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Many Brits are searching in vain for higher loan to value mortgages – but that search needn't be in vain if it's done through a mortgage adviser.

According to Moneysupermarket.com, a third of mortgage searches on its website are for products with a high LTV, but only 25% of mortgages available with LTV higher than 80%.

It also found that not only are there a small number of these products available but the value of the deals is lacking. Out of the thirty top discounted, fixed rate and tracker deals currently on offer, hardly any are available to those with a 20% or less deposit. Moneysupermarket.com says as a result, borrowers looking to fix their mortgage now will pay an average 1.41% more for a fixed rate deal on an 80-90% LTV mortgage compared to a 60% LTV mortgage – two years ago that gap was just 0.05%. On a £100,000 mortgage, this gap equates to £2,364.24 more over two years.

Hannah-Mercedes Skenfield, mortgage specialist at moneysupermarket.com, says: "The best deals are aimed at borrowers who have a sizeable deposit or equity in their homes, but in reality, these products are limited to just a third of the consumers who are looking for a mortgage. For those looking to buy a home, but without a significant deposit, caution must be urged."

Searching through price comparison websites is fine, but these statistics prove that it can be a thankless task. By going to a mortgage adviser, they can do the same search for you but can give you a real appraisal of what sort of loan you are eligible for. It's the difference between a piece of software that compartmentalises you down into numbers and a real, experienced person who can see you as a whole person and can see the mortgage market as something flexible rather than something rigid.

There is no doubt that it's hard to get hold of higher LTV loans, but it's not impossible. They are still out there for good borrowers and they are still being loaned out to many Brits every day. The only problem is how to get hold of them – and that can be solved with the help of a mortgage adviser.

SOURCE: Moneysupermarket.com, 13/10/09

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