Mortgage lenders have been literally attacking banks in recent months – and mortgage products with LTVs above 80% are at the center of their interest. These were the hardest recommendations of the SaveSupport Bank.
Newly, the share of mortgages with LTV higher than 80% may be only 15% of all mortgage loans provided by the bank. And as demand is several times higher than supply, it literally pulled by these mortgage products.
Current mortgage interest rates (August 2017)
Think in advance how much you want to borrow and how much you will pay from your own.
The interest rate depends on this.
LTV expresses the ratio between a mortgage loan and the collateral value of a property.
This is an indicative table, the final amount of the mortgage interest rate depends on the specific case.
These mortgage interest rates may be linked to additional terms and conditions of the respective banks (eg loan volume, credit risk insurance, account held with the relevant bank, etc.).
Want the best interest rate for your particular case? We will discuss everything with you individually and advise you. Current interest rates can be found in the MORTGAGE CALCULATOR for your specific case.
Banks are running out of capacity – despite price increases
With high demand, banking institutions can afford price increases. And most of them do so for products with LTVs above 80%; the current average interest rate for mortgages with LTV 85% is 2.09% for three- and five-year fixations. For products with an LTV of 90%, the bidder must then accept an average interest rate of 2.29%.
And while many banking institutions try to push enormous demand down with increased interest, interest is not diminishing. E.g. Savers Hope Bank reports “sold out” – the 15% mortgage limit above 80% of the value of the property has already run out, and clients can apply for more in July.
Unprecedented phenomenon: Mortgages with lower LTV cheaper
The attention of many candidates to the unavailability of mortgages in the higher range shift to products with lower LTV. Logically, interest rates should rise here, however, some banks see the situation differently – and “potential” customers are “betrayed” by lower interest rates of 70-80% from LTV mortgages above 80 %. Until recently, 2.19% interest was linked to mortgages up to 70% of the value of the mortgaged real estate; now clients will get it with 80% LTV.
Loans over 80% LTV? We don’t
But there are also institutions that have solved the new SaveSupport Bank regulations individually – and have simply stopped providing high LTV mortgages.
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