Scottish Widows for example will lend 110 per cent of LTV but only to those in professional occupations namely doctors, dentists, solicitors, accountants, pharmacists, teachers or vets.
Northern Rocks Together mortgage range is available to anyone. It allows you to borrow 125 per cent of the property value 30 per cent of which is lent on an unsecured basis (like a personal loan) but is charged at the same rate of the mortgage.
Mortgage Express also offers loans of up to 130 per cent of the property value. In this case however the entire loan is secured on the property, meaning the borrower is in negative equity from day one so its a little riskier, says Gardner.
If you are borrowing a high proportion of the property price typically 90 per cent or more look out for the mortgage indemnity guarantee (MIG), otherwise known as a higher lending charge (HLC). This charge is effectively an insurance that covers the lender should you default on the loan but you pick up the bill. Lenders such as Northern Rock, Nationwide, HSBC and Cheltenham & Gloucester tend not to charge MIG but rates could be higher to reflect it.
Tradition can be best
Borrowing money for a house is one area when it pays to stick with tradition if you can. Borrowing 3.5 times a single salary, with a five per cent deposit, having cleared your debts, first may seem old-fashioned but it will mean cheaper rates and a wider selection of lenders a posi-tion you may not want to stray from if you dont have to.
