The LTV Extender enables borrowers to go above London Scottish Bank’s maximum 80% LTV by taking a second charge secured loan provided by another lender of up to £15,000 or 100% LTV, whichever is the lower. The interest rate for the secured loan is 1.33% per month and its term can extend beyond the term of the first charge mortgage loan.
The LTV Extender deal is available across the whole of London Scottish Bank’s range of residential mortgages, from Standard Light (three arrears in last twelve months and CCJs of £5,000) through to Non Standard Unlimited (unlimited arrears and CCJs).
Rates on the first charge portion of the LTV Extender are from LIBOR + 1.75%, which includes a 1% discount for the first year. There are no higher lending charges and ERCs of 6% in years one to three and one month’s interest thereafter apply.
No rate loadings are charged for self certification, remortgages and/or buy to let, and income guidelines are that 40% of gross income must cover the mortgage payment, with all other regular outgoings taken into account when assessing affordability. The LTV Extender is available on a range of unusual property types, non standard construction and normal build properties.
Rachel Bancroft, managing director of KGB, said: “The London Scottish Bank’s LTV Extender has been designed as a solution for brokers to offer to clients that need funds over and above London Scottish’s top 80% LTV limit for the first charge mortgage loan. With many extra costs such as fees and (for purchasers) stamp duty, many borrowers can find themselves short of several thousand pounds, even when the top LTV of 80% is applied. The LTV Extender product gives borrowers extra flexibility at the time of the purchase or remortgage to borrow above the maximum LTV, and it offers brokers the chance to add value to the service they can give clients, and to reach a successful outcome for them.”
