
With the changes that the mortgage sector has been going through in the last few years, mortgages with higher LTV are all but disappearing from the market for the time being. Borrowers who wish to find 85% loan to value commercial mortgages would now have to look harder to find such deals.