Quite a few mortgage lenders have started offering tiered mortgage rates. Preferential rates are available to people with low ‘loan-to-value’ mortgages. eg. Your house is worth £200,000 & your mortgage is £150,000. 150,000/200,000 x 100 = 75% The mortgage is at 75% loan-to-value. People starting out on the property ladder (all 3 of them!) may only have a 10% deposit which means their mortgage will be at 90% loan-to-value. Some lenders are now offering cheaper deals to people with mortgages below 75% loan-to-value with some restricting their best rates to 60% loan-to-value. Woolwich has just announced a market leading fixed rate
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